{"kind":"expression","expression":{"expr_id":"1667","doc_id":"1667","label":"Virtual Asset (Service Providers) (Amendment) Act, 2024 (Act 22 of 2024)","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/amending\/2024\/22\/eng@2024-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/amending\/2024\/22\", \"expression\": \"\/akn\/ky\/act\/amending\/2024\/22\/eng@2024-01-01\", \"manifestation\": \"\/akn\/ky\/act\/amending\/2024\/22\/eng@2024-01-01.pdf\"}, \"pdf\": {\"md5\": \"b745d461bd5c35df25f9886ede75ea6a\", \"path\": \"\/Users\/q\/kyleg-data\/working\/AMENDING\/2024\/2024-0022\/2024-0022.pdf\", \"pages\": 24, \"filename\": \"2024-0022.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 7093, \"paragraph_count\": 28, \"text_char_count\": 45249}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"Virtual Asset (Service Providers) (Amendment) Act, 2024 22. 23. 24. 25. 26. Virtual Asset (Service Providers) (Amendment) Act, 2024 VIRTUAL ASSET (SERVICE PROVIDERS) (AMENDMENT) ACT, 2024 AN ACT TO AMEND THE VIRTUAL ASSET (SERVICE PROVIDERS) ACT (2024 REVISION) TO AMEND DEFINITIONS AND PROVIDE NEW DEFINITIONS OF TERMS USED IN THE ACT; TO IMPROVE THE SUPERVISION OF CERTAIN VIRTUAL ASSET ACTIVITIES; TO PROVIDE THAT THE FEES PAYABLE UNDER THE ACT ARE NONREFUNDABLE; AND FOR INCIDENTAL AND CONNECTED PURPOSES ENACTED by the Legislature of the Cayman Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title and commencement 1. (1) This Act may be cited as the Virtual Asset (Service Providers) (Amendment) Act, 2024. (2) This Act 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 Act and in relation to different matters.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Amendment of section 2 of the Virtual Asset (Service Providers) Act (2024 Revision) - interpretation 2. The Virtual Asset (Service Providers) Act (2024 Revision), in this Act referred to as the \u201cprincipal Act\u201d, is amended in section 2 as follows\u2014 (a) in subsection (1) as follows \u2014 I Assent, Jane Owen Governor Date: 18th December, 2024 Virtual Asset (Service Providers) (Amendment) Act, 2024 (i) by deleting the following words and their definitions \u2014 (A) \u201capplication fee\u201d; (B) \u201cexisting licensee\u201d; (C) \u201cfintech service\u201d; (D) \u201coperator\u201d; (E) \u201coriginator\u201d; and (F) \u201csenior officer\u201d; (ii) in the definition of the words \u201cfiat currency\u201d, by deleting the words \u201cthat is issued\u201d and substituting the words \u201cthat is issued exclusively\u201d; (iii) by inserting, in the appropriate alphabetical sequence, the following definitions \u2014 \u201c \u201capplication fee\u201d means the fee that is payable by an applicant for licensing or registration under section 5(1); \u201cconvertible virtual asset\u201d means a virtual asset which may be accepted, exchanged or transferred in exchange for another virtual asset or fiat currency or any other value by way of any type of function or feature of the virtual asset or third-party intermediary; \u201cfinancial services business\u201d has the meaning assigned by section 2 of the Monetary Authority Act (2020 Revision); \u201cfintech service\u201d means a service that uses innovative technology to improve, change or enhance how a financial services business is conducted but is not a virtual asset service; \u201clicence fee\u201d or \u201cregistration fee\u201d means the respective fee that is payable by an applicant for a licence or registration under section 5(2); \u201coriginator\u201d, in relation to a transfer of a virtual asset, means a person, whether natural or legal, who places an order with the virtual asset service provider for a virtual asset transfer; \u201cowner\u201d or \u201coperator\u201d, in relation to a virtual asset trading platform, means \u2014 (a) the single entity or group which exerts management control over the platform; (b) where a single entity or group which exerts management control is not identifiable, either \u2014 (i) the entity through which the platform operates; or (ii) the entity through which the platform contracts with users of the platform; or Virtual Asset (Service Providers) (Amendment) Act, 2024 (c) where an entity or group under paragraph (a) or (b) is not identifiable, the entity or group that provides the services offered by the platform to the users of the platform; \u201csenior officer\u201d means a director, managing director, president, chief executive officer, partner, managing partner, general partner, ultimate partner, manager, anti-money laundering compliance officer, money laundering reporting officer, deputy money laundering reporting officer or a person who has a similar control function; and \u201csupervised person\u201d means a person that is licensed or registered by the Authority under any of the other regulatory laws but is not licensed or registered under this Act;\u201d; (b) in subsection (2) as follows \u2014 (i) by deleting the words \u201ccentralised or decentralised\u201d; and (ii) in paragraph (a), by deleting the words \u201cwhich facilitates the exchange\u201d and substituting the words \u201cwhich provides a virtual asset service and facilitates the exchange\u201d; and (c) by repealing subsection (3).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Amendment of section 3 - meaning of \u201cvirtual asset service provider\u201d 3. The principal Act is amended in section 3(1), by deleting the words \u201can existing licensee\u201d and substituting the words \u201ca supervised person\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Amendment of section 4 - registration or licence required 4. The principal Act is amended as follows \u2014 (a) in section 4(1)(c) by deleting the words \u201can existing licensee\u201d and substituting the words \u201ca supervised person\u201d; (b) in subsection (2), by inserting after the words \u201ccourse of business\u201d the words \u201cand the Authority shall not grant registration, a licence or a waiver to a natural person\u201d; and (c) by inserting after subsection (4) the following subsection \u2014 \u201c(5) A person who is not registered, licensed or granted a waiver under this Act, including an applicant for registration, a waiver or a licence, shall not state, imply or convey that the person is regulated or authorised by the Authority to provide virtual asset service.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Amendment of section 5 - fees 5. The principal Act is amended in section 5 as follows \u2014 (a) by repealing subsections (1), (2) and (3) and substituting the following subsections \u2014 Virtual Asset (Service Providers) (Amendment) Act, 2024 \u201c(1) An application for registration or a licence shall be accompanied by the prescribed application fee. (2) On the Authority\u2019s decision to approve an application for registration or a licence, the Authority shall notify the applicant of its approval and the applicant shall pay the respective prescribed registration or licence fee.\u201d; (b) by repealing subsection (4), and substituting the following subsection \u2014 \u201c(4) The respective prescribed licence or registration fee shall be paid by the applicant no later than thirty days after being notified by the Authority of the approval of the application and where the fee is not paid the approval shall be cancelled by the Authority.\u201d; (c) by repealing subsection (7) and substituting the following subsections \u2014 \u201c(6A)The Authority may publish in the Gazette a notice of lapse of licence or registration where either a licence or registration lapses in accordance with subsection (6). (7) The Authority may, for good cause, waive any surcharge imposed under subsection (5) or administration fee under subsection (6)(c) or both.\u201d; and (d) by inserting after subsection (8) the following subsection \u2014 \u201c(9) The prescribed fees payable under this Act are non-refundable.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Amendment of section 6 - application for registration 6. The principal Act is amended in section 6 as follows \u2014 (a) by repealing subsections (1) to (3) and substituting the following subsections \u2014 \u201c(1) Subject to subsection (3), a person, not being a supervised person who has been granted a waiver for registration or a licence under section 16, who \u2014 (a)  at the commencement of the Virtual Asset (Service Providers) (Amendment) Act, 2024 is carrying on virtual asset service for which a licence is not required under this Act; (b)  wishes to carry on virtual asset service for which a licence is not required under this Act; or (c) has been directed by the Authority to apply for registration under this Act, shall apply in the prescribed form to be a registered person under this Act and submit the application along with the prescribed assessment fee to the Authority. Virtual Asset (Service Providers) (Amendment) Act, 2024 (2) The Authority, in determining whether to approve the application from a person in subsection (1), shall consider whether \u2014 (a) the applicant should apply instead for a virtual asset service licence or a sandbox licence as the virtual asset service is one for which a licence is required; or (b) the applicant should apply instead for registration or a licence under one of the other regulatory laws. (2A) The Authority may impose conditions on an applicant for registration at the time of application or at any time thereafter, as the Authority may consider appropriate having regard to the nature, risk and scale of the business. (2B) An applicant for registration shall not be registered unless the applicant has satisfied the Authority that the applicant\u2019s shareholders, directors and senior officers are fit and proper persons. (3) The Authority shall either \u2014 (a) where it determines that the applicant is suitable to be registered, register the applicant on \u2014 (i) the fulfilment of the conditions under subsection (2A) where conditions are imposed; and (ii) the payment of the registration fee; or (b) where the applicant is found to be unsuitable, refuse the application for registration.\u201d; and (b) by repealing subsections (6) and (7) and substituting the following subsections \u2014 \u201c(6) If a registered person wishes to engage in activities for which a licence is required under this Act, the Authority shall require the registered person to apply for a licence and the Authority shall cancel the registration if the licence is granted. (6A) A registered person who at the commencement of the Virtual Asset (Service Providers) (Amendment) Act, 2024 is engaged in an activity for which a licence is required shall apply for a licence within ninety days of the commencement. (7) A registered person shall not publicly state, imply or convey that it is \u2014 (a) licensed in the Islands for the provision of virtual asset custodial services or the operation of a trading platform; or (b) otherwise licensed under this Act.