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The British Virgin Islands Financial Services Commission (BVI FSC) is the regulatory authority responsible for supervising all financial services in the British Virgin Islands, including forex and CFD brokers operating from this offshore jurisdiction. While the BVI FSC enforces some structural requirements for licensing, it is widely considered a Tier-3 regulator due to its minimal client protection, lack of trading restrictions, and limited enforcement capabilities.

Forex brokers in the BVI must obtain an Investment Business Licence under the Securities and Investment Business Act (SIBA). Licensing requirements include:

• Local company registration
• Minimum paid-up capital (typically around $100,000 USD or more)
• Appointment of local directors and compliance officers
• Submission of internal policies, AML documentation, and financial projections

However, the regulatory framework does not impose leverage caps, does not restrict deposit bonuses or marketing tactics, and does not require retail investor compensation funds. There is also no enforceable mandate for client fund segregation, though brokers may choose to follow international best practices voluntarily.

The BVI FSC maintains a public register of licence holders and occasionally issues warnings, but enforcement actions are rarely publicised. While some BVI-licensed brokers are subsidiaries of larger groups with Tier-1 licences, others rely solely on this offshore licence to operate globally, often targeting markets with little regulatory control.

Retail traders engaging with BVI-regulated brokers should conduct thorough due diligence and ensure the broker is part of a globally regulated group. On its own, BVI regulation provides limited safeguards against fraud, insolvency, or unfair trading conditions.