Key Information:
- The Cayman Islands will implement new regulations requiring crypto custody and trading companies to obtain licenses effective April 1, 2025.
- Firms currently operating in the region must submit applications by June 29, 2025, outlining their asset security measures and operational details.
- Notable companies like Coinbase, Binance, and Bitwise have already secured licenses in the Cayman Islands, with some, including Sui Foundation, establishing their headquarters there.
The Cayman Islands, an autonomous British Overseas Territory in the Caribbean known for its welcoming regulatory framework for crypto, is now mandating that companies offering custody and trading services secure the necessary licenses to operate.
According to the updated Virtual Asset (Service Providers) (Amendment) Regulations, the licensing requirement will activate on April 1, 2025, demanding that existing operations in the territory submit their applications by June 29, 2025.
License applications will need to detail the types and volumes of cryptocurrencies held for clients, along with security measures for safeguarding these assets. Additionally, trading platforms must disclose their projected revenue and the physical locations of their operational hardware, together with protocol for asset security.
This regulatory update follows earlier rules established in 2021, aimed at solidifying the Cayman Islands’ standing as a hub for crypto ventures.