\u201d. Virtual Asset (Service Providers) (Amendment) Act, 2024\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Amendment of section 8 - application for virtual asset service licence 7. The principal Act is amended in section 8 as follows \u2014 (a) in subsection (1) as follows \u2014 (i) by repealing paragraph (c) and substituting the following paragraph \u2014 \u201c(c) is a supervised person conducting virtual asset services and has been directed by the Authority to obtain a virtual asset service licence; or\u201d; and (ii) by deleting the words \u201cmay apply for\u201d and substituting the words \u201cshall apply for\u201d; (b) in subsection (2)(c) as follows \u2014 (i) by deleting the words \u201capplicant to apply for a licence\u201d and substitute the words \u201capplicant to apply for a licence or registration\u201d; and (ii) by deleting the words \u201cand for which supervision under this Act is not required\u201d; (c) in subsection (4) as follows \u2014 (i) by deleting the words \u201cthe matters set out in section 22 and\u201d; (ii) by inserting after paragraph (a) the following paragraph \u2014 \u201c(aa) the applicant has satisfied the Authority that the applicant\u2019s beneficial owners and senior officers are fit and proper persons;\u201d; and (iii) by deleting the words \u201capplication fee under section 5(3)\u201d and substituting the words \u201cprescribed application fee\u201d; (d) by repealing subsection (5) and substituting the following subsections \u2014 \u201c(5) On payment of the licence fee, the Authority shall grant the licence and the licence shall set out the specific service that the licensee is permitted to carry on. (5A)The Authority may impose conditions on an applicant for a licence at the time of application, or at any time after, as the Authority considers appropriate having regard to the nature, risk and scale of the business.\u201d; and (e) in subsection (8)(a), by deleting the words \u201cregulatory requirements on a virtual asset\u201d and substituting the words \u201crequirements on a virtual asset\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Amendment of section 9 - general requirements for virtual asset service providers 8. The principal Act is amended in section 9 as follows \u2014 (a) by inserting after subsection (2) the following subsection \u2014 Virtual Asset (Service Providers) (Amendment) Act, 2024 \u201c(2A)The Authority may require a registered person to provide audited financial statements in accordance with section 31 where the Authority \u2014 (a) determines that they are required due to the nature, size or complexity of the registered person; or (b) has reasonable grounds for believing that the registered person has provided false or misleading accounts under subsection (2).\u201d; (b) in subsection (3) as follows \u2014 (i) by inserting after paragraph (a) the following paragraph \u2014 \u201c(aa) have no less than three directors at all times including at least one independent director without a vested interest in the virtual asset service provider;\u201d; (ii) by repealing paragraph (c) and substituting the following paragraphs \u2014 \u201c(c) ensure the accuracy of all disclosures, advertising materials and communications relating to the virtual asset service with clients and members of the public;\u201d; (ca) carry on virtual asset services only in accordance with the information given in its approved application for registration, waiver or a licence and in the business plan and only engage in the virtual asset services for which it has been licensed, registered or granted a waiver; (cb) seek the prior written approval of the Authority \u2014 (i) to make a change to the approved business plan which modifies or changes the provision of the virtual asset services for which it has been granted registration or a licence; or (ii) to provide additional virtual asset services which were not included in the approved application or business plan;\u201d; (iii) in paragraph (d), by deleting the words \u201cproliferation financing;\u201d and substituting the words \u201cproliferation financing; and\u201d; (iv) in paragraph (e), by deleting the words \u201csystems and procedures; and\u201d and substituting the words \u201csystems and procedures.\u201d; and (v) by repealing paragraph (f); (c) in subsection (4)(c) as follows \u2014 (i) by deleting the words \u201cnotify the Authority of\u201d and substituting the words \u201cnotify the Authority within thirty days of\u201d; Virtual Asset (Service Providers) (Amendment) Act, 2024 (ii) in subparagraph (ii), by deleting the words \u201cor establishing a physical presence\u201d and substituting the words \u201c, subsidiary, agency, branch or other physical presence\u201d; and (iii) by repealing subparagraph (iii) and substituting the following subparagraph \u2014 \u201c(iii) any penalties that are imposed or enforcement actions taken against it or any litigation proceedings brought against the virtual asset service provider in this or another jurisdiction; or\u201d; (d) by repealing subsection (5) and substituting the following subsection \u2014 \u201c(5) When performing a transfer of virtual assets, a virtual asset service provider shall \u2014 (a) collect and maintain information on the beneficiary and originator of the transfer in accordance with the Anti-Money Laundering Regulations (2023 Revision); (b) comply with any other requirements relating to virtual asset service providers set out in the Anti-Money Laundering Regulations (2023 Revision); and (c) collect and retain any information regarding the beneficiary and originator or take any additional measures regarding the virtual asset transfer as may be specified by the Authority, and the records shall \u2014 (i) be made available, at the request of the Authority or any competent authority, through the virtual asset service provider\u2019s registered office; and (ii) where a request for information is made under subparagraph (i), be provided by the virtual asset service provider within forty-eight hours of receipt of the request.\u201d; (e) in subsection (7), by deleting the words \u201cto ensure compliance with the Anti-Money Laundering Regulations (2023 Revision)\u201d; and (f) by repealing subsections (8) and (9) and substituting the following subsections \u2014 \u201c(8) A virtual asset service provider shall not appoint a senior officer or trustee without the prior approval of the Authority. (9) The Authority shall not grant the approval specified in subsection (8) where a senior officer or trustee is not a fit and proper person. (9A) Approval granted under subsection (8) \u2014 Virtual Asset (Service Providers) (Amendment) Act, 2024 (a) lapses if the senior officer or trustee becomes bankrupt or is convicted of an offence involving dishonesty; and (b) may be revoked by the Authority where the Authority has sufficient cause to believe that the senior officer or trustee is no longer able to perform the functions required by the appointment. (9B) A virtual asset service provider who knowingly makes, issues or permits to be made or issued any representation about or description of the provider\u2019s virtual asset activities in any form or by any method that is misleading to the public commits an offence.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Amendment of section 10 - requirements: virtual asset custody services 9. The principal Act is amended in section 10 as follows \u2014 (a) in subsection (1) as follows \u2014 (i) by repealing paragraph (c) and substituting the following paragraph \u2014 \u201c(c) disclosures to clients concerning \u2014 (i) the transparency of operations including the risks associated with custodial arrangements; (ii) internal safeguards; (iii) the methods of access to virtual assets held; (iv) insurance arrangements; (v) regulatory obligations; (vi) grievance procedures; (vii) third party sharing of clients\u2019 information; and (viii) internal custodial governance arrangements including safeguards;\u201d; (ii) in paragraph (d), by deleting the words \u201ccybersecurity measures; and\u201d and substituting the words \u201ccybersecurity measures;\u201d; (iii) by inserting after paragraph (d) the following paragraphs \u2014 \u201c(da)requirements for the manner in which virtual assets are held and maintained on behalf of clients, including any necessary arrangements regarding the safe custody of virtual assets; (db)requirements for the provision of products and services which derive their value from underlying virtual assets; and\u201d; and (b) in subsection (3) as follows \u2014 (i) in paragraph (c), by deleting the words \u201cproceeds relating to\u201d and substituting the words \u201cproceeds or tangible benefits relating to\u201d; and Virtual Asset (Service Providers) (Amendment) Act, 2024 (ii) by repealing paragraphs (d) and (e) and substituting the following paragraphs \u2014 \u201c(d) where a licensee holds fiat currency on behalf of a client, hold the fiat currency in a bank regulated by the Authority or another regulator in a non high-risk jurisdiction in a manner where the fiat currency is segregated from any fiat currency owned by the licensee; (e) take steps as may be necessary to safeguard the virtual assets held on behalf of third parties including where virtual assets are held on behalf of the virtual asset service licensee by third parties; (f) have adequate safeguards, including safeguards against theft and loss; (g) maintain accurate and up-to-date records and accounts of client assets that readily establish the precise nature, amount, location and ownership status of client assets and the clients for whom the assets are held; and (h) segregate client assets from proprietary assets and the assets of any affiliate or a virtual asset service provider held by the licensee, and place client assets in trust or in segregated bankruptcy remote accounts (or provide equivalent protection through legal or accounting mechanisms recognised in the relevant jurisdiction) so that client assets are separate and distinct from the licensee\u2019s own assets or estate.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Repeal of section 13 - directions to apply for licence under this Act 10. The principal Act is amended by repealing section 13.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Repeal and substitution of sections 14 and 15 - directions to apply for a licence under another regulatory law; notice by existing licensee 11. The principal Act is amended by repealing sections 14 and 15 and substituting the following sections \u2014 \u201cDirections to apply for licence or registration under another regulatory law 14. (1) The Authority shall require a virtual asset service provider registered or licensed under this Act to apply for a licence or registration under any of the other regulatory laws, where the virtual asset service provider is carrying on financial services business \u2014 (a) that is materially similar to financial services business for which there is a licensing or registration regime under any of the other Virtual Asset (Service Providers) (Amendment) Act, 2024 regulatory laws that provides sufficient oversight and supervision for that financial services business; or (b) that requires additional oversight that is provided for in a licensing or registration regime under the other regulatory laws. (2) On approval of a licence or registration under any of the other regulatory laws in respect of a virtual asset service provider carrying on financial services business referred to in subsection (1)(a), the Authority shall cancel the registration or revoke the licence under this Act and waive the requirement for registration or a licence under this Act in accordance with section 15. (3) Where a virtual asset service provider is carrying on financial services business referred to in subsection (1)(b), the licence or registration approved under any of the other regulatory laws is in addition to the licence or registration under this Act. Application by supervised person 15. (1) A supervised person who wishes to carry on virtual asset service shall apply to the Authority, in the manner specified by the Authority, for any of the following \u2014 (a) a virtual asset service licence; (b) registration; or (c) a waiver of licensing or registration requirements under this Act in accordance with section 16, setting out in detail the nature and scope of the virtual asset service that the supervised person wishes to carry on. (2) The supervised person shall provide any additional information as the Authority considers necessary in order for it to make a determination under this section. (3) An application under this section is not required where the supervised person is carrying on virtual asset activities that involve virtual service tokens only. (4) In making a determination regarding an application under this section, the Authority may \u2014 (a) grant or deny the licence or registration as requested; (b) grant or deny the waiver as requested; or (c) direct the supervised person to apply for a licence or registration under one of the other regulatory laws. (5) A supervised person shall comply with any relevant provisions of this Act as the Authority may require. Virtual Asset (Service Providers) (Amendment) Act, 2024 (6) A supervised person who fails to make an application under this section while carrying on virtual asset service commits an offence and is liable on summary conviction to a fine of fifty thousand dollars.