Updated Cayman VASPs Regulatory Framework Guidelines

On 15 May, 2024, the Cayman Islands Monetary Authority (“CIMA”) released its regulatory policy setting out criteria for approving the registration of virtual asset service providers (“VASPs”) as per the Virtual Asset (Service Providers) Act (“VASP Act”).

Applications must include detailed information on business plans, ownership structures, and compliance frameworks. Additional information may be requested and due diligence may be conducted with foreign regulators.

CIMA also evaluates:

• The fit and propriety of shareholders and senior officers.
• Ownership and control structures, ensuring transparency and compliance.
• Corporate governance frameworks.
• Detailed business plans covering operations, financials, and risk management.
• Internal systems and controls, particularly for IT and cybersecurity. 

CIMA will not consider application from entities operating without registration or a licence. CIMA will use a consolidated supervisory approach guided by relevant laws and policies and may request additional information as needed to process applications.

If you need help to ensure your VASP entity is up to date and compliant, please contact us at info@stuartslaw.com or email Jon McLean.

Learn more about our full suite of Virtual Assets Services and Regulatory and Compliance Services.