VASP Registration Update and Regulatory Developments (2022-02-04)

Summary

This is an informational notice from CIMA providing an update on the Virtual Asset Service Provider (VASP) registration process under the Virtual Asset (Service Providers) Act, 2020. It highlights that CIMA will continuously publish on its website the names and status of entities approved for registration under the VASP Act.

The bulk of the notice describes common deficiencies CIMA has observed in VASP registration applications, and encourages applicants to submit complete, high-quality applications to avoid processing delays.

• Incomplete applications: Applications submitted without all required elements.
• Insufficient information: Applications lacking adequate detail to support the registration request.
• Inconsistent supporting documentation: Supporting documents that do not align or are inconsistent with each other.

The notice also announces that CIMA has published, for private sector consultation, the Rule and Statement of Guidance for the provision of virtual asset services applicable to Virtual Asset Custodians and Virtual Asset Trading Platforms, describing this as an important milestone in the second phase of the VASP regime. No specific consultation deadline or effective date is given in the text.

This notice is primarily informational and procedural guidance rather than a binding instrument; it does not itself impose new legal obligations beyond reiterating that applications will not be processed until complete. It points applicants to CIMA's REEFS system for guidance and to vaspinfo@cima.ky for further information.

Key obligations

• Applicants for VASP registration must submit complete applications, including all relevant fields, due diligence materials on directors, shareholders and beneficial owners, a sufficient business plan, full organizational/group structure details, and adequate AML/CFT/CPF and cybersecurity policies, as an application will not be processed until it is complete.

Applies to

Virtual Asset Service Providers (VASPs), virtual asset custodians, virtual asset trading platforms, prospective VASP registration applicants