| Key Points: – Cayman Islands requires all crypto firms to obtain a VASP license by June 30. – VASPs must disclose asset holdings, revenue, and hardware locations for compliance. |
The updated rules, effective April 1, 2025, require all trading platforms and custody providers to secure a Cayman Islands Monetary Authority (CIMA) license within 90 days.
The Virtual Assets (Service Providers) (Amendment) Regulations 2025 expand upon previous anti-money laundering (AML) and counter-terrorist financing (CTF) measures, introducing stricter oversight for crypto businesses.
The new compliance push arrives amid a Bitcoin ($BTC) and Ethereum ($ETH) price decline. Historical trends suggest that regulatory announcements could trigger further volatility in the short term.
Blockchain.com, Crypto.com Must Secure VASP License Under New Law
Bitcoin.com News reported that the Cayman Islands is set to implement new cryptocurrency licensing regulations, with updated rules taking effect on April 1, 2025.
The Virtual Assets (Service Providers) (Amendment) Regulations 2025 will require all virtual asset custody providers and trading platforms to obtain a license from the Cayman Islands Monetary Authority (CIMA).
As part of the transition, existing Virtual Asset Service Providers (VASPs) operating in the Cayman Islands must submit their license applications within 90 days to ensure compliance.
According to TheBanks.eu, affected firms, including Blockchain.com, Crypto.com, and B2C2, must now adjust their operational strategies to meet these updated requirements.
Crypto custodians are required to disclose the types and amounts of virtual assets they intend to hold for clients, while trading platform operators must provide details on expected revenue and the location of their physical hardware.
Bitcoin.com News wrote in a blog post.
New Cayman Crypto Rules Arrive Amid Bitcoin and Ethereum Decline
This is not the first time the Cayman Islands has introduced new compliance measures for crypto service providers. In 2020, the country enacted the Virtual Asset (Service Providers) Act, focusing on anti-money laundering (AML) and counter-terrorist financing (CTF) measures.
The 2025 amendments expand upon this framework, introducing stricter oversight and a structured licensing system. Looking at past events, regulatory announcements have historically triggered short-term volatility in crypto markets.
A key example is China’s 2021 cryptocurrency ban, which caused an 8% drop in Bitcoin’s price, followed by a similar decline in Ethereum. Despite the immediate reaction, both assets eventually rebounded within months, reaching new all-time highs in early 2022.
As of March 10, 2025, Bitcoin ($BTC) is trading at $82,480, marking a 3.54% decline from the previous close. The trading range for the day has seen a high of $85,405 and a low of $80,063. Ethereum ($ETH) is currently priced at $2,092.76, reflecting a 3.21% decrease from the previous close. The day’s high reached $2,162.25, while the low touched $1,998.75.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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