Payward, the parent company of Kraken, has secured a Virtual Asset Service Provider (VASP) registration from the British Virgin Islands Financial Services Commission (BVI FSC). This is not just another crypto license — the BVI is a critical offshore financial hub, and the approval allows Payward to serve funds and offshore structures operating in the jurisdiction.
Lucien Charland, Head of Geo Expansion at Payward, stated: "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."
License Portfolio: From Europe to the Middle East and Offshore Centers
Over the past few years, Kraken has built one of the broadest regulatory networks in the crypto industry. Payward now holds more than 100 licenses and registrations globally, covering Europe, North America, the Middle East, APAC, and offshore financial centers. Key authorizations include: MiCA license from the Central Bank of Ireland (passportable across the EEA), Irish Electronic Money Institution license, UK FCA cryptoasset registration, Dubai VARA authorization, Abu Dhabi ADGM virtual asset exchange license, Bermuda digital asset operations permit, and Canadian restricted dealer registration.
The MiCA license is arguably the most critical: it allows Kraken to serve approximately 450 million consumers across 30 countries under a single regulatory framework. The e-money license gives Payward regulated payments capabilities and access to fiat infrastructure.
In the Middle East, Kraken became the first major global crypto exchange to receive a full virtual asset license from ADGM, enabling regulated trading and custody services across MENA. It later secured VARA authorization in Dubai, strengthening its presence in another key crypto hub.
What the BVI License Really Means — Not About Retail
Unlike MiCA or VARA, the BVI registration is not primarily aimed at retail investors. The BVI is a domicile for investment funds, holding companies, special purpose vehicles, trusts, and international corporate structures. Many crypto funds, venture structures, token issuers, treasury vehicles, and investment entities operate through BVI companies. Hence, obtaining authorization here provides access to a different client category — the fund and offshore structure ecosystem, rather than retail users.
The BVI framework permits exchange between virtual and fiat currencies, custody, transfers, and participation in virtual asset offerings — the building blocks required by funds and corporate structures in the digital asset ecosystem.
From Exchange to Financial Infrastructure: Payward's Quiet Evolution
The license expansion also reflects a broader evolution. Most investors still see Kraken as a crypto exchange, but Payward is increasingly positioning itself as a financial infrastructure provider, operating multiple businesses on a unified regulatory and tech foundation. The group now includes Kraken, NinjaTrader, CF Benchmarks, and xStocks, and is expanding into payments, institutional services, tokenization infrastructure, and derivatives. Recent moves include the planned acquisition of Bitnomial's derivatives infrastructure and the announced acquisition of stablecoin payments company Reap Technologies.
The strategy mirrors broader trends in financial services: firms are competing not just on trading volumes but on controlling custody, payments, settlement, market data, benchmark administration, derivatives infrastructure, and regulatory access. Licenses are hard to obtain, costly to maintain, and increasingly act as barriers to entry. The BVI registration, therefore, matters less as a standalone approval than as another piece of a growing global regulatory network. As crypto markets mature and institutional participation grows, firms with the broadest infrastructure and deepest regulatory reach may hold a significant advantage over competitors operating in only a handful of jurisdictions.