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ARTICLE · 17 MARCH 2025

VASP Phase 2 Introduction & Amendments

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From 1 April 2025, Phase 2 of the Virtual Asset Service Providers ("VASP") Regulatory Framework (Licensing Phase) comes into effect in the Cayman Islands pursuant to the introduction of the Virtual Asset.

Cayman IslandsTechnology
Jonathan McLean
Jonathan McLean
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From 1 April 2025, Phase 2 of the Virtual Asset Service Providers ("VASP") Regulatory Framework (Licensing Phase) comes into effect in the Cayman Islands pursuant to the introduction of the Virtual Asset (Service Providers) Amendment Act, 2024 (the "VASP Amendment Act") which amends the Virtual Asset (Service Providers) Act (Revised) (the "VASP Act"). Additionally, other amendments to the VASP Act and its regulations will also come into effect at this time which will affect all existing entities regulated under the VASP Act.

Introduction of VASP Phase 2

The VASP Amendment Act establishes the regulatory framework for phase two of the Cayman Islands' VASP regime, introducing a licensing system for virtual asset trading platforms and custodians.

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