November 21, 2019 3:30 pm

Virtual Asset Services Must Comply with Cayman Laws

The Cayman Islands is committed to implementing global AML/CFT standards set out by the FATF, including recommendations relating to the regulation and supervision of virtual assets and the provision of virtual asset services. Government is currently taking steps to prepare a legislative framework to enable compliance with these international measures relating to virtual asset service providers.

The public is however reminded that providing virtual asset service, as included in Schedule 6 of the Proceeds of Crime Law (as amended) (POCL), is an activity considered to be “relevant financial business” for the purposes of the Anti-Money Laundering Regulations, (2018 Revision) of the Cayman Islands (AMLRs).  Virtual asset service providers are therefore obligated to take preventative measures under the AMLRs, including customer due diligence.

Under the POCL, “virtual asset” means a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes.

Persons engaged in virtual asset services in or from within the Islands are therefore reminded that they are subject to, and are required to comply fully with, the provisions of the AMLRs and all other applicable laws.

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