Updated Cayman VASPs Regulatory Framework Guidelines

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Stuarts Humphries

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Stuarts is a leading offshore law firm in the Cayman Islands specialising in investment funds and offering fully integrated corporate and commercial advice from a team of experienced, award-winning attorneys. Whether it's navigating the complexities of Fintech, cryptoassets, real estate, investment funds, M&A's, regulatory, banking, company incorporation, dispute resolution, immigration, or any other business challenge, Stuarts have the expertise and experience to guide you toward success. At Stuarts, our team are known for world-class responsiveness, efficiency, and cost-effectiveness; working closely with clients from around the world to solve their most complex business challenges, transactions and obligations. Our proven track record in advising leading international law firms, investment managers, investment companies and high-net-worth individuals is a result of the deep understanding of our markets and our clients’ needs.
On 15 May, 2024, the Cayman Islands Monetary Authority ("CIMA") released its regulatory policy setting out criteria for approving the registration of virtual...
Cayman Islands Corporate/Commercial Law
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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.

Originally published 30 May 2024

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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