Virtual Asset (Service Providers) Regulations, 2020
Regulations defining the registration framework and operational details for Virtual Asset Service Providers (VASPs).
Virtual_Asset_(Service_Providers)_Regulations, _2020.pdf
2026-04-28
The Virtual Asset (Service Providers) Regulations, 2020 provide the detailed operational framework for the implementation of the virtual-asset-service-providers-act-2024.
Registration Framework
The regulations set out the comprehensive application process for entities seeking registration as a VASP with cima. Key requirements include:
- Detailed Corporate Information: Including legal structure, beneficial owners, and directors.
- Business Plan: Outlining the nature, function, and purpose of the virtual asset service, along with projected revenues.
- Compliance Procedures: A detailed outline of procedures to combat money laundering, terrorist financing, and proliferation financing in accordance with the aml-compliance regulations.
- Safeguards: Internal safeguards and data protection systems to protect client assets and data.
Issuance Rules
The regulations clarify the criteria for determining whether an issuance of virtual assets is considered a "sale to the public" (e.g., if advertised to persons in the Islands or facilitated by a third party). They also define a "private sale" as an offer made to a limited number of pre-selected persons.
Fee Structure
The regulations introduced a tiered fee schedule based on the type of service (e.g., issuance vs. trading), the revenue generated, and the geographical focus of the services. This schedule was subsequently replaced by the virtual-asset-service-providers-amendment-regulations-2025.