The well-known tax haven is apparently actually trying to improve its image.
The Cayman Islands Ministry of Financial Services announced that it would develop a regulatory framework for virtual asset providers (VASPs)
In a press release dated October 31, the ministry claimed that it would „better regulate and attract people and companies professionally trading virtual assets.“
The first phase of implementation, which is already underway, is about compliance and enforcement of anti-money laundering and terrorist financing rules.
The new framework includes the latest recommendations from the Financial Action Task Force from 2019.
As Bitcoin Circuit review reported at the time , these recommendations include the controversial „travel rule“. This requires VASPs to collect and pass on personal data about the originator and beneficiary of transactions.
VASPs must register with the Cayman Islands Monetary Authority and thus demonstrate compliance with global AML / CFT standards
The Cayman Islands AML / CFT actions are currently under review by the FATF and the Caribbean Financial Action Task Force following a recently released mutual evaluation report.
The VASP framework will be submitted for review before the CFATF reassessment in November. The results of the FATF review are to be published at the end of the 1st quarter of 2021.
The second phase of the framework implementation deals with „licensing requirements and regulatory oversight“. It is expected to start in June 2021.
Last month, the Cayman Islands were removed from the blacklist of EU tax havens . The region is making serious efforts to improve its image in the financial world.