The Cayman Islands has up to date its crypto regulatory regime, introducing new licensing guidelines by way of a legislative modification. From 1 April 2025, entities providing digital asset custody and buying and selling platform companies in or from the Cayman Islands should acquire a licence.
Mandating a Licence for All
The replace in crypto licensing has been clarified by way of the newest Digital Asset (Service Suppliers) (Modification) Laws, 2025, which has already obtained approval from the nation’s lawmakers. The Cayman Islands Financial Authority (CIMA) will oversee the regulated crypto companies.
Beneath the brand new guidelines, current digital asset service suppliers (VASPs) already working in or from the islands should submit their licence purposes inside 90 days from 1 April 2025.
When making use of for a licence, crypto custodians should inform the regulator of “the kinds and quantities of digital belongings” they suggest to carry on behalf of their purchasers and the explanations for facilitating the safekeeping of those cryptocurrencies, amongst a number of different issues.
However, buying and selling platform operators should point out their anticipated income and the situation of the bodily {hardware} for his or her operations. Together with different customary paperwork, these platforms should additionally present “an overview of technique and measures in place for cybersecurity, danger administration, the safeguarding of digital belongings, and inner controls throughout the enterprise to forestall loss and theft.”
An Offshore Territory Attracting Crypto Companies
The Cayman Islands is a British Abroad Territory consisting of three islands within the western Caribbean Sea. It is usually house to many foreign exchange and contracts for variations (CFDs) brokers operating offshore operations from there.
The islands initially applied the Digital Asset (Service Suppliers) Act (VASP Act) in 2020, which requires VASPs to be licensed or registered with CIMA. Nevertheless, the first function of that laws was to determine anti-money laundering (AML) and counter-terrorist financing (CTF) measures.
In line with TheBanks.eu, there are at present 17 VASPs registered within the Cayman Islands and supervised by CIMA. These corporations embody main retail and institutional names equivalent to Blockchain.com, Crypto.com, and B2C2.
This text was written by Arnab Shome at www.financemagnates.com.