Elise Donovan: «Structuring Asia’s Digital Asset Future»

Elise Donovan: «Structuring Asia’s Digital Asset Future»

Asia is home to some of the most dynamic innovators in digital assets, writes Elise Donovan, CEO of BVI Finance, in an op-ed on finews.asia. Yet behind this wave of innovation lies a pressing question: where should these businesses structure to achieve long-term growth, credibility, and compliance?

As the sector matures, digital asset companies need to become more strategic in their structuring decisions to ensure they earn confidence from investors, whilst remaining compliant with fast-evolving global regulations. In order to achieve this, digital asset companies in Asia have increasingly turned to offshore jurisdictions as they emerge as an attractive option.

Cross-Border Growth Demands Efficient and Clear Structures

Our recent «Destination Digital» study of 451 fintech executives shows that 95 percent of leaders in China, Singapore, and Hong Kong view cross-border expansion as critical. For founders, that means efficient incorporation. For legal advisors, it means regulatory clarity. For fund managers, it means investor confidence. And for tokenization, stablecoin, and DeFi firms, it means an environment where innovation and compliance coexist.

Offshore jurisdictions provide precisely that balance. They offer internationally recognized legal systems, corporate agility, and the neutrality needed for businesses to scale globally. For example, the British Virgin Islands (BVI) has long supported Asia’s fintech ecosystem with incorporation processes measured in days, not months, and a clear framework for cross-border capital flows. These features allow founders to focus on building, while regulators and advisors can rely on well-tested, transparent governance standards.

Building Investor Confidence Through Regulatory Alignment

One of the strongest signals of maturity in the offshore world is alignment with international standards. In the BVI, for example, we recognize the importance of providing a supportive environment for innovation and have long supported Asia’s fintech ecosystem.

Our Virtual Assets Service Providers Act (VASP Act 2022) provides legal certainty for digital asset businesses. It offers regulatory clarity, mandating registration and compliance whilst simultaneously aligning with international guidelines, offering a stable foundation for growth and remaining aligned with international FATF standards.

Distinct Nature of Decentralized Exchanges

This is particularly relevant for centralized and decentralized exchanges (CEX/DEX), stablecoin issuers, and crypto treasuries navigating anti-money laundering (AML)/ know-your-customer (KYC) requirements across borders. Offshore jurisdictions recognize the distinct nature of decentralized exchanges and have crafted regulations that accommodate their decentralized structure.

This includes understanding the nuances of smart contracts, providing comprehensive cybersecurity protection and providing clear guidance on how to innovate safely.

For crypto fund and wealth managers, offshore jurisdictions, like the BVI, often have established reputations as trusted fund domiciles, translating directly into investor assurance. Our flexible corporate and partnership laws support everything from early-stage crypto funds to sophisticated institutional strategies.

Catalyzing growth

Fintech companies operating across emerging technologies, particularly exchanges, stablecoins, and crypto treasuries, require easy and quick cross-border expansion. Firms do not have time for slow processes that lack clear and reliable operational regulation policies.

Jurisdictions that offer favorable tax regimes, flexible regulatory frameworks, and efficient incorporation processes that allow businesses to move quickly and effectively will support this area of fintech globally. Tax regimes, flexible regulatory frameworks, and efficient incorporation processes that allow businesses to move quickly and effectively will support this area of fintech globally.

Without the Fear of Regulatory Roadblocks

By offering a flexible legal environment, offshore jurisdictions allow founders and legal advisors to experiment with new technologies and expand seamlessly across borders, empowering business models without the fear of regulatory roadblocks. Crucially, offshore jurisdictions like the BVI are future-ready. They offer already developed frameworks that support tokenization projects, virtual asset service providers, and stablecoin issuers, while maintaining alignment with international standards.

The legal and regulatory ecosystems provided are designed to accommodate evolving business models - from centralized and decentralized exchanges to crypto treasuries and wealth managers – giving founders and legal advisors the confidence to expand seamlessly across borders.

Elise Donovan is the CEO of BVI Finance, bringing a wide range of work experience in Asia, North America, the Caribbean, and Africa. She has played a major role in expanding and deepening the BVI’s financial services footprint in cities around the world, particularly in the Asia Pacific region, through strategic relationship building, conducting forums and seminars on the BVI’s financial services business, including at major financial institutions.