Policy, Cayman Islands, Policy The new legislation will go into impact on April 1, 2025.
The Cayman Islands, an autonomous British Overseas Territory within the Caribbean that has attracted many crypto companies over the previous a number of years because of its pleasant regulatory construction, now requires firms that present custody and buying and selling providers to acquire a license.
According to the nation’s updated Virtual Asset (Service Providers) (Amendment) Regulations, the brand new legislation will go into impact on April 1, 2025, and companies already working within the nation will likely be required to submit their utility earlier than June 29, 2025.
The utility course of asks custodians to reveal the kinds and quantity of crypto they plan to carry on behalf of their purchasers in addition to present justification for guaranteeing the safe storage of those cryptocurrencies, amongst different issues.
Trading platforms, alternatively, must give perception into their anticipated income and the bodily location of their operational {hardware} in addition to disclose how they’ll guarantee the protection of these property.
The Cayman Islands’ preliminary algorithm for digital asset service suppliers (VASPs) came into effect in 2021. The framework then was designed to “strengthen” the federal government’s means to attract new entities.
Since then, a number of small and huge crypto companies have obtained licenses within the nation, together with Coinbase, Binance, Bitwise. Others have even opened headquarters within the space, reminiscent of Sui Foundation.
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