Proposed changes to the Cayman Islands Virtual Asset (Service Providers) Act

The Ministry for Financial Services and Commerce of the Cayman Islands has put forward amendments to the Virtual Asset (Service Providers) Act 2020 for public consultation. Proposed changes focus on four key areas:

• Licensing regime: Introducing a licensing regime for virtual asset trading platform operators and custodians, to ensure these services are provided in a safe and regulated manner.
• Simplified fee structure: Enhancing the existing fee structure to be a more streamlined and transparent fee assessment payable by a new applicant. New licensing fees are also suggested.
• Definitions and revisions: Redefining terms such as "operator" and "convertible virtual asset" and revising “existing licensee” to “supervised person”. In addition, virtual asset service providers need a minimum of two directors as required by existing regulatory laws, and the audit provisions have been revised to provide greater clarity.
• Financial Action Task Force recommendations: Strengthening the regulator's ability to enforce requirements, providing a more robust AML framework within the Cayman Islands.

Your feedback can be submitted here. The consultation period is open until 20 March 2024.