The findings come as a pro-crypto and blockchain administration in the United States has passed the Genius Act – the first major US national crypto legislation, while the United Kingdom also recently published draft legislation for crypto assets and the industry continues adapting to the Markets in Crypto-Assets Regulation which came into force last year in Europe.

Further findings from the survey of 451 fintech executives include:

• Close to two-fifths of global businesses (39%) cited regulatory changes and compliance as a geopolitical trend having a significant impact on their business
• Over a quarter (28%) of global fintech executives say navigating complex and ever-changing regulations is a key issue for their business – particularly burdensome for those operating across multiple markets, where differing standards and governance structures can create inefficiencies and increase costs
• When considering regulatory challenges, 32% of fintech leaders emphasize the importance of a jurisdiction with a clear licensing framework for fintech and virtual assets
• Privacy and asset protection laws are a priority for deciding where fintech businesses choose to incorporate, with 29% of businesses valuing strong legal safeguards for their operations
• 24% of fintech leaders emphasise the importance of a business-friendly legal framework, helping to reduce operational complexity and allow the businesses to foster innovation

Elise Donovan, CEO, BVI Finance, said: “Fintech companies are a different generation of business – operating cross-border is a non-negotiable. However, this means their models are susceptible to regulatory shifts and disparity between markets.

“Regulatory certainty is vital for fintech and crypto business growth. Predictable licensing, clear rule enforcement and cross-border recognition all enable informed long-term planning and allow these businesses to instead focus on delivering new products and services to customers as quickly as possible.

“With the focus on finding a jurisdiction to incorporate that offers certainty and stability, the BVI stands out due to its favourable regulatory environment and flexible company and partnership laws, facilitating efficient business operations and exits.”

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