Cayman Islands Updates Cryptocurrency Regulations With New Licensing Rules

According to Foresight News, the Cayman Islands has revised its cryptocurrency regulatory framework, with new licensing rules set to take effect on April 1, 2025. Under the 2025 Virtual Assets (Service Providers) (Amendment) Regulations, all entities offering virtual asset custody and trading platform services must obtain a license from the Cayman Islands Monetary Authority (CIMA). Existing virtual asset service providers (VASPs) are required to submit their license applications within 90 days after the effective date. As part of the application process, cryptocurrency custodians must disclose the types and quantities of virtual assets they intend to hold for clients. Additionally, trading platform operators are required to provide detailed information regarding expected revenue and the physical location of their hardware.