A new framework for regulating virtual asset businesses was
introduced in the Cayman Islands on 20 May 2020.
The Cayman Islands Government enacted the Virtual Assets
(Service Providers) Law, 2020 (the VASP Law),
which will come into force upon issue of a commencement order. The
VASP Law derives from recommendations made by the Financial Action
Task Force and provides for the regulation of virtual asset
businesses and for the registration and licensing of persons who
are providing "virtual asset services".
In addition to the VASP Law, the Government has amended a number
of existing laws to extend to virtual assets. These include the
Mutual Funds Law (Revised) (MF Law) and the
Securities Investment Business Law (Revised) (SIB
Law) These amendments are expected to come into
force at the same time as the VASP Law.
