The Cayman Islands have updated their cryptographic regulations and introduced new licensing rules through legislative amendments. Starting April 1, 2025, entities providing custody and trading platform services for virtual assets in or in the Cayman Islands must obtain a license.
A license is required for all people
Crypto-license updates have been made clear through the latest Virtual Assets (Service Providers) (Amendment) Rules, 2025, and have already been approved by national lawmakers. The Cayman Islands Monetary Authority (CIMA) oversees regulated crypto companies.
Under the new rules, existing virtual asset service providers (VASPs) already operating on or on the island must submit a license application within 90 days from April 1, 2025.
When applying for a license, the cryptocurrency administrator must propose to retain it on your behalf and notify the regulator of reasons for encouraging the security of these cryptocurrencies.
Meanwhile, trading platform operators must show the expected revenue and location of physical hardware for operations. Along with other standard documents, these platforms should also provide an “overview of strategies and measures for cybersecurity, risk management, virtual asset protection, and internal control within the business to prevent loss and theft.”
Offshore territory that captivates crypto business
The Cayman Islands are the British overseas territory consisting of three islands in the Western Caribbean. There are also many foreign exchange and the difference (CFDS) broker contracts that perform offshore operations from there.
The island initially implemented the Virtual Asset (Service Provider) Act (VASP Act) in 2020. However, the main purpose of the law was to establish money laundering anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
According to Thebanks.eu, 17 VASPs are currently registered in the Cayman Islands and are overseen by CIMA. These companies include major retail and institutional names such as BlockChain.com, Crypto.com, and B2C2.
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