- Crypto.com received conditional VASP approval from the Cayman Islands Monetary Authority on January 5.
- Cayman has tightened crypto rules, requiring licences for trading and custody platforms.
- Industry experts say major exchanges seeking licences signal trust in Cayman’s framework.
A cryptocurrency exchange has moved closer to full regulatory clearance in the Cayman Islands, highlighting the territory’s growing role in global digital asset regulation.
On January 5, Crypto.com said it received conditional approval for a Virtual Asset Service Provider (VASP) licence from the Cayman Islands Monetary Authority. Crypto.com said it now serves more than 150 million users worldwide.
Cayman Tightens Crypto Rules
The Cayman Islands has steadily raised regulatory standards for digital asset companies. Earlier rules required registration, but recent updates now require trading platforms and custodial services to hold formal licences due to their higher risk profile.
Regulators say the changes are intended to strengthen oversight while still allowing innovation within the sector.
Industry Response
Legal experts welcomed the move, saying it signals confidence in the Cayman Islands’ regulatory framework. Michael Bacina, co-founder of NXT Law and deputy chair of the Blockchain Association of the Cayman Islands, said large exchanges seeking licences show a long-term commitment to operating under clear rules.
CEO and co‑founder of Parallel, Laura Birrell also opened up about the same and said , “The future of real estate is digital. And the Cayman Islands is where that future is already unfolding.”
Part of a Wider Regulatory Push
The Cayman approval adds to Crypto.com’s expanding list of regulatory clearances across major markets. The company has secured approvals or registrations in regions including the European Union, the United Kingdom, Canada, Singapore, Hong Kong, the United Arab Emirates, Australia, and several other jurisdictions.
Crypto.com said the broad regulatory coverage allows it to operate across multiple markets under local rules, as governments continue to tighten oversight of crypto platforms.
Is the Cayman Islands turning into a global crypto hub?
According to Jamie Roberts, a senior adviser to Web3 and digital asset projects in the Cayman Islands, the jurisdiction may be small in size, but not in credibility.
One of the reason for this appeal is the Cayman Foundation Company, a legal structure that does not have owners or shareholders. This makes it especially useful for decentralised projects that need a legal entity without traditional control. Roberts said his firm alone has helped set up more than 400 such entities, out of roughly 1,200 in total.
While being a British overseas territory does not give direct access to UK or EU markets, Cayman is approved by global regulators and seen as a safe, well-regulated jurisdiction. This has made it a popular choice for crypto firms and decentralised organisations setting up or relocating their operations.
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