While previous studies in computer-assisted language learning have extensively explored sociolinguistic factors, such as cultural competence, important psycholinguistic factors such as online L2 motivational self-system, L2 grit, and online self-regulation in relation to virtual exchange (VE) have remained widely unexplored. To address this gap, a study was conducted with 92 Spanish English as a foreign language learners who exchanged language and culture with Cypriot and Irish students and responded to questionnaires adapted for the study context, as part of the SOCIEMOVE (Socioemotional Skills Through Virtual Exchange) Project. The partial least squares structural equation modeling approach showed that language learners who set positive personal goals for the future and evaluate their current learning progress in VE can regulate their learning in it. Interestingly, the sign of authenticity gap was found in the study context, since learners’ motivation to learn in VE was higher compared to their previous language learning contexts, resulting in more effort and consistency of interest in setting their goals, evaluating their progress, and asking for help from others. Furthermore, learners’ L2 grit moderated and mediated the correlation between learners’ online motivation and online self-regulation, indicating that VE success requires long-term perseverance of effort and consistency of interest. Accordingly, a new conceptual framework for VE was developed. In addition, one of the main implications is that teachers who employ VE should focus more on learners’ current needs and the goals they wish to achieve when exchanging information rather than only focusing on their accomplishments based on the course syllabus.