The Act, in effect since May 2020, requires registration with the Cayman Islands Monetary Authority (CIMA) for virtual asset services. The Ministry proposes amendments to facilitate licensing for virtual asset trading platforms and custodians, aiming for effective supervision.

The consultation welcomes public input through GitHub until 3 April 2024. Proposed changes include simplifying fee structures, clarifying definitions, and aligning with global standards. The amendments aim to enhance regulatory clarity and oversight in the virtual asset sector.

The proposed changes not only aim to streamline the licensing process for virtual asset trading platforms and custodians but also seek to ensure that regulatory requirements align with global standards, particularly in combating money laundering and terrorist financing. This proactive approach reflects the Cayman Islands' commitment to fostering a robust and transparent regulatory environment for virtual asset services, thereby enhancing investor confidence and safeguarding against illicit activities.

Cayman Islands Ministry of Financial Services and Commerce news release can be found here and the consultation here.