Virtual Asset Services Provider Legislation

The Cayman Islands' position as a hub for the establishment of FinTech structures has been enhanced by the introduction in 2021 of the Virtual Asset (Service Providers) Act (VASP Act) as amended, which provides invaluable regulatory oversight for innovative virtual asset business. This article will explore the key features of the VASP legislation and the registration and licencing regime.

The Cayman Islands has proven to be a popular jurisdiction for establishing a range of digital asset structures, including crypto investment funds, ICOs, exchanges, and entities established in connection with decentralised autonomous organisations (DAOs). Cayman's VASP regulatory framework is based on internationally recognised standards for virtual asset service providers. Virtual asset service providers include companies, limited liability and foreign companies, and general, limited, and exempted limited partnerships, formed and, where required, registered or licenced under the