VASP Act: Virtual Asset (Service Providers) Act (2024 Revision)
The Virtual Asset (Service Providers) Act (2024 Revision), originally Law 14 of 2020, is the Cayman Islands' virtual asset law enforced by CIMA. It governs registration for virtual asset issuers, the virtual asset service licence for custodians and trading platforms, and a regulatory sandbox licence for innovative services.
At a glance
| Official title | Virtual Asset (Service Providers) Act (2024 Revision)1 |
|---|---|
| English title | Virtual Asset (Service Providers) Act (2024 Revision) |
| Citation | Law 14 of 2020 (2024 Revision) |
| Jurisdiction | Cayman Islands |
| Type | act |
| Adopted | 2020-05-20 |
| Status | in force |
Full text
Official full text: Virtual Asset (Service Providers) Act (2024 Revision) (PDF, en)1 · 1,260 KB · file checked 2026-09-24 · consolidated version of 2023-12-31
Official page: legislation.gov.ky2
Summary
The Virtual Asset (Service Providers) Act (2024 Revision) is the Cayman Islands' framework for virtual asset business, administered by the Cayman Islands Monetary Authority. It requires anyone carrying on virtual asset service in or from the Islands to be a registered person, hold a virtual asset service licence (for custody services or operating a trading platform), hold a waiver, or hold a sandbox licence. Registered persons handle virtual asset issuance under lighter oversight; virtual asset service licensees face fuller requirements for custody and trading-platform operations. Part 3 creates a regulatory sandbox licence for innovative products/services tested under modified requirements. The Act sets application criteria (fit-and-proper senior officers and beneficial owners, AML compliance, fees), issuance-approval powers over virtual asset offerings, and offences: including unlicensed activity and custody-safeguard breaches (fine of $100,000 on conviction for a custody breach).
Summary written by the Atlas from the official text; the law itself prevails.
Main articles
- s.4: No one may carry on virtual asset service without being registered, licensed, waived, or sandbox-licensed.
- s.6: Application for registration as a registered person (lighter-touch, e.g. virtual asset issuance).
- s.8: Application for a virtual asset service licence, required for custody services or trading platforms.
- s.10: Requirements for virtual asset custody services; breach is an offence with a $100,000 fine.
- s.17-19: Part 3 creates the sandbox licence for testing innovative virtual asset services.
- s.22-23: Authority's criteria for approving applications and virtual asset issuance requests, including fit-and-proper checks.
Licences it governs
Regulators that apply it
Upcoming changes
- 2024: Virtual Asset (Service Providers) (Amendment) Act, 2024 (Act 22 of 2024) amends the principal Act; not yet reflected in the 2024 Revision consolidated text reviewed.3
Sources
- cima.ky: VirtualAssetServiceProvidersAct2024Revision 1716397271 (PDF) · retrieved 2026-09-24
- legislation.gov.ky · retrieved 2026-09-24
- legislation.gov.ky: VirtualAssetServiceProvidersAmendmentAct2024Act22of2024 (PDF) · retrieved 2026-09-24
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