- Crypto.com acquired conditional VASP approval from the Cayman Islands Financial Authority on January fifth.
- The Cayman Islands has tightened rules on cryptocurrencies, requiring licensing for buying and selling and custody platforms.
- Business consultants say the big exchanges searching for licenses are an indication of confidence within the Cayman framework.
A cryptocurrency alternate is nearing full regulatory approval within the Cayman Islands, highlighting the area’s rising position in world digital asset regulation.
On January 5, Crypto.com introduced that it had acquired conditional approval for a Digital Asset Service Supplier (VASP) license from the Cayman Islands Financial Authority. Crypto.com stated it at present serves greater than 150 million customers worldwide.
Cayman Islands tightens cryptocurrency guidelines
The Cayman Islands has steadily raised its regulatory requirements for digital asset firms. Earlier guidelines required registration, however latest updates now require buying and selling platforms and custodial companies to carry formal licenses because of the increased dangers.
Regulators say the adjustments are aimed toward growing oversight whereas enabling innovation throughout the business.
Business response
Authorized consultants welcomed the transfer, saying it was an indication of confidence within the Cayman Islands’ regulatory framework. Michael Basina, co-founder of NXT Regulation and vp of the Cayman Islands Blockchain Affiliation, stated main exchanges searching for licenses show a long-term dedication to working underneath clear guidelines.
Parallel CEO and co-founder Laura Birrell echoed comparable sentiments, saying, “The way forward for actual property is digital, and the Cayman Islands is the place that future is already unfolding.”
A part of broader regulatory tightening
The Cayman Islands approval provides to Crypto.com’s increasing record of regulatory approvals throughout main markets. The corporate has secured approvals or registrations in territories together with the European Union, United Kingdom, Canada, Singapore, Hong Kong, United Arab Emirates, Australia and several other different jurisdictions.
Crypto.com stated its broad regulatory scope permits it to function throughout a number of markets primarily based on native guidelines, as governments proceed to extend oversight of crypto platforms.
Is the Cayman Islands on its method to changing into a worldwide crypto hub?
Jamie Roberts, senior adviser to the Cayman Islands’ Web3 and Digital Property Undertaking, stated the jurisdiction could also be small, however its credibility is low.
One of many grounds for this attraction lies within the Cayman Basis Firm, which is a authorized entity with no homeowners or shareholders. That is particularly helpful for decentralized tasks that require authorized entities with out conventional administration. Roberts stated his agency alone has helped set up greater than 400 such entities, out of a complete of about 1,200 firms.
As a British Abroad Territory, Cayman doesn’t have direct entry to the UK or EU markets, however Cayman is acknowledged by world regulators and is taken into account a protected and well-regulated jurisdiction. This makes it a well-liked alternative for crypto firms and decentralized organizations to launch or relocate their operations.
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