Payward, the parent company of Kraken, has secured Virtual Asset Service Provider registrations from the British Virgin Islands Financial Services Commission, extending its regulatory footprint into one of the world’s most important offshore financial centers.
On the surface, the approval looks like another crypto licensing announcement. In reality, it represents the latest step in a broader strategy that has transformed Kraken from a cryptocurrency exchange into a global financial infrastructure group operating across Europe, North America, the Middle East, Bermuda, and now the British Virgin Islands.
The approval allows Payward to provide regulated virtual asset services under the British Virgin Islands’ Virtual Assets Service Providers Act, which governs activities including crypto exchange services, custody, transfers, and other digital asset operations.
Lucien Charland, Head of Geo Expansion at Payward, commented, “We are pleased to receive these approvals from the BVI FSC and look forward to continuing to work with the Commission as we build out our licensing portfolio in the jurisdiction. The BVI is an important part of our global regulatory strategy, and these registrations strengthen our ability to serve clients with the certainty and consistency they require.”
Kraken Is Building A Regulatory Network That Few Crypto Firms Can Match
The BVI registration is notable because it fills a gap in Kraken’s global licensing map rather than opening a major new retail market.
Over the last several years, Kraken has assembled one of the most extensive collections of regulatory approvals in the crypto sector. Payward says it now holds more than 100 licenses and registrations globally, spanning Europe, North America, the Middle East, Asia-Pacific, and offshore financial centers. While the company does not publish a complete list, many of its most important approvals are publicly documented.
| Jurisdiction | Regulator | Key Authorization | Strategic Purpose |
|---|---|---|---|
| European Union | Central Bank of Ireland | MiCA Crypto Asset Service Provider | Passporting across the EEA |
| Ireland | Central Bank of Ireland | Electronic Money Institution | Payments and fiat infrastructure |
| United Kingdom | Financial Conduct Authority | Cryptoasset Registration | UK crypto operations |
| Dubai | VARA | Virtual asset authorization | Regional MENA expansion |
| Abu Dhabi | ADGM FSRA | Virtual asset exchange licence | MENA trading and custody services |
| Bermuda | Bermuda authorities | Digital asset operations | International and derivatives activity |
| Canada | Canadian securities regulators | Restricted dealer registration | Regulated Canadian market access |
| British Virgin Islands | BVI FSC | VASP Registration | Fund and offshore structure ecosystem |
The most important approval in the portfolio may be the MiCA license granted by the Central Bank of Ireland in 2025. That authorization allows Kraken to provide regulated crypto services throughout the European Economic Area under a single framework, giving access to roughly 450 million consumers across 30 countries.
In parallel, Payward Ireland maintains an Electronic Money Institution license, giving the group regulated payments capabilities and access to fiat infrastructure alongside its crypto operations.
Outside Europe, Kraken became the first major global crypto exchange to receive a full virtual asset licence from Abu Dhabi Global Market, enabling regulated trading and custody services across the Middle East and North Africa region. More recently, Payward secured authorization from Dubai’s Virtual Asset Regulatory Authority, strengthening its presence in another major crypto hub.
Why The BVI Approval Matters More Than It Appears
Unlike MiCA or Dubai’s VARA framework, the British Virgin Islands approval is not primarily about retail investors.
The BVI occupies a unique position in global finance because it serves as a domicile for investment funds, holding companies, special purpose vehicles, trusts, and international corporate structures used by institutions worldwide.
Many crypto funds, venture structures, token issuers, treasury vehicles, and investment entities operate through BVI companies. As a result, obtaining authorization in the jurisdiction provides access to a different category of client than a retail-focused European or Middle Eastern licence.
| License | Main Client Type | Primary Value |
|---|---|---|
| MiCA | Retail and institutions | EU-wide passporting |
| FCA Registration | UK clients | UK regulatory access |
| VARA | Middle East investors | Dubai market access |
| ADGM | Regional institutions | MENA trading and custody |
| Bermuda | International and derivatives clients | Offshore digital asset operations |
| BVI VASP | Funds and offshore structures | Access to fund ecosystem |
That distinction explains why the registration matters despite the territory’s small population. The value lies in the financial structures domiciled there rather than the number of local investors.
The BVI framework permits regulated activities including exchange services between virtual assets and fiat currencies, virtual asset custody, transfers, and participation in virtual asset offerings. These are the building blocks required by funds and corporate structures operating within the digital asset ecosystem.
Payward Is Quietly Becoming Financial Infrastructure
The licensing expansion also reflects a broader evolution within the company.
Most investors still view Kraken primarily as a crypto exchange. Increasingly, Payward is positioning itself as a financial infrastructure provider operating multiple businesses on a common regulatory and technology foundation.
The group now includes Kraken, NinjaTrader, CF Benchmarks, and xStocks, while also expanding into payments, institutional services, tokenization infrastructure, and derivatives. Recent strategic moves included the planned acquisition of Bitnomial’s derivatives infrastructure and the announced acquisition of stablecoin payments company Reap Technologies.
The strategy resembles developments elsewhere in financial services. Rather than competing solely on trading volumes, firms increasingly seek to control custody, payments, settlement, market data, benchmark administration, derivatives infrastructure, and regulatory access.
That approach may ultimately prove more valuable than adding another cryptocurrency listing or launching another trading product. Licenses are difficult to obtain, expensive to maintain, and increasingly function as barriers to entry.
The BVI registration is therefore less important as a standalone approval than as another piece of a growing global regulatory network. As crypto markets mature and institutional participation increases, the firms with the broadest infrastructure and deepest regulatory reach may have a significant advantage over competitors operating in only a handful of jurisdictions.
Takeaway
Payward’s British Virgin Islands approval is not really a story about the BVI. It is a story about Kraken’s transformation into a regulated global financial infrastructure business. MiCA gives the group access to Europe. VARA and ADGM provide entry points into the Middle East. Canada, the UK, Bermuda, and now the BVI add additional layers of regulatory reach. The result is a licensing network that few crypto firms can currently match and one that positions Payward to compete not only with crypto exchanges, but increasingly with broader financial market infrastructure providers.