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Amendment of section 16 - waiver 12. The principal Act is amended in section 16 as follows \u2014 (a) by deleting the words \u201can existing licensee\u201d wherever they appear and substituting the words \u201ca supervised person\u201d; (b) by deleting the words \u201cthe existing licensee\u201d wherever they appear and substituting the word \u201cthe supervised person\u201d; (c) in subsection (2), by deleting the words \u201cprovided in the notice\u201d and substituting the words \u201cprovided in the application\u201d; and (d) by inserting after subsection (3) the following subsection \u2014 \u201c(4) The Authority may revoke a waiver granted under this Act where it is of the opinion that \u2014 (a) the supervised person has failed to comply with any conditions imposed by the Authority; (b) the virtual asset service provided by the supervised person has changed materially and requires registration or a licence under this Act; or (c) there is a change in size, scope, risk or complexity of the business operations and requires registration or a licence under this Act.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Amendment of section 19 - application for a sandbox licence 13. The principal Act is amended in section 19 as follows \u2014 (a) in subsection (1)(b)(ii), by deleting the words \u201cexisting licensees\u201d and substituting the words \u201csupervised persons\u201d; (b) in subsection (4), by deleting the words \u201cAn existing licensee\u201d and substituting the words \u201cA supervised person\u201d; (c) in subsection (5), by deleting the words \u201capplication fee as may be specified by the Authority\u201d and substituting the words \u201cprescribed application fee\u201d; (d) in subsection (6), by deleting the words \u201csandbox application fee\u201d and substituting the words \u201csandbox licence fee\u201d; and (e) in subsection (8), by deleting the words \u201cthe matters set out in section 22\u201d and substituting the words \u201cthe fintech service and its probable effects on financial services business\u201d. Virtual Asset (Service Providers) (Amendment) Act, 2024\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Repeal of Part 4 - decisions to licence, register, approve issuances 14. The principal Act is amended by repealing Part 4.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Amendment of section 24 - powers and duties of the Authority 15. The principal Act is amended in section 24 as follows \u2014 (a) in subsection (1)(c), as follows \u2014 (i) in subparagraph (iii), by deleting the words \u201ca licensee is\u201d and substituting the words \u201ca virtual asset service provider is\u201d; and (ii) in subparagraph (iv), by deleting the words \u201cwhether a licensee\u2019s\u201d and substituting the words \u201cwhether a virtual asset service provider\u2019s\u201d; (b) by inserting after subsection (2) the following subsections \u2014 \u201c(2A)In the performance of its functions under this Act, the Authority may, at all reasonable times, request \u2014 (a) any information, matter or thing from any person whom the Authority has reasonable grounds to believe is carrying on virtual asset service in contravention of this Act; and (b) access to view and to make copies of any books, records, documents, cash, virtual assets or securities, as the Authority may reasonably require for the performance of its functions under this Act. (2B) The Authority may require a supervised person whom the Authority has reasonable grounds to believe is conducting virtual asset services in contravention of this Act to grant access in order that it may view and make copies of any books, records and documents, cash, virtual assets and securities. (2C) For the purpose of performing its duties under subsection (1)(b), the Authority may authorise, in writing, a person with the requisite technical expertise to examine the affairs or business of a licensee, registered person or other person carrying on virtual asset services and to report to the Authority the results of the examination. (2D) The Authority, in the performance of its functions, is entitled to access at reasonable times the necessary books and records and to request any information or thing from any person as may be reasonably required to enable the Authority to perform its functions. (2E) The Authority may charge a fee for the performance of its functions under subsection (1)(c) such fee being commensurate with the nature, size and complexity of the virtual asset service provider.\u201d; and (c) by repealing subsection (4). Virtual Asset (Service Providers) (Amendment) Act, 2024\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Amendment of section 25 - enforcement powers of the Authority 16. The principal Act is amended in section 25 as follows \u2014 (a) in subsection (3) as follows \u2014 (i) by repealing paragraph (a) and substituting the following paragraph \u2014 \u201c(a) revoke a virtual asset service licence, a sandbox licence, a waiver or cancel a registration;\u201d; (ii) in paragraph (b), by deleting the words \u201cupon the licence\u201d and substituting the words \u201con the licence, registration or waiver\u201d; (iii) by repealing paragraph (j) and substituting the following paragraph\u2014 \u201c(j) at the expense of the virtual asset service provider, appoint a person to advise the virtual asset service provider on the proper conduct of its affairs and to report to the Authority on the appointment; or\u201d; and (iv) in paragraph (k) as follows \u2014 (A) by deleting the words \u201cthe licensee\u201d and substituting the words \u201cthe virtual asset service provider\u201d; and (B) by deleting the words \u201cthe licensee\u2019s\u201d and substituting the words \u201cthe virtual asset service provider\u2019s\u201d; (b) in subsection (4)(d), by deleting the words \u201cthe licensee\u2019s right\u201d and substituting the words \u201cthe virtual asset service provider\u2019s right\u201d; (c) in subsection (5), by deleting the words \u201cof the licensee\u201d and substituting the words \u201cof the virtual asset service provider\u201d; and (d) in subsection (6), by repealing paragraph (d) and substituting the following paragraph \u2014 \u201c(d) revoke the licence or cancel the registration and apply to the court for an order that the virtual asset service provider, if it is \u2014 (i) a company, be wound up by the court and, in the event of the winding up, the provisions of the Companies Act (2023 Revision) relating to the winding up of a company shall apply; (ii) a general partnership or a limited partnership, be wound up by the court and, in the event of the winding up the provisions of the Partnership Act (2024 Revision) relating to the winding up of a general partnership or a limited partnership shall apply; Virtual Asset (Service Providers) (Amendment) Act, 2024 (iii) a limited liability partnership be wound up by the court and, in the event of the winding up, the relevant provisions of the Limited Liability Partnership Act  (2023 Revision) shall apply; (iv) an exempted limited partnership be wound up by the court and, in the event of the winding up, the relevant provisions of the Exempted Limited Partnership (2021 Revision) shall apply; or (v) a limited liability company be wound up by the court and, in the event of the winding up, the relevant provisions of the Limited Liability Companies Act (2023 Revision) shall apply;\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Amendment of section 26 - direction to cease and desist 17. The principal Act is amended in section 26 as follows \u2014 (a) in subsection (1) as follows \u2014 (i) in paragraph (a), by deleting the words \u201cservice provider; or\u201d and substituting the words \u201cservice provider;\u201d; (ii) in paragraph (b), by deleting the words \u201cservice provider,\u201d and substituting the words \u201cservice provider; or\u201d; and (iii) by inserting after paragraph (b) the following paragraph \u2014 \u201c(c) registered or granted a waiver and does not hold a licence but is publicly stating, implying or conveying that it is licensed in accordance with this Act,\u201d; (b) by inserting after subsection (1) the following subsection \u2014 \u201c(1A) Where the Authority has determined that a person is engaged in virtual asset services without a licence or registration or a waiver under this Act, or is otherwise in contravention of this Act, the Authority may direct the person to cease and desist from carrying out the activity which is in contravention of this Act.\u201d; (c) in subsection (2), by deleting the words \u201cby the Authority under subsection (1)\u201d and substituting the words \u201cby the Authority under subsection (1) or (1A)\u201d; and (d) by repealing subsection (3).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Amendment of section 27 - revocation of licence 18. The principal Act is amended in section 27 as follows \u2014 (a) by deleting the section heading and substituting the following section heading \u2014 \u201cRevocation of licence or cancellation of registration\u201d; Virtual Asset (Service Providers) (Amendment) Act, 2024 (b) by repealing subsection (1) and substituting the following subsection \u2014 \u201c(1) The Authority may revoke a virtual asset service licence, revoke a sandbox licence, revoke a waiver, cancel a registration or cancel the approval for a virtual asset issuance where it is of the opinion that \u2014 (a) the virtual asset service provider has failed to comply with an obligation imposed on it by this Act; (b) the virtual asset service provider is carrying on business in a manner that is not permitted by the licence or the conditions of its registration or the conditions of the waiver; (c) the Authority has been provided with false, misleading or inaccurate information by or on behalf of the virtual asset service provider or a person who is a senior officer or trustee of the virtual asset service provider; (d) the interests of the clients or potential clients of the virtual asset service provider are threatened; or (e) the virtual asset service provider has contravened the AntiMoney Laundering Regulations (2023 Revision).