The Cayman Islands Ministry of Financial Services has presented a package of regulations aimed at creating a legal framework for Virtual Asset Service Providers (VASP).
The new rules are aimed at bringing company regulation in this country in line with the requirements of the Financial Action Task Force (FATF) on money laundering. The organization is currently assessing the efforts of the Cayman authorities.
As part of the first phase, which started on October 31, the AML / CFT compliance regulations will come into effect. All VASPs represented or planning to do so in this jurisdiction are required to register with the Cayman Islands Monetary Authority and follow these rules.
The second phase, which will be launched in June, involves the implementation of licensing requirements and prudential supervision of VASP activities.
The 2020 Amended Virtual Assets Bill, which will streamline the implementation of the new rules, will be presented at the next session of the Cayman Islands Legislature.