Response to Virtual Asset (Service Provider) Act Amendment Bill and Regulations

On 3 April, XReg Consulting, The Cayman Islands Virtual Assets Society and the Blockchain Association of the Cayman Islands submitted a joint response to the Cayman Island’s Ministry for Financial Services (MFS) consultation for amendments to the Virtual Asset (Service Provider) Act (VASP Act). We recommend:

• the removal of the registration requirements for virtual asset issuers. Instead, an initial stage includes due diligence requirements for directors, beneficial owners and notification requirements when an issuance has taken place.
• the exclusive regulation of tokenised securities under the Securities Investment Business Act.
• the regulation of virtual asset derivatives under the VASP Act.

For a detailed look at the response and recommendations, download a report of our submission.