\u201d; and (c) in subsection (2), by deleting the words \u201cit shall publish\u201d and substituting the words \u201cit may publish\u201d. Amendment of section 28 - shares not to be issued or transferred without the prior approval of the Authority\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"The principal Act is amended in section 28(4) as follows \u2014 (a) by deleting the words \u201ca legal person\u201d and substituting the words \u201ca company or partnership\u201d; and (b) by deleting the words \u201cthe legal person or legal arrangement\u201d and substituting the words \u201cthe company or partnership\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Amendment of section 30 - appeals against decisions made by the Authority 20. The principal Act is amended in section 30(1) by repealing paragraph (f) and substituting the following paragraph \u2014 \u201c(f) for refusal of a waiver under section 16 for a supervised person to engage in virtual asset service.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Amendment of section 31 - audit of accounts 21. The principal Act is amended in section 31 as follows \u2014 (a) by repealing subsections (1) and (2) and substituting the following subsections \u2014 \u201c(1) Every licensee or registered person which has been directed to provide audited financial statements under section 9(2A) shall have Virtual Asset (Service Providers) (Amendment) Act, 2024 its accounts audited annually or at such other times as the Authority may require by an auditor who shall be a chartered accountant, certified public accountant or other professionally qualified accountant approved by the Authority. (2) The audited accounts shall be forwarded to the Authority within six months after the end of the financial year of the licensee or registered person under subsection (1) unless prior written approval for an extension has been granted by the Authority. (2A) A licensee or registered person under subsection (1) shall forward to the Authority consolidated accounts in respect of the parent undertaking of the group of which the licensee or registered person under subsection (1) is a member within three months after the end of the financial year of the parent undertaking of the group unless prior written approval for an extension has been granted by the Authority.\u201d; (b) in subsection (3), as follows \u2014 (i) by deleting the word \u201clicensee\u201d wherever it appears and substituting the words \u201clicensee or registered person under subsection (1)\u201d; and (ii) by deleting the words \u201ccomply with subsection (2)\u201d and substituting the words \u201ccomply with subsection (2) or (2A)\u201d; (c) by repealing subsection (4); (d) in subsection (5), by deleting the word \u201clicensee\u201d and substituting the words \u201clicensee or registered person under subsection (1)\u201d; and (e) by repealing subsections (6) and (7) and substituting the following subsections \u2014 \u201c(6) If it appears to the Authority that an auditor has failed to comply with the requirements in section 32(1), the Authority may disqualify the auditor from being an auditor of a licensee or registered person under subsection (1). (6A) The Authority may remove any disqualification imposed under subsection (6) if it is satisfied that the person in question will in future comply with the requirements in section 32(1). (7) A licensee or a registered person under subsection (1) shall not appoint as an auditor a person disqualified under subsection (6).\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_22\", \"num\": \"22.\", \"text\": \"Amendment of section 32 - duty of auditor 22. The principal Act is amended in section 32 as follows \u2014 (a) in subsection (1) as follows \u2014 Virtual Asset (Service Providers) (Amendment) Act, 2024 (i) in paragraph (c), by deleting the words \u201cor creditors; or\u201d and substituting the words \u201cor creditors;\u201d; (ii) in paragraph (d), by deleting the words \u201cproduce a report,\u201d and substitute the words \u201cproduce a report; or\u201d; (iii) by inserting after paragraph (d), the following paragraph \u2014 \u201c(e) is carrying on or attempting to carry on business in a fraudulent or criminal manner,\u201d; and (iv) by deleting the words \u201cthe auditor shall immediately give the Authority and the licensee\u201d and substituting the words \u201cthe auditor shall, subject to subsection (1A), immediately give the Authority, the licensee and the registered person\u201d; (b) by inserting after subsection (1) the following subsection \u2014 \u201c(1A)Written notice under subsection (1) shall only be given to the licensee or the registered person if the notice does not impede the obligations of the auditor.\u201d; and (c) by inserting after subsection (5) the following subsection \u2014 \u201c(6) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_23\", \"num\": \"23.\", \"text\": \"Repeal and substitution of section 33 - entry and search of premises 23. The principal Act is amended by repealing section 33 and substituting the following section \u2014 \u201cEntry and search of premises\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_33\", \"num\": \"33.\", \"text\": \"(1) If a magistrate is satisfied by information on oath, given by the Authority or by a person authorised under section 24(2C) to assist the Authority, that either \u2014 (a) there is reasonable ground for believing that an offence against this Act, the Proceeds of Crime Act (2024 Revision), the AntiMoney Laundering Regulations (2023 Revision), or the Beneficial Ownership Transparency Act, 2023, has been or is being committed and that evidence of the commission of the offence is to be found at any premises, or in any electronic device, platform or computer specified in the information; or (b) books, records, vouchers, documents, cash, virtual assets or securities which ought to have been produced under section 24(2A) and have not been produced are to be found at any premises or in any electronic device, platform or computer specified in the information, Virtual Asset (Service Providers) (Amendment) Act, 2024 the magistrate may authorise the Authority, a person authorised under section 24(2C) or any constable of the rank of Inspector or above, together with any other person named in the warrant and any other constables, to enter the premises specified in the information in which the electronic device or platform or computer so specified may be, at any time within one month from the date of the warrant, and to search the premises, electronic device, platform or computer. (2) The person authorised by the warrant under subsection (1) to conduct a search may \u2014 (a) search every person who is found in, or whom that person has reasonable grounds to believe to have recently entered or is about to enter, the premises or had access to the electronic device, or platform or computer; and (b) may seize any books, records, vouchers, documents, cash, virtual assets or securities \u2014 (i) in the possession of any person referred to in paragraph (a); (ii) in the premises specified in the information; or (iii) stored on an electronic device, platform or computer, which the person authorised by the warrant has reasonable grounds for believing ought to have been produced under section 24(2A). (3) Where under this section a person has any power to enter any premises that person may use such force as is reasonably necessary for the purpose of exercising that power. (4) A person who obstructs the Authority or any other person in the exercise of any powers conferred on it or that person under this section commits an offence and is liable on summary conviction to a fine of ten thousand dollars or to imprisonment for one year, or to both. (5) For the purposes of this section, \u201cpremises\u201d includes any vehicle, vessel or aircraft.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_24\", \"num\": \"24.\", \"text\": \"Amendment of section 39 - regulations 24. The principal Act is amended in section 39 by deleting the words \u201cfinancial service business\u201d wherever it appears and substituting the words \u201cfinancial services business\u201d. Virtual Asset (Service Providers) (Amendment) Act, 2024\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_25\", \"num\": \"25.\", \"text\": \"General amendments to the Virtual Asset (Service Providers) Act (2024 Revision) 25. The Virtual Asset (Service Providers) Act (2024 Revision), in this Act referred to as the \u201cprincipal Act\u201d, is amended as follows \u2014 (a) by deleting the cross-heading \u201cDirections to apply for licence\u201d that appears after section 12 and substituting the cross-heading \u201cDirections to apply for licence or registration\u201d; (b) by deleting the cross-heading \u201cExisting licensee\u201d that appears after section 14 and substituting the cross-heading \u201cSupervised person\u201d; (c) by deleting the words \u201capplication fee\u201d wherever they appear and substituting the words \u201clicensing or registration fee\u201d; and (d) by deleting the words \u201cassessment fee\u201d wherever they appear and substituting the words \u201capplication fee\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_26\", \"num\": \"26.\", \"text\": \"Transitional 26. Notwithstanding section 5 of this amending Act, the fee for an application for which a decision is pending on the day immediately preceding the commencement of this amending Act shall be refundable. Passed by the Parliament the 11th day of December, 2024. Hon. Sir Alden McLaughlin Speaker Zena Merren-Chin Clerk of the Parliament\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2024_01_01\", \"date\": \"2024-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_2024_01_01\", \"timeInterval\": [{\"end\": null, \"start\": \"#e_commence_2024_01_01\", \"duration\": null, \"refersTo\": \"#inForce\"}]}]}, \"classification\": null, \"identification\": {\"source\": \"#cilegis\", \"FRBRWork\": {\"FRBRuri\": \"\/akn\/ky\/act\/amending\/2024\/22\", \"FRBRdate\": [{\"date\": \"2024-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/amending\/2024\/22\/!main\", \"FRBRalias\": [{\"name\": \"cmsId\", \"value\": \"2024-0022\"}], \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRnumber\": \"22 of 2024\", \"FRBRcountry\": \"ky\", \"FRBRsubtype\": \"amending\"}, \"FRBRExpression\": {\"FRBRuri\": \"\/akn\/ky\/act\/amending\/2024\/22\/eng@2024-01-01\", \"FRBRdate\": [{\"date\": \"2024-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/amending\/2024\/22\/eng@2024-01-01\/!main\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/act\/amending\/2024\/22\/eng@2024-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/amending\/2024\/22\/eng@2024-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"Virtual Asset (Service Providers) (Amendment) Act, 2024 (Act 22 of 2024)\", \"actNumber\": \"22 of 2024\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nVIRTUAL ASSET (SERVICE PROVIDERS)\n(AMENDMENT) ACT, 2024\n(Act 22 of 2024)\nSupplement No. 13 published with Legislation Gazette No. 47 dated 19th December, 2024.\n\u2000\n\nPage 2\nAct 22 of 2024\nc\n\nPUBLISHING DETAILS\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nArrangement of Sections\n\nc\nAct 22 of 2024\nPage 3\n\nCAYMAN ISLANDS\n\nVIRTUAL ASSET (SERVICE PROVIDERS)\n(AMENDMENT) ACT, 2024\n(Act 22 of 2024)\nArrangement of Sections\nSection\nPage\n1.