Virtual Asset (Service Providers) (Amendment) Act, 2024
Summary
An amendment establishing mandatory licensing for custodians/trading platforms, introducing independent director requirements, and expanding CIMA's enforcement powers.
Sources
Virtual_Asset_(Service_Providers)_(Amendment)_Act_2024.pdf
Last Updated
2026-04-28
The Virtual Asset (Service Providers) (Amendment) Act, 2024 introduces several critical updates to the virtual-asset-service-providers-act-2024 to strengthen the regulatory oversight of the virtual asset sector.
Enhanced Governance and Licensing
- Mandatory Licensing: The Act clarifies that any supervised person wishing to carry on virtual asset custody services or operate a virtual asset trading platform shall apply for a license.
- Independent Directors: It establishes a mandatory governance requirement that VASPs must have no less than three directors at all times, including at least one independent director (a director without a vested interest in the VASP).
Expanded Enforcement and Auditor Duties
- Warranted Entry and Search: The amendment grants cima the power to apply to a magistrate for a warrant to enter and search premises. This includes the power to search electronic devices, platforms, or computers if there are reasonable grounds to believe an offence has been committed under the VASP Act, the proceeds-of-crime-act-2024, the anti-money-laundering-regulations-2025, or the Beneficial Ownership Transparency Act.
- Auditor Reporting: It expands the statutory duties of a VASP's auditor, requiring them to immediately report to CIMA if they have information that the VASP is carrying on business in a fraudulent or criminal manner.
Administrative Updates
- The Act formally codifies that all prescribed fees under the VASP Act are non-refundable.