Cayman Islands introduces new сrypto regulation rules
Cayman Islands mandates licensing for all crypto firms under new regulations.
The Cayman Islands has implemented a sweeping new regulatory framework that mandates licensing for all virtual asset service providers (VASPs) operating within its jurisdiction.
Effective April 1, 2025, the updated Virtual Asset (Service Providers) (Amendment) Regulations require every crypto firm to obtain a license under the oversight of the Cayman Islands Monetary Authority (CIMA).
Existing operators must submit their license applications within 90 days, detailing the types and amounts of virtual assets they intend to hold, along with comprehensive cybersecurity, risk management, and safeguarding protocols. This initiative aims to enhance investor security and market transparency amid an increasingly volatile crypto environment.
Stricter Oversight Amid Evolving Financial Landscape
The regulatory update marks a fundamental shift in the Cayman Islands’ approach to digital asset governance. Initially introduced in 2020 under the Virtual Asset (Service Providers) Act to combat money laundering and terrorist financing, the new revisions now extend licensing to all crypto service providers, including custodians and trading platform operators.
These firms are required to disclose their expected revenues, the physical locations of their hardware, and detailed business proposals designed to mitigate financial crime. With 17 VASPs already registered—among them major players such as Blockchain.com, Crypto.com, and B2C2—the islands are positioning themselves as a premier offshore financial center known for stability and investment assurance.
A Strategic Move for a Crypto Hub
Historically celebrated for its open regulatory regime, the Cayman Islands has attracted numerous crypto firms and investors. By instituting stricter licensing requirements, CIMA aims to balance the twin goals of fostering innovation and ensuring orderly market operations.
The revamped framework is expected to reinforce the islands’ reputation as a safe haven for digital asset investments, while also addressing global concerns about crypto security. As the world’s crypto landscape continues to evolve, the Cayman Islands’ proactive measures may serve as a blueprint for other offshore jurisdictions seeking to maintain a competitive edge in financial services.
Recently we wrote, that Spanish financial giant Banco Bilbao Vizcaya Argentaria (BBVA) has received approval from Spain’s financial regulator to offer its clients the ability to trade bitcoin (BTC) and ether (ETH).