\nShort title and commencement ..................................................................................................5\n2.\nAmendment of section 2 of the Virtual Asset (Service Providers) Act (2024 Revision) -\ninterpretation..............................................................................................................................5\n3.\nAmendment of section 3 - meaning of \u201cvirtual asset service provider\u201d ........................................7\n4.\nAmendment of section 4 - registration or licence required ..........................................................7\n5.\nAmendment of section 5 - fees ..................................................................................................7\n6.\nAmendment of section 6 - application for registration .................................................................8\n7.\nAmendment of section 8 - application for virtual asset service licence ..................................... 10\n8.\nAmendment of section 9 - general requirements for virtual asset service providers .................. 10\n9.\nAmendment of section 10 - requirements: virtual asset custody services ................................. 13\n10.\nRepeal of section 13 - directions to apply for licence under this Act ......................................... 14\n11.\nRepeal and substitution of sections 14 and 15 - directions to apply for a licence under\nanother regulatory law; notice by existing licensee ................................................................... 14\n12.\nAmendment of section 16 - waiver ........................................................................................... 16\n13.\nAmendment of section 19 - application for a sandbox licence .................................................. 16\n14.\nRepeal of Part 4 - decisions to licence, register, approve issuances ........................................ 17\n15.\nAmendment of section 24 - powers and duties of the Authority ................................................ 17\n16.\nAmendment of section 25 - enforcement powers of the Authority ............................................. 18\n17.\nAmendment of section 26 - direction to cease and desist ......................................................... 19\n18.\nAmendment of section 27 - revocation of licence ..................................................................... 19\n19\nAmendment of section 28 - shares not to be issued or transferred without the prior\napproval of the Authority .......................................................................................................... 20\n20.\nAmendment of section 30 - appeals against decisions made by the Authority .......................... 20\n21.\nAmendment of section 31 - audit of accounts ........................................................................... 20\n\nArrangement of Sections\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 4\nAct 22 of 2024\nc\n\n22.\nAmendment of section 32 - duty of auditor ............................................................................... 21\n23.\nRepeal and substitution of section 33 - entry and search of premises ...................................... 22\n24.\nAmendment of section 39 - regulations .................................................................................... 23\n25.\nGeneral amendments to the Virtual Asset (Service Providers) Act (2024 Revision) ................. 24\n26.\nTransitional .............................................................................................................................. 24\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 1\n\nc\nAct 22 of 2024\nPage 5\n\nCAYMAN ISLANDS\n\nVIRTUAL ASSET (SERVICE PROVIDERS)\n(AMENDMENT) ACT, 2024\n(Act 22 of 2024)\nAN ACT TO AMEND THE VIRTUAL ASSET (SERVICE PROVIDERS) ACT (2024\nREVISION) TO AMEND DEFINITIONS AND PROVIDE NEW DEFINITIONS OF TERMS\nUSED IN THE ACT; TO IMPROVE THE SUPERVISION OF CERTAIN VIRTUAL ASSET\nACTIVITIES; TO PROVIDE THAT THE FEES PAYABLE UNDER THE ACT ARE NONREFUNDABLE; AND FOR INCIDENTAL AND CONNECTED PURPOSES\nENACTED by the Legislature of the Cayman Islands.\n1.\nShort title and commencement\n1.\n(1) This Act may be cited as the Virtual Asset (Service Providers) (Amendment)\nAct, 2024.\n(2) This Act shall come into force on such date as may be appointed by Order made\nby the Cabinet and different dates may be appointed for different provisions of\nthis Act and in relation to different matters.\n2.\nAmendment of section 2 of the Virtual Asset (Service Providers) Act (2024\nRevision) - interpretation\n2.\nThe Virtual Asset (Service Providers) Act (2024 Revision), in this Act referred to as\nthe \u201cprincipal Act\u201d, is amended in section 2 as follows\u2014\n(a)\nin subsection (1) as follows \u2014\n(Act 22 of 2024)\nI Assent,\nJane Owen\nGovernor\nDate: 18th December, 2024\n\nSection 2\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 6\nAct 22 of 2024\nc\n\n(i)\nby deleting the following words and their definitions \u2014\n(A) \u201capplication fee\u201d;\n(B) \u201cexisting licensee\u201d;\n(C) \u201cfintech service\u201d;\n(D) \u201coperator\u201d;\n(E) \u201coriginator\u201d; and\n(F) \u201csenior officer\u201d;\n(ii) in the definition of the words \u201cfiat currency\u201d, by deleting the words\n\u201cthat is issued\u201d and substituting the words \u201cthat is issued\nexclusively\u201d;\n(iii) by inserting, in the appropriate alphabetical sequence, the following\ndefinitions \u2014\n\u201c \u201capplication fee\u201d means the fee that is payable by an applicant for\nlicensing or registration under section 5(1);\n\u201cconvertible virtual asset\u201d means a virtual asset which may be\naccepted, exchanged or transferred in exchange for another virtual\nasset or fiat currency or any other value by way of any type of\nfunction or feature of the virtual asset or third-party intermediary;\n\u201cfinancial services business\u201d has the meaning assigned by section 2\nof the Monetary Authority Act (2020 Revision);\n\u201cfintech service\u201d means a service that uses innovative technology to\nimprove, change or enhance how a financial services business is\nconducted but is not a virtual asset service;\n\u201clicence fee\u201d or \u201cregistration fee\u201d means the respective fee that is\npayable by an applicant for a licence or registration under section\n5(2);\n\u201coriginator\u201d, in relation to a transfer of a virtual asset, means a\nperson, whether natural or legal, who places an order with the virtual\nasset service provider for a virtual asset transfer;\n\u201cowner\u201d or \u201coperator\u201d, in relation to a virtual asset trading platform,\nmeans \u2014\n(a)\nthe single entity or group which exerts management control\nover the platform;\n(b) where a single entity or group which exerts management control\nis not identifiable, either \u2014\n(i)\nthe entity through which the platform operates; or\n(ii) the entity through which the platform contracts with users\nof the platform; or\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 3\n\nc\nAct 22 of 2024\nPage 7\n\n(c)\nwhere an entity or group under paragraph (a) or (b) is not\nidentifiable, the entity or group that provides the services\noffered by the platform to the users of the platform;\n\u201csenior officer\u201d means a director, managing director, president, chief\nexecutive officer, partner, managing partner, general partner,\nultimate partner, manager, anti-money laundering compliance\nofficer, money laundering reporting officer, deputy money\nlaundering reporting officer or a person who has a similar control\nfunction; and\n\u201csupervised person\u201d means a person that is licensed or registered by\nthe Authority under any of the other regulatory laws but is not\nlicensed or registered under this Act;\u201d;\n(b) in subsection (2) as follows \u2014\n(i)\nby deleting the words \u201ccentralised or decentralised\u201d; and\n(ii) in paragraph (a), by deleting the words \u201cwhich facilitates the\nexchange\u201d and substituting the words \u201cwhich provides a virtual asset\nservice and facilitates the exchange\u201d; and\n(c)\nby repealing subsection (3).\n3.\nAmendment of section 3 - meaning of \u201cvirtual asset service provider\u201d\n3.\nThe principal Act is amended in section 3(1), by deleting the words \u201can existing\nlicensee\u201d and substituting the words \u201ca supervised person\u201d.\n4.\nAmendment of section 4 - registration or licence required\n4.\nThe principal Act is amended as follows \u2014\n(a)\nin section 4(1)(c) by deleting the words \u201can existing licensee\u201d and\nsubstituting the words \u201ca supervised person\u201d;\n(b) in subsection (2), by inserting after the words \u201ccourse of business\u201d the\nwords \u201cand the Authority shall not grant registration, a licence or a waiver\nto a natural person\u201d; and\n(c)\nby inserting after subsection (4) the following subsection \u2014\n\u201c(5) A person who is not registered, licensed or granted a waiver under\nthis Act, including an applicant for registration, a waiver or a licence,\nshall not state, imply or convey that the person is regulated or\nauthorised by the Authority to provide virtual asset service.\u201d.\n5.\nAmendment of section 5 - fees\n5.\nThe principal Act is amended in section 5 as follows \u2014\n(a)\nby repealing subsections (1), (2) and (3) and substituting the following\nsubsections \u2014\n\nSection 6\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 8\nAct 22 of 2024\nc\n\n\u201c(1) An application for registration or a licence shall be accompanied by\nthe prescribed application fee.\n(2) On the Authority\u2019s decision to approve an application for registration\nor a licence, the Authority shall notify the applicant of its approval\nand the applicant shall pay the respective prescribed registration or\nlicence fee.\u201d;\n(b) by repealing subsection (4), and substituting the following subsection \u2014\n\u201c(4) The respective prescribed licence or registration fee shall be paid by\nthe applicant no later than thirty days after being notified by the\nAuthority of the approval of the application and where the fee is not\npaid the approval shall be cancelled by the Authority.\u201d;\n(c)\nby repealing subsection (7) and substituting the following subsections \u2014\n\u201c(6A)The Authority may publish in the Gazette a notice of lapse of licence\nor registration where either a licence or registration lapses in\naccordance with subsection (6).\n(7) The Authority may, for good cause, waive any surcharge imposed\nunder subsection (5) or administration fee under subsection (6)(c) or\nboth.\u201d; and\n(d) by inserting after subsection (8) the following subsection \u2014\n\u201c(9) The prescribed fees payable under this Act are non-refundable.\u201d.\n6.\nAmendment of section 6 - application for registration\n6.\nThe principal Act is amended in section 6 as follows \u2014\n(a)\nby repealing subsections (1) to (3) and substituting the following\nsubsections \u2014\n\u201c(1) Subject to subsection (3), a person, not being a supervised person\nwho has been granted a waiver for registration or a licence under\nsection 16, who \u2014\n(a)  at the commencement of the Virtual Asset (Service Providers)\n(Amendment) Act, 2024 is carrying on virtual asset service for\nwhich a licence is not required under this Act;\n(b)  wishes to carry on virtual asset service for which a licence is\nnot required under this Act; or\n(c)\nhas been directed by the Authority to apply for registration\nunder this Act,\nshall apply in the prescribed form to be a registered person under this\nAct and submit the application along with the prescribed assessment\nfee to the Authority.