GRAND CAYMAN 03-Nov-2020 – The Cayman Islands Government has introduced a regulatory framework for Virtual Asset Service Providers (VASP). This framework will be introduced in two phases, with the first stage beginning on October 31st, 2020.
The initial phase will concentrate on anti-money laundering (AML) and countering the financing of terrorism (CFT) measures. VASPs that are presently working in the Cayman Islands are required to notify and register with the Cayman Islands Monetary Authority (CIMA) and comply with AML/CFT rules.
The second phase of the framework is expected to be introduced in June of 2021 and will primarily concentrate on licensing requirements for virtual asset custodians and trading platform operators, the sandbox licensing regime and other elements included in the VASP law.
“We are very happy to see the first steps being taken in the phased Cayman VASP regulations approach with the opening of the registration process,” said Petri Basson, Chairman of the Blockchain Association of the Cayman Islands (BACI). “We look forward to the implementation of the licensing regimes and sandbox.”