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 statute, enforced by CIMA. It sets registration for virtual asset issuers, a virtual asset service licence covering custodians and trading platforms, and a sandbox licence for services still being tested.
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, run by the Cayman Islands Monetary Authority. Anyone carrying on virtual asset service in or from the Islands must be a registered person, hold a virtual asset service licence (for custody services or a trading platform), hold a waiver, or hold a sandbox licence. Registered persons handle virtual asset issuance under lighter oversight, while service licensees face the fuller regime for custody and trading-platform work. Part 3 sets up a regulatory sandbox licence for innovative products and services tested under modified requirements. Applicants must satisfy fit-and-proper checks on senior officers and beneficial owners, meet AML rules and pay fees, and the Authority separately approves individual virtual asset offerings. A custody-safeguard breach, like unlicensed activity, is an offence, carrying a fine of $100,000 on conviction.
Summary written by the Atlas from the official text; the law itself prevails.
Main articles
- s.4: One of four routes is mandatory before carrying on virtual asset service: registration, a licence, a waiver, or a sandbox licence.
- s.6: Sets out how to apply for registered-person status, the lighter-touch route that covers activity such as virtual asset issuance.
- s.8: A custody business or a trading platform needs the fuller virtual asset service licence, applied for under this section.
- s.10: Sets the standard for virtual asset custody. Breach it, and the fine on conviction runs to $100,000.
- s.17-19: Part 3 is the sandbox: a licence for testing innovative virtual asset services under relaxed conditions.
- s.22-23: Lays out what the Authority checks before approving an application or an issuance request, fit-and-proper standards included.
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
- Virtual Asset (Service Providers) Act (2024 Revision) · retrieved 2026-09-24
- legislation.gov.ky · retrieved 2026-09-24
- legislation.gov.ky (PDF) · retrieved 2026-09-24
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