Key Highlights
- A DWF Labs group entity has received Virtual Asset Service Provider approval from the British Virgin Islands Financial Services Commission.
- The registration covers virtual asset exchange and financial services connected with an issuer’s offer or sale of virtual assets.
- DWF Labs says the regulated BVI entity will support its OTC trading and market-making services for institutional clients.
Crypto market maker DWF Labs said Thursday that one of its group entities has received Virtual Asset Service Provider (VASP) regulatory approval from the British Virgin Islands Financial Services Commission (BVI FSC), expanding the firm’s regulated operations for institutional clients.
According to the company’s September 3 announcement, the registration was granted under the British Virgin Islands’ Virtual Assets Service Providers Act, 2022. It authorizes the entity to exchange one or more forms of virtual assets and provide financial services related to an issuer’s offer or sale of virtual assets.
DWF Labs did not identify the group entity that received the registration in its announcement.
The company said institutional clients will be able to access its over-the-counter trading and market-making operations through the regulated BVI entity, including spot trading involving digital assets and stablecoins.
What Does the BVI VASP Approval Cover?
The BVI’s Virtual Assets Service Providers Act, 2022 established a regulatory framework for businesses providing virtual asset services from or within the territory.
The law came into force on February 1, 2023, with the BVI FSC designated as the authority responsible for registering and supervising VASPs. Its requirements cover areas including registration, reporting, client asset protection, auditing and anti-money laundering and counter-terrorist financing compliance.
DWF Labs said the newly registered entity can also support its investment, incubation and ecosystem-development activities involving token issuers and digital asset projects. However, the specific regulatory permissions disclosed by the company relate to virtual asset exchange and financial services connected with virtual asset offers or sales.
Heng Lee, managing director and partner at DWF Labs, described the approval as a step toward expanding the company’s regulated services for international institutional clients.
Lee, said, “The Virtual Asset Service Provider (VASP) approval from the British Virgin Islands Financial Services Commission (BVI FSC) is a key step in responsibly expanding and delivering DWF Labs’ regulated digital asset services to international institutional clients.”
“As the digital asset market and industry continue to mature, and adoption increases, this addition to our regulatory framework will enable us to deliver a broader range of solutions, products, and services, while reinforcing our focus upon transparency and governance.”
BVI Builds Role in Tokenized Asset Market
The approval also gives DWF Labs a regulated presence in a jurisdiction that has become increasingly involved in tokenized financial assets.
DWF Labs cited RWA.xyz data showing about $1.5 billion in distributed tokenized U.S. Treasury value associated with BVI structures. For comparison, RWA.xyz reported $15.92 billion in total distributed tokenized U.S. Treasury value globally as of September 3.
BVI Finance had similarly reported in June that the territory accounted for more than 10% of the global tokenized U.S. Treasury market at the time, with $1.5 billion in distributed value as of June 1. It also reported more than $1.2 billion in stablecoins linked to BVI-domiciled entities.
DWF Labs has increasingly focused on markets connected with tokenized traditional assets. The Crypto Times recently reported August 29, that the firm expects further growth in real-world asset perpetual markets as on-chain venues expand trading in stocks, commodities and other traditional assets.
The BVI registration adds a regulated entity to those operations as DWF Labs continues expanding its institutional trading and digital asset infrastructure businesses.
Also Read: BitGo Korea Secures VASP Registration for Institutional Custody
