The first stage of the virtual asset service provider regulatory regime commenced on 31 October 2020.

The new regime is being introduced in two stages. The first stage focuses on AML/CFT compliance, supervision and enforcement and the second stage of the regime will be introduced in June 2021.

Persons wanting to be, or who are, engaged in virtual asset services must register with CIMA and those entities that are already licensed by CIMA under another regulatory law must notify CIMA. The registration/notification is through REEFS and the process must be completed by 31 January 2021 as the penalties, offences and enforcement provisions commence on that date. CIMA will publish a registration/notification filing deadline prior to that date.

A detailed article with all the recent developments, authored by Matt Taber, Partner in our Cayman Islands office can be found here and for further information on the framework please see our client guide here or contact your usual Harneys representative.