Advisory Warning No. 1 of 2023 - CEX Overseas LTD (2023-06-06)

Summary

This is a public advisory warning issued by the British Virgin Islands Financial Services Commission (FSC) on 6 June 2023, alerting the public that CEX Overseas LTD, part of the CEX.IO group of entities operating the cryptocurrency platform cex.io, is not licensed to carry on virtual asset services business or any other financial services business in or from the BVI, despite being incorporated there as a business company.

• Warning: CEX Overseas LTD and affiliated CEX.IO entities are soliciting customers to buy, sell, trade and earn cryptocurrencies through a platform that is not licensed by the FSC.
• Legal basis: Virtual asset services are regulated under the Virtual Assets Service Providers Act, 2022, which requires companies operating such services to apply to the FSC for licensing.
• Public guidance: Members of the public are advised to exercise caution when transacting with CEX Overseas LTD and to report to the FSC any information about this or other questionable entities purportedly operating in or from the BVI.
• Statutory authority: The advisory is issued under Section 4(1)(l) of the Financial Services Commission Act, 2001.

The document is informational and cautionary in nature rather than a rule change; it does not impose new obligations on regulated entities beyond reiterating the existing VASP Act licensing requirement, and it names no continuing compliance duty specific to this warning itself.

Key obligations

• Companies operating virtual asset services in or from within the BVI were required to submit a licensing application to the FSC by 31 July 2023 under the Virtual Assets Service Providers Act, 2022.
• Members of the public are invited to report to the FSC any relevant information about CEX Overseas LTD or other questionable entities purportedly operating in or from the BVI.

Applies to

virtual asset service providers, members of the public dealing with CEX Overseas LTD

Deadlines

• 31 July 2023: Deadline under the Virtual Assets Service Providers Act, 2022 for companies operating virtual asset services to submit a licensing application to the FSC.