\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 6\n\nc\nAct 22 of 2024\nPage 9\n\n(2) The Authority, in determining whether to approve the application\nfrom a person in subsection (1), shall consider whether \u2014\n(a)\nthe applicant should apply instead for a virtual asset service\nlicence or a sandbox licence as the virtual asset service is one\nfor which a licence is required; or\n(b) the applicant should apply instead for registration or a licence\nunder one of the other regulatory laws.\n(2A) The Authority may impose conditions on an applicant for registration\nat the time of application or at any time thereafter, as the Authority\nmay consider appropriate having regard to the nature, risk and scale\nof the business.\n(2B) An applicant for registration shall not be registered unless the\napplicant has satisfied the Authority that the applicant\u2019s shareholders,\ndirectors and senior officers are fit and proper persons.\n(3) The Authority shall either \u2014\n(a)\nwhere it determines that the applicant is suitable to be\nregistered, register the applicant on \u2014\n(i)\nthe fulfilment of the conditions under subsection (2A)\nwhere conditions are imposed; and\n(ii) the payment of the registration fee; or\n(b) where the applicant is found to be unsuitable, refuse the\napplication for registration.\u201d; and\n(b) by repealing subsections (6) and (7) and substituting the following\nsubsections \u2014\n\u201c(6) If a registered person wishes to engage in activities for which a\nlicence is required under this Act, the Authority shall require the\nregistered person to apply for a licence and the Authority shall cancel\nthe registration if the licence is granted.\n(6A) A registered person who at the commencement of the Virtual Asset\n(Service Providers) (Amendment) Act, 2024 is engaged in an activity\nfor which a licence is required shall apply for a licence within ninety\ndays of the commencement.\n(7) A registered person shall not publicly state, imply or convey that it\nis \u2014\n(a)\nlicensed in the Islands for the provision of virtual asset custodial\nservices or the operation of a trading platform; or\n(b) otherwise licensed under this Act.\u201d.\n\nSection 7\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 10\nAct 22 of 2024\nc\n\n7.\nAmendment of section 8 - application for virtual asset service licence\n7.\nThe principal Act is amended in section 8 as follows \u2014\n(a)\nin subsection (1) as follows \u2014\n(i)\nby repealing paragraph (c) and substituting the following\nparagraph \u2014\n\u201c(c) is a supervised person conducting virtual asset services and has\nbeen directed by the Authority to obtain a virtual asset service\nlicence; or\u201d; and\n(ii) by deleting the words \u201cmay apply for\u201d and substituting the words\n\u201cshall apply for\u201d;\n(b) in subsection (2)(c) as follows \u2014\n(i)\nby deleting the words \u201capplicant to apply for a licence\u201d and substitute\nthe words \u201capplicant to apply for a licence or registration\u201d; and\n(ii) by deleting the words \u201cand for which supervision under this Act is\nnot required\u201d;\n(c)\nin subsection (4) as follows \u2014\n(i)\nby deleting the words \u201cthe matters set out in section 22 and\u201d;\n(ii) by inserting after paragraph (a) the following paragraph \u2014\n\u201c(aa) the applicant has satisfied the Authority that the applicant\u2019s\nbeneficial owners and senior officers are fit and proper\npersons;\u201d; and\n(iii) by deleting the words \u201capplication fee under section 5(3)\u201d and\nsubstituting the words \u201cprescribed application fee\u201d;\n(d) by repealing subsection (5) and substituting the following subsections \u2014\n\u201c(5) On payment of the licence fee, the Authority shall grant the licence\nand the licence shall set out the specific service that the licensee is\npermitted to carry on.\n(5A)The Authority may impose conditions on an applicant for a licence at\nthe time of application, or at any time after, as the Authority considers\nappropriate having regard to the nature, risk and scale of the\nbusiness.\u201d; and\n(e)\nin subsection (8)(a), by deleting the words \u201cregulatory requirements on a\nvirtual asset\u201d and substituting the words \u201crequirements on a virtual asset\u201d.\n8.\nAmendment of section 9 - general requirements for virtual asset service\nproviders\n8.\nThe principal Act is amended in section 9 as follows \u2014\n(a)\nby inserting after subsection (2) the following subsection \u2014\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 8\n\nc\nAct 22 of 2024\nPage 11\n\n\u201c(2A)The Authority may require a registered person to provide audited\nfinancial statements in accordance with section 31 where the\nAuthority \u2014\n(a) determines that they are required due to the nature, size or\ncomplexity of the registered person; or\n(b) has reasonable grounds for believing that the registered person\nhas provided false or misleading accounts under subsection\n(2).\u201d;\n(b) in subsection (3) as follows \u2014\n(i)\nby inserting after paragraph (a) the following paragraph \u2014\n\u201c(aa) have no less than three directors at all times including at least\none independent director without a vested interest in the virtual\nasset service provider;\u201d;\n(ii) by repealing paragraph (c) and substituting the following\nparagraphs \u2014\n\u201c(c) ensure the accuracy of all disclosures, advertising materials and\ncommunications relating to the virtual asset service with clients\nand members of the public;\u201d;\n(ca) carry on virtual asset services only in accordance with the\ninformation given in its approved application for registration,\nwaiver or a licence and in the business plan and only engage in\nthe virtual asset services for which it has been licensed,\nregistered or granted a waiver;\n(cb) seek the prior written approval of the Authority \u2014\n(i)\nto make a change to the approved business plan which\nmodifies or changes the provision of the virtual asset\nservices for which it has been granted registration or a\nlicence; or\n(ii)\nto provide additional virtual asset services which were\nnot included in the approved application or business\nplan;\u201d;\n(iii) in paragraph (d), by deleting the words \u201cproliferation financing;\u201d and\nsubstituting the words \u201cproliferation financing; and\u201d;\n(iv) in paragraph (e), by deleting the words \u201csystems and procedures;\nand\u201d and substituting the words \u201csystems and procedures.\u201d; and\n(v) by repealing paragraph (f);\n(c)\nin subsection (4)(c) as follows \u2014\n(i)\nby deleting the words \u201cnotify the Authority of\u201d and substituting the\nwords \u201cnotify the Authority within thirty days of\u201d;\n\nSection 8\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 12\nAct 22 of 2024\nc\n\n(ii) in subparagraph (ii), by deleting the words \u201cor establishing a physical\npresence\u201d and substituting the words \u201c, subsidiary, agency, branch or\nother physical presence\u201d; and\n(iii) by repealing subparagraph (iii) and substituting the following\nsubparagraph \u2014\n\u201c(iii) any penalties that are imposed or enforcement actions\ntaken against it or any litigation proceedings brought\nagainst the virtual asset service provider in this or another\njurisdiction; or\u201d;\n(d) by repealing subsection (5) and substituting the following subsection \u2014\n\u201c(5) When performing a transfer of virtual assets, a virtual asset service\nprovider shall \u2014\n(a)\ncollect and maintain information on the beneficiary and\noriginator of the transfer in accordance with the Anti-Money\nLaundering Regulations (2023 Revision);\n(b) comply with any other requirements relating to virtual asset\nservice providers set out in the Anti-Money Laundering\nRegulations (2023 Revision); and\n(c)\ncollect and retain any information regarding the beneficiary and\noriginator or take any additional measures regarding the virtual\nasset transfer as may be specified by the Authority,\nand the records shall \u2014\n(i) be made available, at the request of the Authority or any\ncompetent authority, through the virtual asset service\nprovider\u2019s registered office; and\n(ii) where a request for information is made under\nsubparagraph (i), be provided by the virtual asset service\nprovider within forty-eight hours of receipt of the\nrequest.\u201d;\n(e)\nin subsection (7), by deleting the words \u201cto ensure compliance with the\nAnti-Money Laundering Regulations (2023 Revision)\u201d; and\n(f)\nby repealing subsections (8) and (9) and substituting the following\nsubsections \u2014\n\u201c(8) A virtual asset service provider shall not appoint a senior officer or\ntrustee without the prior approval of the Authority.\n(9) The Authority shall not grant the approval specified in subsection (8)\nwhere a senior officer or trustee is not a fit and proper person.\n(9A) Approval granted under subsection (8) \u2014\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 9\n\nc\nAct 22 of 2024\nPage 13\n\n(a)\nlapses if the senior officer or trustee becomes bankrupt or\nis convicted of an offence involving dishonesty; and\n(b) may be revoked by the Authority where the Authority has\nsufficient cause to believe that the senior officer or trustee\nis no longer able to perform the functions required by the\nappointment.\n(9B) A virtual asset service provider who knowingly makes, issues or\npermits to be made or issued any representation about or description\nof the provider\u2019s virtual asset activities in any form or by any method\nthat is misleading to the public commits an offence.\u201d.\n9.\nAmendment of section 10 - requirements: virtual asset custody services\n9.\nThe principal Act is amended in section 10 as follows \u2014\n(a)\nin subsection (1) as follows \u2014\n(i)\nby repealing paragraph (c) and substituting the following\nparagraph \u2014\n\u201c(c) disclosures to clients concerning \u2014\n(i)\nthe transparency of operations including the risks\nassociated with custodial arrangements;\n(ii) internal safeguards;\n(iii) the methods of access to virtual assets held;\n(iv) insurance arrangements;\n(v) regulatory obligations;\n(vi) grievance procedures;\n(vii) third party sharing of clients\u2019 information; and\n(viii) internal custodial governance arrangements including\nsafeguards;\u201d;\n(ii) in paragraph (d), by deleting the words \u201ccybersecurity measures;\nand\u201d and substituting the words \u201ccybersecurity measures;\u201d;\n(iii) by inserting after paragraph (d) the following paragraphs \u2014\n\u201c(da)requirements for the manner in which virtual assets are held and\nmaintained on behalf of clients, including any necessary\narrangements regarding the safe custody of virtual assets;\n(db)requirements for the provision of products and services which\nderive their value from underlying virtual assets; and\u201d; and\n(b) in subsection (3) as follows \u2014\n(i)\nin paragraph (c), by deleting the words \u201cproceeds relating to\u201d and\nsubstituting the words \u201cproceeds or tangible benefits relating to\u201d; and\n\nSection 10\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 14\nAct 22 of 2024\nc\n\n(ii) by repealing paragraphs (d) and (e) and substituting the following\nparagraphs \u2014\n\u201c(d) where a licensee holds fiat currency on behalf of a client, hold\nthe fiat currency in a bank regulated by the Authority or another\nregulator in a non high-risk jurisdiction in a manner where the\nfiat currency is segregated from any fiat currency owned by the\nlicensee;\n(e)\ntake steps as may be necessary to safeguard the virtual assets\nheld on behalf of third parties including where virtual assets are\nheld on behalf of the virtual asset service licensee by third\nparties;\n(f)\nhave adequate safeguards, including safeguards against theft\nand loss;\n(g) maintain accurate and up-to-date records and accounts of client\nassets that readily establish the precise nature, amount, location\nand ownership status of client assets and the clients for whom\nthe assets are held; and\n(h) segregate client assets from proprietary assets and the assets of\nany affiliate or a virtual asset service provider held by the\nlicensee, and place client assets in trust or in segregated\nbankruptcy remote accounts (or provide equivalent protection\nthrough legal or accounting mechanisms recognised in the\nrelevant jurisdiction) so that client assets are separate and\ndistinct from the licensee\u2019s own assets or estate.