Cayman Islands implements licensing rules for crypto firms

The British overseas territory Cayman Islands has implemented the license obligation for guard and negotiation platforms of cryptography, from April 1.

As of April 1, the Virtual Asset Regulations updated (Service Suppliers) (amendment), 2025 require The fact that all companies providing childcare and trading for digital assets must obtain a license, Cayman Islands Monetary Authority will supervise regulated companies. Existing providers must request the license within 90 days, requests detailing their cybersecurity, risk management and safeguard protocols.

In their applications, cryptographic guards must also indicate “the types and quantities of virtual assets” they will hold and the reasons for their guard. Regarding trading platform operators, they must state their expected income and indicate the location of the equipment that supports their operations. This marks a central change for the operation of cryptographic companies in the Cayman Islands, which historically had an open regulatory regime.

The British territory abroad initially implemented the Vasp law in 2020, forcing the basin vanks or registered with Cima. However, the main reason to put this law in place was not necessarily to regulate the cryptography industry himself. Rather, it has been designed to prevent money laundering and the financing of terrorism. Now, with the new aforementioned regulation in force on April 1, this extends to cryptographic service providers.

To date, there are 17 companies in the Cayman Islands that are recorded as a vasque, including the big names like Crypto.com and blockchain.com.