Virtual Asset (Service Providers) Regulations, 2020 (SL 138 of 2020)

Summary

These Regulations were made under the Virtual Asset (Service Providers) Law, 2020 and set out the practical mechanics for registering as a virtual asset service provider (VASP) in the Cayman Islands.

• Public sale criteria: Give the Cayman Islands Monetary Authority (the Authority) criteria for deciding whether a sale of newly created virtual assets counts as a sale 'to the public' from within the Islands, looking at advertising, use of third-party facilitators, and whether a sale is a limited private placement.
• Application form: Require applicants for registration to use a prescribed application form.
• Fees: Set out the fees payable for registration applications, issuance-related applications, and annual renewals.

The document applies to persons and entities seeking to provide virtual asset services or to issue virtual assets in or from the Cayman Islands, including those already licensed or registered under another regulatory law who need to register under the VASP regime.

• Schedule 1: A detailed application form covering corporate/ownership information, directors, senior officers, shareholders, AML officers (MLRO, DMLRO, AMLCO), the nature of the virtual asset service, AML/CFT procedures, and a signed declaration by two senior officers.
• Schedule 2: A tiered fee structure (assessment fees, application fees, and annual renewal fees) that varies depending on whether the applicant is issuing virtual assets or providing other virtual asset services, the amount raised or revenue generated, and whether the target market is inside or outside the Islands.

Overall, this is a technical/administrative regulation implementing the registration and fee framework under the parent Law rather than substantive AML or prudential rules; it does not itself state a general commencement or transition deadline in the extracted text.

Key obligations

• An application for registration under section 6(1) of the Law must be made to the Authority using the form set out in Schedule 1.
• Applicants must pay the fees set out in Schedule 2 for registration, issuance-related applications, and annual renewals, with amounts depending on category (issuer vs. other VAS provider), revenue/amount raised, and whether services are offered within or outside the Islands.
• The Schedule 1 application form must be completed in full, including applicant details, directors/principals, senior officers, shareholders/beneficial owners, and AML Compliance Officer/MLRO/DMLRO details, and submitted with a declaration signed by two senior officers confirming accuracy and understanding of the Law and AML Regulations.
• Registered persons engaging in issuance of virtual assets or providing other virtual asset services must pay an annual renewal fee, assessed by the Authority based on the prior year's revenue and type/delivery method of service.

Applies to

virtual asset service providers, persons issuing virtual assets, applicants for registration under the Virtual Asset (Service Providers) Law, existing licensees or persons registered under another regulatory Law seeking VASP registration

Related documents

• Virtual Asset (Service Providers) (Amendment) Regulations, 2025 (SL 19 of 2025) amends this document