\u201d.\n10.\nRepeal of section 13 - directions to apply for licence under this Act\n10. The principal Act is amended by repealing section 13.\n11.\nRepeal and substitution of sections 14 and 15 - directions to apply for a\nlicence under another regulatory law; notice by existing licensee\n11. The principal Act is amended by repealing sections 14 and 15 and substituting the\nfollowing sections \u2014\n\u201cDirections to apply for licence or registration under another\nregulatory law\n14. (1) The Authority shall require a virtual asset service provider registered\nor licensed under this Act to apply for a licence or registration under\nany of the other regulatory laws, where the virtual asset service\nprovider is carrying on financial services business \u2014\n(a)\nthat is materially similar to financial services business for which\nthere is a licensing or registration regime under any of the other\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 11\n\nc\nAct 22 of 2024\nPage 15\n\nregulatory laws that provides sufficient oversight and\nsupervision for that financial services business; or\n(b) that requires additional oversight that is provided for in a\nlicensing or registration regime under the other regulatory laws.\n(2) On approval of a licence or registration under any of the other\nregulatory laws in respect of a virtual asset service provider carrying\non financial services business referred to in subsection (1)(a), the\nAuthority shall cancel the registration or revoke the licence under this\nAct and waive the requirement for registration or a licence under this\nAct in accordance with section 15.\n(3) Where a virtual asset service provider is carrying on financial\nservices business referred to in subsection (1)(b), the licence or\nregistration approved under any of the other regulatory laws is in\naddition to the licence or registration under this Act.\n\nApplication by supervised person\n15. (1) A supervised person who wishes to carry on virtual asset service shall\napply to the Authority, in the manner specified by the Authority, for\nany of the following \u2014\n(a)\na virtual asset service licence;\n(b) registration; or\n(c)\na waiver of licensing or registration requirements under this Act\nin accordance with section 16,\nsetting out in detail the nature and scope of the virtual asset service\nthat the supervised person wishes to carry on.\n(2) The supervised person shall provide any additional information as\nthe Authority considers necessary in order for it to make a\ndetermination under this section.\n(3) An application under this section is not required where the supervised\nperson is carrying on virtual asset activities that involve virtual\nservice tokens only.\n(4) In making a determination regarding an application under this\nsection, the Authority may \u2014\n(a)\ngrant or deny the licence or registration as requested;\n(b) grant or deny the waiver as requested; or\n(c)\ndirect the supervised person to apply for a licence or registration\nunder one of the other regulatory laws.\n(5) A supervised person shall comply with any relevant provisions of this\nAct as the Authority may require.\n\nSection 12\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 16\nAct 22 of 2024\nc\n\n(6) A supervised person who fails to make an application under this\nsection while carrying on virtual asset service commits an offence\nand is liable on summary conviction to a fine of fifty thousand\ndollars.\u201d.\n12.\nAmendment of section 16 - waiver\n12. The principal Act is amended in section 16 as follows \u2014\n(a)\nby deleting the words \u201can existing licensee\u201d wherever they appear and\nsubstituting the words \u201ca supervised person\u201d;\n(b) by deleting the words \u201cthe existing licensee\u201d wherever they appear and\nsubstituting the word \u201cthe supervised person\u201d;\n(c)\nin subsection (2), by deleting the words \u201cprovided in the notice\u201d and\nsubstituting the words \u201cprovided in the application\u201d; and\n(d) by inserting after subsection (3) the following subsection \u2014\n\u201c(4) The Authority may revoke a waiver granted under this Act where it\nis of the opinion that \u2014\n(a)\nthe supervised person has failed to comply with any\nconditions imposed by the Authority;\n(b) the virtual asset service provided by the supervised person\nhas changed materially and requires registration or a\nlicence under this Act; or\n(c)\nthere is a change in size, scope, risk or complexity of the\nbusiness operations and requires registration or a licence\nunder this Act.\u201d.\n13.\nAmendment of section 19 - application for a sandbox licence\n13. The principal Act is amended in section 19 as follows \u2014\n(a)\nin subsection (1)(b)(ii), by deleting the words \u201cexisting licensees\u201d and\nsubstituting the words \u201csupervised persons\u201d;\n(b) in subsection (4), by deleting the words \u201cAn existing licensee\u201d and\nsubstituting the words \u201cA supervised person\u201d;\n(c)\nin subsection (5), by deleting the words \u201capplication fee as may be\n\nspecified by the Authority\u201d and substituting the words \u201cprescribed\napplication fee\u201d;\n(d) in subsection (6), by deleting the words \u201csandbox application fee\u201d and\nsubstituting the words \u201csandbox licence fee\u201d; and\n(e)\nin subsection (8), by deleting the words \u201cthe matters set out in section 22\u201d\nand substituting the words \u201cthe fintech service and its probable effects on\nfinancial services business\u201d.\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 14\n\nc\nAct 22 of 2024\nPage 17\n\n14.\nRepeal of Part 4 - decisions to licence, register, approve issuances\n14. The principal Act is amended by repealing Part 4.\n15.\nAmendment of section 24 - powers and duties of the Authority\n15. The principal Act is amended in section 24 as follows \u2014\n(a)\nin subsection (1)(c), as follows \u2014\n(i)\nin subparagraph (iii), by deleting the words \u201ca licensee is\u201d and\nsubstituting the words \u201ca virtual asset service provider is\u201d; and\n(ii) in subparagraph (iv), by deleting the words \u201cwhether a licensee\u2019s\u201d\nand substituting the words \u201cwhether a virtual asset service\nprovider\u2019s\u201d;\n(b) by inserting after subsection (2) the following subsections \u2014\n\u201c(2A)In the performance of its functions under this Act, the Authority may,\nat all reasonable times, request \u2014\n(a)\nany information, matter or thing from any person whom the\nAuthority has reasonable grounds to believe is carrying on\nvirtual asset service in contravention of this Act; and\n(b) access to view and to make copies of any books, records,\ndocuments, cash, virtual assets or securities,\nas the Authority may reasonably require for the performance of its\nfunctions under this Act.\n(2B) The Authority may require a supervised person whom the Authority\nhas reasonable grounds to believe is conducting virtual asset services\nin contravention of this Act to grant access in order that it may view\nand make copies of any books, records and documents, cash, virtual\nassets and securities.\n(2C) For the purpose of performing its duties under subsection (1)(b), the\nAuthority may authorise, in writing, a person with the requisite\ntechnical expertise to examine the affairs or business of a licensee,\nregistered person or other person carrying on virtual asset services\nand to report to the Authority the results of the examination.\n(2D) The Authority, in the performance of its functions, is entitled to\naccess at reasonable times the necessary books and records and to\nrequest any information or thing from any person as may be\nreasonably required to enable the Authority to perform its functions.\n(2E) The Authority may charge a fee for the performance of its functions\nunder subsection (1)(c) such fee being commensurate with the nature,\nsize and complexity of the virtual asset service provider.\u201d; and\n(c)\nby repealing subsection (4).\n\nSection 16\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 18\nAct 22 of 2024\nc\n\n16.\nAmendment of section 25 - enforcement powers of the Authority\n16. The principal Act is amended in section 25 as follows \u2014\n(a)\nin subsection (3) as follows \u2014\n(i)\nby repealing paragraph (a) and substituting the following\nparagraph \u2014\n\u201c(a) revoke a virtual asset service licence, a sandbox licence, a\nwaiver or cancel a registration;\u201d;\n(ii) in paragraph (b), by deleting the words \u201cupon the licence\u201d and\nsubstituting the words \u201con the licence, registration or waiver\u201d;\n(iii) by repealing paragraph (j) and substituting the following\nparagraph\u2014\n\u201c(j) at the expense of the virtual asset service provider, appoint a\nperson to advise the virtual asset service provider on the proper\nconduct of its affairs and to report to the Authority on the\nappointment; or\u201d; and\n(iv) in paragraph (k) as follows \u2014\n(A) by deleting the words \u201cthe licensee\u201d and substituting the words\n\u201cthe virtual asset service provider\u201d; and\n(B) by deleting the words \u201cthe licensee\u2019s\u201d and substituting the\nwords \u201cthe virtual asset service provider\u2019s\u201d;\n(b) in subsection (4)(d), by deleting the words \u201cthe licensee\u2019s right\u201d and\nsubstituting the words \u201cthe virtual asset service provider\u2019s right\u201d;\n(c)\nin subsection (5), by deleting the words \u201cof the licensee\u201d and substituting\nthe words \u201cof the virtual asset service provider\u201d; and\n(d) in subsection (6), by repealing paragraph (d) and substituting the following\nparagraph \u2014\n\u201c(d) revoke the licence or cancel the registration and apply to the\ncourt for an order that the virtual asset service provider, if it\nis \u2014\n(i)\na company, be wound up by the court and, in the event of\nthe winding up, the provisions of the Companies Act\n(2023 Revision) relating to the winding up of a company\nshall apply;\n(ii) a general partnership or a limited partnership, be wound\nup by the court and, in the event of the winding up the\nprovisions of the Partnership Act (2024 Revision) relating\nto the winding up of a general partnership or a limited\npartnership shall apply;\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 17\n\nc\nAct 22 of 2024\nPage 19\n\n(iii) a limited liability partnership be wound up by the court\nand, in the event of the winding up, the relevant provisions\nof the Limited Liability Partnership Act  (2023 Revision)\nshall apply;\n(iv) an exempted limited partnership be wound up by the court\nand, in the event of the winding up, the relevant provisions\nof the Exempted Limited Partnership (2021 Revision)\nshall apply; or\n(v) a limited liability company be wound up by the court and,\nin the event of the winding up, the relevant provisions of\nthe Limited Liability Companies Act (2023 Revision) shall\napply;\u201d.