The Draft VAITOS Rules Part 3: Are There Sufficient Systems And Controls To Protect Rights Of Virtual Asset Owners?

The general obligations of a virtual asset service providers (the 'VASP') under the VAITOS (Statutory Returns) Rules 2022 (the 'Statutory Returns Rules') and the VAITOS (Cybersecurity) Rules 2022 (the 'Cybersecurity Rules'), as well as the obligations specific to custodians under the VAITOS (Custody of Client Assets) Rules 2022 (the 'Custody Rules') are summarised in this final part of our series exploring the rules relating to virtual assets and initial token offerings (the 'VAITOS Rules').

Obligations under the Statutory Returns Rules applicable to all VASPs

A VASP must, in accordance with rule 4 of the Statutory Returns Rules, promptly notify the Financial Services Commission (the 'FSC') of the occurrence of certain events such as (i) an actual or potential breach of the Virtual Assets and Initial Token Offerings Act 2021 (the 'VAITOS Act') or the FSC rules, (ii) any changes in relation to its licence or registration, (iii) any actual, suspected or likely