The Cayman Islands has emerged as a premier jurisdiction for Virtual Asset Service Providers (VASPs), offering a stable legal environment, tax neutrality, and a globally respected regulatory framework. Registration in Cayman signals credibility, regulatory alignment, and a commitment to transparency—key factors that enhance trust with institutional investors, counterparties, and regulators. The jurisdiction’s forward-looking approach to digital assets provides VASPs with both legitimacy and the flexibility to innovate and scale confidently. Under the amended Virtual Asset (Service Providers) Act, VASPs operating in or from the Cayman Islands are required to register with the Cayman Islands Monetary Authority (CIMA) and appoint at least three directors, including one independent non-executive director with no vested interest in the entity.
This reflects global expectations for strong governance and aligns with long-standing standards in the Mutual and Private Funds sectors. The introduction of the CIMA Rule on Corporate Governance (effective October 2023) further underscores the need for accountability, board independence, and well-defined oversight mechanisms for all CIMA-regulated entities, including those engaged in virtual asset activities. Non-compliance can result in regulatory sanctions, financial penalties, and reputational damage—making it critical for VASPs to establish robust governance structures from the outset.We help VASPs meet these evolving requirements by providing experienced, independent directors with deep expertise in blockchain technology, governance, and regulatory compliance. Our team understands the operational and strategic complexities of running a digital asset business, and brings a proactive, pragmatic approach to board leadership that strengthens oversight and builds long-term stakeholder confidence.
