VASP License -Custody & Trading
Mandatory license for VASPs providing custody or trading platform services under 2024 amendment framework.
Virtual Asset (Service Providers) (Amendment) Act 2024, effective April 1, 2025
Capital Required
Determined by CIMA based on risk profile; typically KYD 100,000-500,000
Timeline
4-10 months
Fees
KYD 5,000 application + KYD 30,000 license grant + KYD 15,000-40,000 annual
Regulatory Body
Cayman Islands Monetary Authority (CIMA)
Legislative Framework
Virtual Asset (Service Providers) Act 2020 (as amended 2024), Securities Investment Business Law, Mutual Funds Act
Last updated: June 2025
Key Requirements
Risk-based capital requirement determined by CIMA (typically KYD 100,000-500,000) based on service and customer base
Segregated custody infrastructure meeting CIMA standards with multi-signature wallets and verification
Comprehensive governance framework with board of directors, audit committee, and risk management policies
Chief Risk Officer and Chief Compliance Officer appointed with CIMA fit-and-proper approval
Comprehensive cybersecurity framework meeting CIMA standards including encryption and incident response
Professional indemnity and cyber liability insurance of minimum KYD 200,000-500,000 based on assessment
Detailed business continuity and disaster recovery plans tested annually with documentation
Enhanced AML/CFT procedures with enhanced due diligence for higher-risk customers
Application Process
Prepare comprehensive VASP Custody & Trading license application per 2024 Amendment Act requirements
Submit organizational governance structure, board composition, and management CVs with fit-and-proper assessments
Provide detailed custody/trading infrastructure documentation, security protocols, and segregation procedures
Submit comprehensive risk management framework, business continuity plan, and cybersecurity policies
CIMA initial assessment of risk profile and capital requirement determination
Final submission of regulatory documentation and capital adequacy verification with licensing decision
Expected Total Timeline
4-10 months
Ongoing Obligations
After obtaining your VASP License -Custody & Trading, these are the continuing compliance requirements you must maintain.
Quarterly capital adequacy reports and annual independent audit by CIMA-approved auditors
Monthly customer asset reconciliation statements with independent verification of segregation and audit
Annual cybersecurity audits including penetration testing and vulnerability assessments to CIMA
Annual fit-and-proper assessments for Chief Risk Officer and Chief Compliance Officer with updates
Quarterly compliance certifications regarding segregation maintenance, AML/CFT, and cybersecurity measures
Immediate notification to CIMA within 24 hours of material breaches, losses, or critical incidents
Cost Summary
Capital Requirement
Determined by CIMA based on risk profile; typically KYD 100,000-500,000
Application & Licensing Fees
KYD 5,000 application + KYD 30,000 license grant + KYD 15,000-40,000 annual
Jurisdiction Setup Cost
$40,000-$120,000
Annual: $30,000-$80,000
Other Cayman Islands Licenses
Explore other license types available in Cayman Islands.
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