The Cayman Islands, an autonomous territory abroad in the Caribbean that has attracted many cryptographic companies in recent years thanks to its friendly regulatory structure, now requires that companies that provide custody and trade services to obtain a license.
According to the updated regulations of virtual assets (service providers) (amendment) of the country, the new law will enter into force on April 1, 2025, and companies that already operate in the country must submit their application before June 29, 2025.
The application process asks the custodians to reveal the types and amount of cryptography they plan to keep in the name of their customers, as well as to provide justification to guarantee the safe storage of these cryptocurrencies, among other things.
Commercial platforms, on the other hand, will have to give an idea of their expected income and the physical location of their operational hardware, as well as reveal how they will guarantee the safety of these assets.
The initial set of rules of the Cayman Islands for virtual asset services suppliers (VASPS) entered into force in 2021. The framework was designed to “strengthen” the government’s ability to attract new entities.
Since then, several small and large cryptographic companies have obtained licenses in the country, including Coinbase, Binance, Bitwise. Others have even opened the headquarters in the area, such as the Sui Foundation.
