Further to the commencement order that brought the Virtual Asset (Service Providers) Law, 2020 (“the VASP Law”) into effect, the Cayman Islands Monetary Authority (“the Authority”) announces the opening of registration or notification for entities wishing to provide virtual asset services with effect from 31 October 2020.
The regulatory framework for the VASP Law will be implemented in two phases. Phase one will focus on anti-money laundering (“AML”) and countering the financing of terrorism (“CFT”) compliance, supervision and enforcement, and other key areas of risk. Under phase one, entities engaged in or wishing to engage in virtual asset services must be registered with the Authority under the VASP Law. Entities engaged in or wishing to engage in virtual asset services, already subject to the Authority’s supervision under another regulatory law, must notify (in the case of licensees) or register with (in the case of registrants) the Authority under the VASP Law. Phase two will include a licensing and virtual asset issuance approval process that will begin when the appropriate clauses and aspects of the VASP Law come into effect.
Phase one (registration or notification) targets three groups:
Registration or notification can be done through the VASP Application Form on the Authority’s Regulatory Enhanced Electronic Forms Submission (REEFS) online platform. As part of the registration or notification process, entities will also be required to complete an AML/CFT form which will also be available on the Authority’s REEFS platform. For further details, see supervisory circular or The Anchor.