The Kayman Islands now require the license of nursery companies and trading in encryption

The Kayman Islands, a British area abroad in the Caribbean Sea region that has attracted many encryption companies over the past few years thanks to its friendly organizational structure, now requires companies that provide custody and trading services to obtain a license.

According to the country Announced virtual asset regulations (service providers) (amendment)The new law law will be valid on April 1, 2025, and companies that are already operating in the country will be required to submit their application before June 29, 2025.

The submission process requires a guardian to detect the types and amount of encryption they plan to keep on behalf of their customers in addition to providing justification for ensuring the safe storage of these cryptocurrencies, among other things.

On the other hand, trading platforms will have to give an insightful look at their expected revenues and the actual location of their operating devices as well as revealing how to ensure the safety of these assets.

The Kayman Island Rules Group for Virtual Asset Services Providers (VASPS) It entered into force in 2021. The frame is then designed to “enhance” the government’s ability to draw new entities.

Since then, many small and large coding companies have obtained licenses in the country, including Coinbase, Binance and BitWise. Others have even opened a major headquarters in the region, such as the Sui Foundation.