Trading, nursery providers must obtain licenses – TradingView news

The Kayman Islands updated its regulatory system for encryption, as it provided new licensing rules through a legislative amendment. As of April 1, 2025, entities that provide asset nursery and virtual asset trade services in or from the Kayman Islands must obtain a license.

Imposing a license for all

The update in the encryption license has been clarified through the latest (service providers) regulations for virtual assets, 2025, which has already obtained approval from the countrymen. CIMA’s monetary authority will supervise the organization’s encryption companies.

Under the new rules, current virtual asset service providers (VASPS) who are already working in or from the islands must submit their licensing applications within 90 days from April 1, 2025.

Upon applying for a license, Crypto Custodians must inform the regulator of the “types and amounts of virtual assets” they propose on behalf of their customers and reasons for facilitating the preservation of these encrypted currencies, among several other things.

On the other hand, trading platform operators must refer to their expected revenues and the location of the physical devices for their operations. Along with other standard documents, these platforms must also provide “the outlines of the strategy, the measures in force for cybersecurity, risk management, protection of virtual assets and internal controls within the work to prevent loss and theft.”

An external area that attracts encryption work

The Cayman Islands is a British region outside consisting of three islands in the Western Caribbean. It is also home to many Forex and contracts for the CFDs running external operations from there.

The islands initially implemented the virtual assets law (service providers) (VASP Law) in 2020, which requires VASPS licensed or registered with CIMA. However, the primary purpose of this legislation was to create measures to fund control (AML) and terrorist financing (CTF).

According to Thebanks.eu, there are currently 17 VASPS registered in the Cayman Islands and supervised by CIMA. These companies include major division and institutional names such as Blockchain.com, Crypto.com and B2C2.