British Overseas Territory Cayman Islands has implemented a licensing requirement for effective crypto detention and trading platforms from 1 April.
By 1 April, updated virtual asset (service provider) (Amendment) Regulations, 2025 require All firms providing detention and trading services for digital assets must obtain a license, the Cayman Islands will oversee the monetary authority regulated firms. Existing providers will have to apply for a license within 90 days, in which applications details their cyber security, risk management and safety protocols.
In its applications, Crypto Custodians will also have to tell “the type and volume of virtual assets”, which they will do for the reasons and reasons for their custody. For trading platform operators, they have to explain their expected revenue and also indicate the location of the hardware that supports their operation. This is a significant change for the operation of crypto firms in the Cayman Islands, which had historically open regulatory rule.
The British Overseas region initially implemented the VASP Act in 2020, which requires Vasps to license or register with CIMA. However, the main reason for giving place to this law was not necessary to regulate the Crypto industry itself. Rather, it was mainly designed to prevent money laundering and financing of terrorism. Now, with new, aforesaid regulation on 1 April, it extends to the Crypto service providers.
So far, the Cayman islands have 17 companies registered as Vasps, including large names such as Crypto.com and Blockchain.com.
