The implementation of new virtual asset related legislation in
Jersey, Cayman and BVI earlier this year provides evidence that
these forward-thinking jurisdictions are welcoming service
providers who have dealings in virtual assets (VASPs) and realise
that with the right AML framework in place, there are many benefits
to embracing virtual assets.
Once considered too risky to be adopted by larger financial
services providers we see that new regulatory requirements relating
to virtual assets are rigorous, but do not stifle innovation.
Most regulators have adopted the Financial Action Task Force
(FATF) VASP definition and have incorporated it into the revised
legislation, changing it so that more entities are now in scope.
This may have resulted in a number of entities not realising that
they now require a licence to continue handling/managing virtual
assets or tools used to control the movements of them
such as seed phrases.
