VASP permission in Caymans

Published:

June 16, 2023

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The request process for a VASP license or enrollment can take several months.

Here are some of the benefits of acquiring a VASP license or enrollment in the Caymans:

Legitimacy: Operating as a permitted or enrolled VASP supplies your business with a level of legitimacy that may not be available to unlicensed or unregistered VASPs.
Access to markets: A VASP permission or enrollment may give you access to new markets and customers.
Compliance: A VASP permission or enrollment will help you to comply with Cayman’s AML/CFT adjustments.

VASP license regulation in the Cayman Islands

The management of a VASP permission in the Caymans inclusive the next:

Issuance of the license: The Caymans Monetary Body (CIMA) is responsible for issuing VASP licenses. CIMA will review the request and conduct an on-site assessment of the VASP before issuing a license.
Renewal of the permission: VASP licenses are valid for one year and must be renewed annually.
Implementation: CIMA is responsible for enforcing the Caymans VASP Act, 2020 and the adjustments promulgated thereunder. CIMA may take imposition step against VASPs that violate the law, including fines, suspension or revocation of the permit, and criminal prosecution.

The management of a VASP permission in the Cayman Islands is a complex and demanding task. The administrator or manager of a VASP license must be knowledgeable about the law, committed to conformity, and able to manage the day-to-day operations of the VASP.

Demands for a license

The Cayman Islands Monetary Body (CIMA) regulates Virtual Asset Favors Suppliers (VASPs) in the Caymans. To acquire a VASP permission in the Cayman Islands, you must meet the following demands:

Be incorporated in the Caymans.
Have a physical presence in the Caymans.
Have a fit and proper management team.
Have adequate AML/CFT controls in place.
Pay the applicable request and annual fees.
The VASP authorization request process can take several months.

Further we offer more detailed explanation of each of the requirements:

Incorporation or enrollment in the Caymans: You must be incorporated or enrolled in the Caymans as a firm limited by shares or a limited liability firm.
Fit and proper management team: The management team of your VASP must be fit and proper, meaning that they are not involved in any criminal activity and have the needed knowledge and expertise to run a VASP.
Adequate AML/CFT controls: You must have adequate AML/CFT controls in place to prevent money laundering and terrorist sponsoring. This includes things like client due thoroughnes , record-keeping, and reporting demands.
Remittance of applicable application and annual fees: You must pay the applicable request and annual fees to CIMA.
If you are considering using as a VASP in the Caymans, it is important to consult with an experienced attorney to discuss your specific circumstances.

Here are some of the benefits of obtaining a VASP license in the Caymans:

Are crypto exchanges regulated in Cayman Islands?

Yes, crypto exchanges are controlled in the Caymans. The adjustment of crypto exchanges and related actions falls under the Virtual Properties (Favors Suppliers) Act, 2020 VASPs in Cayman Islands (VASP Adjustments). The VASP Act establishes a substructure for the surveillance and adjustment of virtual acquisition favors suppliers (VASPs) in the jurisdiction.

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