New rules rolled out to regulate crypto assets

| 04/04/2025 | 21 Comments

(CNS): Phase 2 of the new regulatory framework for virtual asset services such as crypto-currencies in the Cayman Islands came into effect this week with the implementation of several new pieces of legislation. These important technical amendments and new rules are being phased in to give impacted stakeholders time to become compliant with the prudential measures that bring the jurisdiction in line with global regulatory standards.

Phase 1 introduced a registration requirement that focused on anti-money laundering and countering the financing of terrorism (AML/CFT) measures. Phase 2 introduces a licensing regime for trading platform operators and virtual asset custodians that focuses on introducing prudential measures for the provision of those services. A third phase will address the remaining elements of the regulatory framework.

The amended acts and regulations give the Cayman Islands Monetary Authority, the local regulator for virtual assets, more power to supervise virtual asset services and provide greater clarity for the sector in the jurisdiction.

The changes include the roll out of the following laws and regulations:

  • Virtual Asset (Service Providers) (Amendment) Act, 2024 (Commencement Order), 2025;
  • Virtual Asset (Service Providers) Act, 2020 (Commencement Order), 2025; and
  • Virtual Asset (Service Providers) (Amendment) Regulations, 2025.

Share your vote!


How do you feel after reading this?
32
  • Fascinated 26%
  • Happy 2269%
  • Sad 13%
  • Angry 413%
  • Bored 39%
  • Afraid 00%

Tags: ,

Category: Business, Financial Services, Politics, Private Sector Oversight

Comments (21)

Trackback URL | Comments RSS Feed

  1. Anonymous says:

    Great. Now do DAOs.

    Thought not.

  2. Anonymous says:

    Yes, we create the VASP but no one wants to look under the hood at Cayman Enterprise City where everyone is a “consultant” and CIMA turns a blind eye to all of the unregulated activities taking place in the shiny new campus.

    • Anonymous says:

      For years, Cayman has suffered the headline consequences of after-the-fact SEC indictments, arrests, and jailings. It’s either ineptitude or turning a blind eye, can’t be both.

  3. And on a mouse says:

    Really? At least tulip bulbs were real and produced something real that we could hold in our hands.

    All crypto does is waste mega electrical power. The most ingenious scam ever conceived.

    The 3 centuries of financial heartbreaks in Galbraith’s ‘A Short History of Financial Euphoria’ will look infantile compared the emperor’s clothing trickery of crypto.

    Lest any be impressed by crypto’s promotors,
    know that Gailbraith’s subtitle is
    ‘Financial Genius is Before the Fall.’

    7
    3
  4. Anonymous says:

    If this legislation was thoroughly reviewed by Kenny, Jay, JonJon, Isaac, Sabrina, Bernie, McKeeva, Heather, and Saunders, then I’m happy with whatever they think.

  5. Anonymous says:

    There’s a 90% discount on licensing fees for local companies (companies owned by Caymanians). Thought more people would be mentioning this!

  6. Anonymous says:

    I just wan be able to buy a plate of jerk chicken with ethereum, what’s so wrong about that? Serious question.

    • Anonymous says:

      the idea of a jerk vendor being set up to accept it, lolz.

      We only accept BobMarleyCoin,or BigUpCoin.

  7. Anonymous says:

    Crypto, an incredibly well organized get rich quick scam.

    12
    6
    • _||) says:

      It’s not a scam if your investment strategy is to buy high and sell low because you dumped your savings into an relatively volatile asset without having a clue on how to do market trending / technical analysis.

      After significant upticks, the media starts chatting about crypto, new comers like you throw money at it because you want a 50% ROI in 24 hours too, but you buy at peak and get left up shit creek without a paddle while the real investors used you as exit liquidity for their position(s).

      10
      • Anonymous says:

        Pump and dump. Total scam taking in millions of losers.

