VASP Registration/Notification Requirements (2020-10-30)

Summary

This is a CIMA supervisory circular dated 30 October 2020 announcing the opening of registration and notification for entities providing virtual asset services under the newly commenced Virtual Asset (Service Providers) Law, 2020 (VASP Law). It explains that the VASP regulatory framework is being rolled out in two phases: phase one covers AML/CFT registration or notification, while phase two (not yet in effect) will introduce licensing and virtual asset issuance approvals.

Entities Covered and Process

New Market Entrants: Those wishing to start virtual asset services; must register with the Authority.
Pre-Existing Service Providers: Those already offering such services before the law commenced; must register with the Authority.
Other Authorized Entities: Existing CIMA licensees/registrants under other laws that also provide or propose to provide virtual asset services; need only notify the Authority.

Both processes are completed through the same VASP Application Form on CIMA's REEFS online platform, alongside a required AML/CFT form.

Timing, Fees and Penalties

Application window: Opened 31 October 2020, with CIMA encouraging submissions by 12 December 2020 so that registrations/notifications can be finalized before 1 February 2021.
Breach risk: Entities operating without having registered or notified by 31 January 2021 will be in breach of the VASP Law and may face penalties, including a directive to cease providing virtual asset services.
Fees: A KYD 1,000 assessment fee accompanies each registration application, with a further fee payable on approval.

The circular also reminds VASPs that they remain subject to AML/CFT/CPF and sanctions obligations under existing AML Regulations and CIMA's VASP Guidance Notes, and that a forthcoming Statement of Principles will further guide conduct pending full development of the VASP framework.

Key obligations

New Market Entrants and Pre-Existing Service Providers must register with the Authority by completing the VASP Application Form via the REEFS platform before providing virtual asset services.
Other Authorized Entities (existing CIMA licensees/registrants also providing virtual asset services) must notify the Authority via the same VASP Application Form on REEFS.
All applicants (registrants and notifying entities) must also complete an AML/CFT form on the REEFS platform.
Entities must be registered or have notified the Authority by 31 January 2021 to continue providing virtual asset services; otherwise they must cease providing such services from 1 February 2021.
Entities not currently providing virtual asset services as of 31 October 2020 may not begin doing so until their registration application is approved or the required notification is made.
Registration applications must be accompanied by a KYD 1,000.00 assessment fee payable via REEFS.
All entities providing virtual asset services must comply with AML/CFT/CPF and Sanctions obligations under the Anti-Money Laundering Regulations (2020 Revision) and the Authority's VASP Guidance Notes (Amendment No. 5), and will be subject to a forthcoming Statement of Principles.

Applies to

Virtual asset service providers (VASPs), New Market Entrants, Pre-Existing Service Providers, Other Authorized Entities (existing CIMA licensees/registrants providing virtual asset services), virtual asset custodians, virtual asset trading platforms, virtual asset issuers, virtual asset dealers

Deadlines

31 October 2020: VASP Law commences and the VASP Application Form window opens on the REEFS platform for registration or notification.
12 December 2020: Authority encourages applications/notifications to be submitted by this date to ensure completion before 1 February 2021.
31 January 2021: Deadline by which entities must be registered or have notified the Authority to continue lawfully providing virtual asset services.
1 February 2021: Entities engaging in virtual asset services on or after this date without registration or notification will be in breach of the VASP Law and subject to penalties/enforcement, including cease-and-desist action.