On April 28, the Cayman Islands Legislative Assembly released five new laws for cryptocurrency companiesespecially exchange.
How the new legislation would change the Cayman Islands cryptocurrency industry
The draft law for Virtual Asset Service Providers (VASP) defines definitions and registration requirements for companies that provide crypto services, including exchanges, custodians and decentralized financial operators. Accompanying this bill, changes to other financial laws for stock exchanges and stock markets are in effect.
A provision in the VASP invoice is the sandbox license. These licenses would enable companies to work on technologies that pose risks.Sign up for one-year licenses, including anti-money laundering requirements, to test your models.
In the press release attached to the legislation, the proposed system is described as “a flexible basis for the use of new technologies and innovative companies”.. Continuation:
“The proposed framework includes relevant anti-money laundering, anti-terrorist and anti-proliferation (AML / CFT / CPF) recommendations adopted by the Financial Action Task Force International (FATF) in 2019”.
FATF travel rules and tax haven islands
The Cayman Islands are known for their leniency when registering companies. The European Union has put the country on the black list of tax havens. In fact, the islands are one of the names that turn out to be the potential home of the Binance Migration Register.
The current legislation has only been published in the Official Journal and must wait for the next legislative assembly meeting. Given the global transition to the FATF travel rule and the establishment of traditional banking requirements For cryptocurrency companies, the Cayman Islands are likely to have to change something about their current system.
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