        5
        3
        • _||) says:

          Perhaps yes for alternative cryptocurrencies that are literally labeled “sh!tcoins” and go under names such as “c*mrocket” and promise you to 10x your money in a week..

          If you saw a “deal” like that for physical cash and invested into it I would call you a fool same way.

          Bitcoin has a 1.5 TRILLION dollar market cap. There is no scam-related “pump and dump” going on it in outside of whales swinging it when the time is right, ie exiting your position by selling off at high RSI right when news breaks that trump is introducing tariffs.

          Stop hating the game when it’s you, the player.

          2
          1
          • Anonymous says:

            JD, you make valid points, and I do believe it’s not a scam. However, the price manipulation that’s happening by CEXs, namely Binance (Cayman Islands registered) through Wintermute (Singapore registered) does not help with the reputation of crypto in general and the Cayman Islands as jurisdiction. The more regulation that is enacted to help stop this manipulation, the better for everyone. While things like this continue to happen, there is merit in thinking it could be a scam for the nee market entrants.

            2
            2
            • Anonymous says:

              ” the price manipulation that’s happening by CEXs, namely Binance ”

              my friend, you have entered “the world is actually flat” territory

  8. Anonymous says:

    Crypto Currency & Bitcoin

    What baffles me most is why our leaders and financial experts the Cayman Islands is pushing so hard to introduce Crypto Currency and Bitcoin in the Cayman Islands and slowly phase out the traditional banking systems

    Yes i understand that while both of these virtual assests Crypto n Bitcoun both have modern accounting, tracking and monitoring computer systems that can be accessed and used on the internet online from anywhere

    But Both of these Crypto n Bitcoin Funds lack the following by the current Treasury Department infrastructure and do not have:

    • Federal Insurance

    • Monitoring for AML, CTF & Fraud

    • Internal & External Investigative Resources

    In other words, once Fraud or Theft occurs and your Bitcoin or Crypto money is lost or stolen, there is no way and guarantee for the fraud or theft to be investgated and the money replaced. Once the money is lost, its lost

    In-addition to this, the Fraud, AML & CTF Monitoring that is constantly FREE OF CHARGE for current investigative checks carried out by the Treasury Department that protects Traditional Bank Account Holders with security and a peace of mind, will become the onous of the business owner or Crypto Currency n Bitcoin account holder to conduct and carry out there own AML, Fraud & CTF Monitoring and Investigative Checks

    Bitcion, the end of money as we know it

    https://youtu.be/BFKZoq2z39s

    Bitcion, the rise and rise of Bitcion

    https://youtu.be/A06qdTpOYcg?si=S_yzHy1pvGHIVv6W

    These are two very interesting documentaries and youtube videos that explain a lot of things including a Treasury Department Interview on the documentary highlighting the major difference between Virtual Assets or Funds like Crypto n Bitcoun vs Traditional Banking Systems

    Besides that, the World Bank and the IMF is not just going to roll over and Write Off all of the loans or Shut Down there Traditional way of Banking just because a more modern transparent accounting way of doing business have come along

    https://www.dollarsandsense.org/archives/2023/0323breger-bush.html

    Therefor, the delousional state of mind that our leaders and financial experts are in and trying to mislead our people hoping to completely remove the Treasury Department Watch Dog from monitoring AML, CTF & Fraudulent activity are something that everyone need to be aware of

    1
    2
    • Anonymous says:

      Who said anything about trying to slowly phase out the traditional banking systems

      This is not specifically aimed at the local domestic market, although we all know that the local banks are decades behind in their infrastructure and thinking

      When we get asked to recommend a local bank to a client I’m not able to single out a single good bank, they are all dreadful

  9. StopTheCrime says:

    This should have been completed YEARS ago! Cayman is regrettably so far behind the rest of the world when it comes to cryptocurrency.

  10. Chris Johnson says:

    Why has it taken so long for the CIG to do this.

  11. Anonymous says:

    President Xi coming for the crypto bros.

    8
    1

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.