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Aki Corsoni-Husain
Aki Corsoni-Husain
  • Aki Corsoni-Husain

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George Apostolou
George Apostolou
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Chiara Deceglie
Chiara Deceglie
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Massimiliano della Zonca
Massimiliano della Zonca
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Philip Graham
Philip Graham
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Ayana Hull
Ayana Hull
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Katerina Katsiami
Katerina Katsiami
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Petros Kiteos
Petros Kiteos
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Andrew Knight
Andrew Knight
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Evi Koutsioumpa
Evi Koutsioumpa
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  • Senior Associate
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Joshua Mangeot
Joshua Mangeot
  • Joshua Mangeot

  • Counsel
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Mirza Manraj
Mirza Manraj
  • Mirza Manraj

  • Counsel
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Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
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Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

  • Partner
  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Associate
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
  • Cyprus
Matt Taber
Matt Taber
  • Matt Taber

  • Partner
  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Senior Associate
  • Cayman Islands

Cayman introduces new regulatory regime for virtual asset businesses

In mid-2020, the Cayman Islands government introduced a new framework for regulating virtual asset businesses, known as “virtual asset service providers” (VASPs). The Virtual Asset (Service Providers) Law, 2020 sets out this regulatory regime but is not yet in force.

The framework implements Financial Action Task Force recommendations for registering and licensing VASPs; clearly defines what virtual assets are and which constitute securities; enables funds to use virtual assets as representations of equity interests; recognises virtual asset trading exchanges; and introduces a regulatory sandbox licence.

This means that all VASPs will be subject to licensing or registration, and regulatory requirements beyond compliance with Cayman’s AML rules (covered in a previous post). The framework makes Cayman an attractive destination for VASPs, as it demonstrates Cayman’s commitment to international standards, provides legal and regulatory certainty and supports innovation.

Please see our client alert for more details.