Adam S. Tracy’s Crypto Country Review: British Virgin Islands

Cryptocurrency and hedge fund attorney Adam S. Tracy discusses the pros and cons of locating of your cryptocurrency fund or initial coin offering company in the British Virgin Islands.

Adam S. Tracy:
So I’ve chatted about Belize and Cook Islands, Cayman Islands, Estonia and the like. I want to add one to the list and that’s the BVIs, British Virgin Islands, as a possible crypto destination. I’ve grown increasingly frustrated with the Estonia, Switzerland crowd. I’ve talked about it before. Now, Gibraltar kind of adds to that list.

Adam S. Tracy:
What I don’t get is if you’re planning an ICO or something like that and you’re looking for a friendly jurisdiction, why do you go to a jurisdiction that already has regulation that would be inure or relate to your ICO that you’re going to be doing outside the country, right? You’re not going to domicile in Gibraltar for your ICO so you can cater to and offer your ICO to the 20,000 odd people who live in Gibraltar. Right? That doesn’t make any sense.

Adam S. Tracy:
Same with Estonia and to a lesser extent, Switzerland. They’re small countries. You won’t do it, especially considering most ICOs are just trying to attract US investors and the like. It doesn’t make any sense why people want to flock to where there’s regulation when there’s no regulation to be had somewhere else.

Adam S. Tracy:
I like the term crypto agnostic, right? I think that’s the best way to sort of evaluate jurisdictions when you’re talking about the friendliness to cryptocurrency because the absence of regulation is probably the best thing that you’re going to get. The BVIs is increasingly better only because they’ve yet to do anything that suggests that they’re going to regulate ICOs, whereas you see some activity within the Cayman Islands and other places where they want to regulate that. And they want to regulate ICOs that are domiciled or rising from their borders, even though you may not be offering it to the people of that jurisdiction. It allows you this sort of extra jurisdictional bent, but now that’s being shut down when countries want to jump on the bandwagon of regulating crypto and ICOs that they don’t clearly understand.

Adam S. Tracy:
I like the BVIs. Few reasons. One, obviously no tax, crypto agnostic, they have no crypto regulation. Just simply form an offshore corporation with the intent to offer the ICO outside of the BVIs, which obviously you would. There’s no capital requirements. So Switzerland is very big with that where you have to provide financial statements with your corporations. You have to have a certain requisite capital to form companies in certain instances, and you have to show a certain amount of net capital in certain instances.

Adam S. Tracy:
None of that’s worth it. None of that is worth it. Showing 50,000 marks on your books is not worth it. That does not make any sense that. But the BVI really provides all of that. I think what differentiates BVIs versus a Belize or Nevis, which I’m a huge proponent of Nevis. I think I’ve been one of the leading proponents of Nevis. BVIs has got an optic bent that none of the other crypto friendly jurisdictions that I’ve talked about before really have, right?

Adam S. Tracy:
Estonia may, Switzerland may, but the BVIs, the optics are good, right? BVI is the number one offshore incorporation destination by volume, right? And then you also look at the number of legitimate, large traditional hedge funds, which are based there. There’s quite a few. Between Cayman Islands that’s 90 some odd percent of the world’s hedge funds or domicile saw them one or two locations. So you have this optic bent, which I get the question more and more and it’s like, “Well, you will the optics be right? Will the optics be right if I want to approach high net worth? Would the optics be right if I want to approach institutions.?”.

Adam S. Tracy:
I think that’s a pretty easy sell to say that the optics are correct with BVIs because it’s sort of an accepted offshore jurisdiction. Whereas Nevis and Belize while ideal and they suit the needs of crypto investors because that’s just the nature of Crypto, your more traditional investor may not find BVIs to be so piratey, for lack of a better word. For the tax reasons, the lack of regulation, the crypto agnosticism, as I like to call it, as well as very affordable incorporation fees about twice that of Nevis, and no capital requirements and then obviously privacy. Obviously privacy is a huge thing in crypto and you do have some fairly strict, not as well and not as good and strong as Belize and Nevis and Cook Islands, but you can incorporate something and understand with a fair degree of certainty that it’ll be a private corporation, private transaction.

Adam S. Tracy:
So that’s my take on the BVIs. It’s coming up. That could obviously change. I can’t see anything, or haven’t been able to research anything that would indicate that they are attempting to regulate crypto. I think there was some groundswell of support to sort of not regulate it, which again, the absence of regulations, what you obviously would be looking for, it’s not running to places like Estonian and Gibraltar that pass laws.

Adam S. Tracy:
That doesn’t, that doesn’t quite make a great deal of sense to me, but people will undoubtedly disagree. So feel free to comment. Feel free to comment below as you do. So, hey, check me out. My email, everything’s the below comments. Feel free to reach out to me with any questions. I’d love to hear from you.

A former professional rugby player, Adam S. Tracy brings over twenty years’ experience as an attorney, consultant and dealmaker with a particular focus on cryptocurrency, digital products, payments and immersive corporate structures. As an accomplished executive and advisor to high risk merchants and stakeholders, Adam has proven himself as a results oriented, decisive leader with proven success advising early market entrants, technology adapters, as well as established participants across a wide range of verticals. Adam Tracy’s attack-first personality allows him to excel in dynamic, demanding environments including complex corporate negotiations, distressed environments and regulatory investigations.

In addition, Adam S. Tracy also has a successful track record co-founding high risk industry ventures, building & leading cross-functional teams, and spearheading diverse corporate transactions. A serial entrepreneur, Adam has successfully started and created exits across a wide swath of markets, including various mobile SaaS ventures, nutraceuticals, peer-to-peer payment systems, and several telemarketing-based ventures. Moreover, as a recognized expert in the payments field, Adam Tracy has been a blockchain and digital currency evangelist and influencer since the early days of Bitcoin.

Utilizing his proprietary “Pre-Event Driven™” strategy for decision making, Adam S. Tracy further leverages his over twenty years’ experience to create cost-effective, value-add solutions for each client. A data-driven acolyte, Adam continually refines his strategies based on field studies and data collection. Moreover, Adam Tracy further augments his range of solutions by actively networking with regulators, liquidity providers, legal and compliance experts, deal-flow brokers, investors and management of leading high risk industry ventures.

Adam S. Tracy earned his Bachelor of Science in Computer Applications and Bachelor of Science in Finance from the University of Notre Dame. He subsequently earned his Masters in Business Administration from the DePaul Kellstadt Graduate School of Business, while concurrently earning his Juris Doctorate from the DePaul College of Law. Adam lives outside Chicago with his with his wife, four dogs, and two cats.

On the Web:
Instagram: @theadamtracy
Telegram: @adam_tracy
Skype: @adamtracyesq
Email me:



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