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ARTICLE · 17 APRIL 2025

Regulatory Update: Cayman Islands VASP Licensing Regime Now In Effect

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The Cayman Islands Government has taken a significant step in the regulation of virtual asset service providers (VASPs) with the commencement of the licensing regime under the Virtual Asset (Service Providers) Act.

Cayman IslandsFinance and Banking
Róisín Liddy-Murphy
Róisín Liddy-Murphy
Sarah Howie
Sarah Howie
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The Cayman Islands Government has taken a significant step in the regulation of virtual asset service providers (VASPs) with the commencement of the licensing regime under the Virtual Asset (Service Providers) Act (as revised) (the VASP Act).

The Virtual Asset (Service Providers) Act (Commencement) Order, 2025 (the Commencement Order) has now activated the requirement for certain virtual asset services, including custody services and the operation of a virtual asset trading platform, to be conducted under a full licence issued by the Cayman Islands Monetary Authority (CIMA).

Key Implications for Virtual Asset Businesses

Licensing Requirement for Custody and Operation of a Trading Platform: With the Commencement Order now in effect, entities providing custody services or operating a virtual asset trading platform must obtain a licence from CIMA to continue operating lawfully in the Cayman Islands.

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