Phase Two of virtual asset services framework in effect

Phase two of the regulatory framework for virtual asset services in the Cayman Islands is in effect, as of 1 April, with the following amended acts and regulations:

The Virtual Asset Service Providers (VASP) regime has been commenced in phases, to bring into effect global regulatory standards and prudential measures, and to then give individuals and entities time to become compliant with the requirements, the Ministry of Financial Services said in a press release.

Phase one introduced a registration requirement which focused on anti-money laundering and countering the financing of terrorism (AML/CFT) measures. Phase two now introduces a licensing regime for trading platform operators and virtual asset custodians, and focuses on introducing prudential measures for the provision of those services.

A third phase is envisioned to address the remaining elements of the regulatory framework.  

The amended acts and regulations give the Cayman Islands Monetary Authority (the regulator for virtual assets in Cayman) additional powers for supervising virtual asset services, and provide greater clarity for the sector in the jurisdiction.

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