The Cayman Islands, an autonomous British overseas territory in the Caribbean, which has attracted many crypto companies in the last several years thanks to its friendly regulatory structure, now requires companies that provide custody and trade services to get a license.

According to the country’s updated virtual asset (service providers) (amendment) rules, the new law comes into force on April 1, 2025, and companies already operating in the country must submit their application by June 29, 2025.

The application process asks custodians to reveal types and amounts of crypto they plan to keep on behalf of their clients, as well as give a reason to ensure a safe storage of these cryptocurrencies, among other things.

Merchant platforms, on the other hand, have to provide insight into their expected revenue and the physical location of their operational hardware as well as disclose how they will secure these assets.

Cayman Islands’ original set of rules for virtual asset service providers (VASPS) came into force in 2021. The frame was then designed to “strengthen” the government’s ability to draw new units.

Since then, several small and large cryptic companies have obtained licenses in the country, including Coinbase, Binance, Bitwise. Others have even opened headquarters in the area, such as the Sui Foundation.