The Cayman Islands Government has announced that the Virtual
Asset (Service Providers) Law, 2020 (the "VASP
Law") will come into force in two phases.
Phase one, commencing on 31 October 2020, will focus on
anti-money laundering (AML) and countering the financing of
terrorism (CFT) compliance, supervision and enforcement.
Phase two, which will include licensing requirements and
prudential supervision, is expected to come into force in June
2021.
Phase One
Entities engaged in or wishing to engage in virtual asset
services ("VASPs") must now register
with the Cayman Islands Monetary Authority
("CIMA") under the VASP Law. VASPs that
are currently subject to CIMA's supervision under another
regulatory law must notify CIMA (in the case of licensees) or
register with CIMA (in the case of registrants) under the VASP
Law.
