Monetary Authority (Amendment) (No.2) Law, 2020 (Law 15 of 2020)

A LAW TO AMEND THE MONETARY AUTHORITY LAW (2020 REVISION) TO INCLUDE THE VIRTUAL ASSET (SERVICE PROVIDERS) LAW, 2020 AS A REGULATORY LAW; TO INCLUDE A FINANCIAL INCLUSION OBJECTIVE AS A PRINCIPAL FUNCTION OF THE AUTHORITY; TO EMPOWER THE AUTHORITY TO ADJUST THE REGULATORY REQUIREMENTS OF A PERSON WHO HOLDS A SANDBOX LICENCE UNDER THE VIRTUAL ASSET (SERVICE PROVIDERS) LAW, 2020; AND FOR INCIDENTAL AND CONNECTED PURPOSES ENACTED by the Legislature of the Cayman Islands. Short title and commencement (1) This Law may be cited as the Monetary Authority (Amendment) (No.2) Law, (2) This Law shall come into force on such date as may be appointed by Order made by the Cabinet and different dates may be appointed for different provisions of this Law and in relation to different matters. Amendment of section 2 of the Monetary Authority Law (2020 Revision) - interpretation The Monetary Authority Law (2020 Revision), in this Law referred to as the “principal Law”, is amended in section 2, in the definition of “regulatory laws” as follows — I Assent, Martyn Roper Governor Date: 25th day of May, 2020

(a) in paragraph (ga) by deleting the words “[Law 10 of 2014]; and” and substituting the words “[Law 10 of 2014];”; (b) in paragraph (h) by deleting the words “(2020 Revision),” and substituting the words “(2020 Revision); and”; and by inserting after paragraph (h) the following paragraph — “(i) Virtual Asset (Service Providers) Law, 2020,”. Amendment of section 6 - principal functions of Authority The principal Law is amended in section 6(3) as follows — (a) in paragraph (e) by deleting the words “services business; and” and substituting the words “services business;”; (b) in paragraph (f) by deleting the words “the Authority.” and substituting the words “the Authority; and”; and by inserting after paragraph (f) the following paragraph — “(g) endeavour to promote and facilitate innovation, competition, consumer benefits and the development of technology and services that encourage and promote financial inclusion.”. Insertion of section 6A - power to adjust regulatory requirements The principal law is amended by inserting after section 6 the following section —

“Power to adjust regulatory requirements 6A. The Authority may at any time during the term of a sandbox licence issued under the Virtual Asset (Service Providers) Law, 2020 — (a) waive or modify any regulatory requirements imposed in accordance with the Virtual Asset (Service Providers) Law, 2020 or any other regulatory law; or

(b) impose any additional regulatory requirements in accordance with the Virtual Asset (Service Providers) Law, 2020 or any other regulatory law,

on the person who holds the sandbox licence, based on the use of innovative technology or innovative methods of delivery, the nature and complexity of the activity, or the supervisory needs of the person who holds the sandbox licence.”. Passed by the Legislative Assembly the 20th day of May, 2020. Hon. Barbara Conolly Deputy Speaker Zena Merren-Chin Clerk of the Legislative Assembly