The Cayman Islands have launched new legal guidelines for a regulatory tightening for crypto operators, imposing licensing obligations for buying and selling and custody service suppliers.
The brand new legal guidelines, already accepted by the native legislator, will come into impact from April 1, 2025.
New crypto legal guidelines and Licensing Obligations within the Cayman Islands
The modifications have been formalized by the Digital Asset (Service Suppliers) (Modification) Laws, 2025, a regulatory replace that confirms the position of the Cayman Islands Financial Authority (CIMA) in supervising the operators within the sector.
Ranging from the efficient date, each entity providing custody companies or cryptocurrency buying and selling platforms, primarily based or working within the Cayman Islands, might want to acquire a selected license.
Deadlines for Current Service Suppliers
The already lively operators must submit a license utility inside 90 days from April 1, 2025, to legally proceed their actions.
Intimately:
– The custodians of cryptocurrencies must inform CIMA in regards to the sorts and portions of digital belongings they intend to carry on behalf of shoppers and the explanations for the custody.
– Buying and selling platforms might want to point out income forecasts and the situation of the bodily {hardware} used for operations.
Extra paperwork required for buying and selling platforms:
– A cybersecurity technique to guard customers’ funds.
– A plan for threat administration and the prevention of losses and theft.
– Inner measures for management and safeguarding of digital belongings.
A Hub within the Cayman Islands for the Monetary and Crypto Sector
The Cayman Islands, a British abroad territory situated within the western Caribbean, are an engaging hub for offshore monetary operators, together with foreign exchange and CFD brokers.
The nation launched particular crypto regulation in 2020 with the Digital Asset (Service Suppliers) Act (VASP Act). This regulatory framework was primarily aimed toward combating cash laundering (AML) and countering the financing of terrorism (CTF).
In keeping with the info from TheBanks.eu, there are at present 17 digital asset service suppliers (VASP) registered and supervised by CIMA. Amongst these are Blockchain.com, Crypto.com, and B2C2, distinguished firms within the retail and institutional sector.
Implications for the Crypto Sector
With the introduction of those new rules, the federal government of the Cayman Islands goals to strengthen the regulatory framework and enhance the safety of the crypto sector.
Stricter supervision may encourage dependable operators and discourage illicit actions, consolidating the archipelago’s popularity as a protected worldwide monetary hub compliant with international rules.