Topic: virtual assets

Speakers at the inaugural Cayman Crypto Week highlighted the jurisdiction’s regulatory advantage but cautioned that further changes are likely.

From diamonds and condos to crypto currency and digital tokens, the ways and means to move dirty cash around the global financial system are becoming more diverse and complex every day. For Cayman Islands law enforcement, adapting to those threats is an evolving challenge.

Nexo Capital Inc is appealing the rejection by the Cayman Islands Monetary Authority of the crypto lender’s application for a virtual asset service provider licence.

Digital asset-focused financial institution HAYVN is launching its HAYVN 20 Cryptocurrency Index Fund.

Financial services minister André Ebanks has made some frosty remarks about the digital asset industry, which is currently suffering from a ‘crypto winter’ of falling prices, suggesting the sector is clamouring for regulation.

A public consultation by the Cayman Islands Monetary Authority on draft rules and guidance for the provision of services by custodians and trading platforms for virtual assets ended on 7 March.

Cayman’s regulatory framework for service providers in the virtual asset space entered into force on 31 Oct. with the first of two phases.

Virtual assets have experienced an explosion in growth, in part due to the meteoric rise of initial coin offerings (ICOs) in 2017. While only small number have succeeded to become longer term prospects, many are trickling down onto the client books of liquidators.

Planned changes to the Companies Law will introduce a new restructuring officer regime.

Lawmakers this week passed a package of five bills to regulate virtual asset service providers. The Virtual Asset Service Provider Law, the central piece of legislation in the regulatory framework, demands that digital asset businesses must be registered with the Cayman Islands Monetary Authority.