Cayman Islands Mandates Licenses for Crypto Custody and Trading Firms
The Cayman Islands will require companies offering custody and trading services in cryptocurrency to obtain a license starting April 1, 2025. Existing firms must apply by June 29, 2025.
- Firms must disclose types and amounts of crypto held for clients.
- Custodians must justify secure storage methods.
- Trading platforms need to reveal expected revenue and hardware locations.
- Safety measures for assets must be disclosed.
The initial regulations for virtual asset service providers (VASPs) were implemented in 2021, aimed at attracting crypto businesses. Notable firms like Coinbase, Binance, and Bitwise have since obtained licenses, with some establishing headquarters in the region, including Sui Foundation.