\n17.\nAmendment of section 26 - direction to cease and desist\n17. The principal Act is amended in section 26 as follows \u2014\n(a)\nin subsection (1) as follows \u2014\n(i)\nin paragraph (a), by deleting the words \u201cservice provider; or\u201d and\nsubstituting the words \u201cservice provider;\u201d;\n(ii) in paragraph (b), by deleting the words \u201cservice provider,\u201d and\nsubstituting the words \u201cservice provider; or\u201d; and\n(iii) by inserting after paragraph (b) the following paragraph \u2014\n\u201c(c) registered or granted a waiver and does not hold a licence but is\npublicly stating, implying or conveying that it is licensed in\naccordance with this Act,\u201d;\n(b) by inserting after subsection (1) the following subsection \u2014\n\u201c(1A) Where the Authority has determined that a person is engaged in\nvirtual asset services without a licence or registration or a waiver\nunder this Act, or is otherwise in contravention of this Act, the\nAuthority may direct the person to cease and desist from carrying out\nthe activity which is in contravention of this Act.\u201d;\n(c)\nin subsection (2), by deleting the words \u201cby the Authority under subsection\n(1)\u201d and substituting the words \u201cby the Authority under subsection (1) or\n(1A)\u201d; and\n(d) by repealing subsection (3).\n18.\nAmendment of section 27 - revocation of licence\n18. The principal Act is amended in section 27 as follows \u2014\n(a)\nby deleting the section heading and substituting the following section\nheading \u2014\n\u201cRevocation of licence or cancellation of registration\u201d;\n\nSection 19\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 20\nAct 22 of 2024\nc\n\n(b) by repealing subsection (1) and substituting the following subsection \u2014\n\u201c(1) The Authority may revoke a virtual asset service licence, revoke a\nsandbox licence, revoke a waiver, cancel a registration or cancel the\napproval for a virtual asset issuance where it is of the opinion that \u2014\n(a)\nthe virtual asset service provider has failed to comply with an\nobligation imposed on it by this Act;\n(b) the virtual asset service provider is carrying on business in a\nmanner that is not permitted by the licence or the conditions of\nits registration or the conditions of the waiver;\n(c)\nthe Authority has been provided with false, misleading or\ninaccurate information by or on behalf of the virtual asset\nservice provider or a person who is a senior officer or trustee of\nthe virtual asset service provider;\n(d) the interests of the clients or potential clients of the virtual asset\nservice provider are threatened; or\n(e)\nthe virtual asset service provider has contravened the AntiMoney Laundering Regulations (2023 Revision).\u201d; and\n(c)\nin subsection (2), by deleting the words \u201cit shall publish\u201d and substituting\nthe words \u201cit may publish\u201d.\n19\nAmendment of section 28 - shares not to be issued or transferred without\nthe prior approval of the Authority\n19. The principal Act is amended in section 28(4) as follows \u2014\n(a)\nby deleting the words \u201ca legal person\u201d and substituting the words \u201ca\ncompany or partnership\u201d; and\n(b) by deleting the words \u201cthe legal person or legal arrangement\u201d and\nsubstituting the words \u201cthe company or partnership\u201d.\n20.\nAmendment of section 30 - appeals against decisions made by the Authority\n20. The principal Act is amended in section 30(1) by repealing paragraph (f) and\nsubstituting the following paragraph \u2014\n\u201c(f) for refusal of a waiver under section 16 for a supervised person to engage\nin virtual asset service.\u201d.\n21.\nAmendment of section 31 - audit of accounts\n21. The principal Act is amended in section 31 as follows \u2014\n(a)\nby repealing subsections (1) and (2) and substituting the following\nsubsections \u2014\n\u201c(1) Every licensee or registered person which has been directed to\nprovide audited financial statements under section 9(2A) shall have\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 22\n\nc\nAct 22 of 2024\nPage 21\n\nits accounts audited annually or at such other times as the Authority\nmay require by an auditor who shall be a chartered accountant,\ncertified public accountant or other professionally qualified\naccountant approved by the Authority.\n(2) The audited accounts shall be forwarded to the Authority within six\nmonths after the end of the financial year of the licensee or registered\nperson under subsection (1) unless prior written approval for an\nextension has been granted by the Authority.\n(2A) A licensee or registered person under subsection (1) shall forward to\nthe Authority consolidated accounts in respect of the parent\nundertaking of the group of which the licensee or registered person\nunder subsection (1) is a member within three months after the end\nof the financial year of the parent undertaking of the group unless\nprior written approval for an extension has been granted by the\nAuthority.\u201d;\n(b) in subsection (3), as follows \u2014\n(i)\nby deleting the word \u201clicensee\u201d wherever it appears and substituting\nthe words \u201clicensee or registered person under subsection (1)\u201d; and\n(ii) by deleting the words \u201ccomply with subsection (2)\u201d and substituting\nthe words \u201ccomply with subsection (2) or (2A)\u201d;\n(c)\nby repealing subsection (4);\n(d) in subsection (5), by deleting the word \u201clicensee\u201d and substituting the\nwords \u201clicensee or registered person under subsection (1)\u201d; and\n(e)\nby repealing subsections (6) and (7) and substituting the following\nsubsections \u2014\n\u201c(6) If it appears to the Authority that an auditor has failed to comply with\nthe requirements in section 32(1), the Authority may disqualify the\nauditor from being an auditor of a licensee or registered person under\nsubsection (1).\n(6A) The Authority may remove any disqualification imposed under\nsubsection (6) if it is satisfied that the person in question will in future\ncomply with the requirements in section 32(1).\n(7) A licensee or a registered person under subsection (1) shall not\nappoint as an auditor a person disqualified under subsection (6).\u201d.\n22.\nAmendment of section 32 - duty of auditor\n22. The principal Act is amended in section 32 as follows \u2014\n(a)\nin subsection (1) as follows \u2014\n\nSection 23\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 22\nAct 22 of 2024\nc\n\n(i)\nin paragraph (c), by deleting the words \u201cor creditors; or\u201d and\nsubstituting the words \u201cor creditors;\u201d;\n(ii) in paragraph (d), by deleting the words \u201cproduce a report,\u201d and\nsubstitute the words \u201cproduce a report; or\u201d;\n(iii) by inserting after paragraph (d), the following paragraph \u2014\n\u201c(e) is carrying on or attempting to carry on business in a fraudulent\nor criminal manner,\u201d; and\n(iv) by deleting the words \u201cthe auditor shall immediately give the\nAuthority and the licensee\u201d and substituting the words \u201cthe auditor\nshall, subject to subsection (1A), immediately give the Authority, the\nlicensee and the registered person\u201d;\n(b) by inserting after subsection (1) the following subsection \u2014\n\u201c(1A)Written notice under subsection (1) shall only be given to the\nlicensee or the registered person if the notice does not impede the\nobligations of the auditor.\u201d; and\n(c)\nby inserting after subsection (5) the following subsection \u2014\n\u201c(6) A person who contravenes subsection (1) commits an offence and is\nliable on summary conviction to a fine of twenty thousand dollars.\u201d.\n23.\nRepeal and substitution of section 33 - entry and search of premises\n23. The principal Act is amended by repealing section 33 and substituting the following\nsection \u2014\n\u201cEntry and search of premises\n33. (1) If a magistrate is satisfied by information on oath, given by the\nAuthority or by a person authorised under section 24(2C) to assist the\nAuthority, that either \u2014\n(a)\nthere is reasonable ground for believing that an offence against\nthis Act, the Proceeds of Crime Act (2024 Revision), the AntiMoney Laundering Regulations (2023 Revision), or the\nBeneficial Ownership Transparency Act, 2023, has been or is\nbeing committed and that evidence of the commission of the\noffence is to be found at any premises, or in any electronic\ndevice, platform or computer specified in the information; or\n(b) books, records, vouchers, documents, cash, virtual assets or\nsecurities which ought to have been produced under section\n24(2A) and have not been produced are to be found at any\npremises or in any electronic device, platform or computer\nspecified in the information,\n\nVirtual Asset (Service Providers) (Amendment) Act, 2024\nSection 24\n\nc\nAct 22 of 2024\nPage 23\n\nthe magistrate may authorise the Authority, a person authorised\nunder section 24(2C) or any constable of the rank of Inspector or\nabove, together with any other person named in the warrant and any\nother constables, to enter the premises specified in the information in\nwhich the electronic device or platform or computer so specified may\nbe, at any time within one month from the date of the warrant, and to\nsearch the premises, electronic device, platform or computer.\n(2) The person authorised by the warrant under subsection (1) to conduct\na search may \u2014\n(a)\nsearch every person who is found in, or whom that person has\nreasonable grounds to believe to have recently entered or is\nabout to enter, the premises or had access to the electronic\ndevice, or platform or computer; and\n(b) may seize any books, records, vouchers, documents, cash,\nvirtual assets or securities \u2014\n(i)\nin the possession of any person referred to in paragraph\n(a);\n(ii) in the premises specified in the information; or\n(iii) stored on an electronic device, platform or computer,\nwhich the person authorised by the warrant has reasonable\ngrounds for believing ought to have been produced under\nsection 24(2A).\n(3) Where under this section a person has any power to enter any\npremises that person may use such force as is reasonably necessary\nfor the purpose of exercising that power.\n(4) A person who obstructs the Authority or any other person in the\nexercise of any powers conferred on it or that person under this\nsection commits an offence and is liable on summary conviction to a\nfine of ten thousand dollars or to imprisonment for one year, or to\nboth.\n(5) For the purposes of this section, \u201cpremises\u201d includes any vehicle,\nvessel or aircraft.\u201d.\n24.\nAmendment of section 39 - regulations\n24. The principal Act is amended in section 39 by deleting the words \u201cfinancial service\nbusiness\u201d wherever it appears and substituting the words \u201cfinancial services\nbusiness\u201d.\n\nSection 25\nVirtual Asset (Service Providers) (Amendment) Act, 2024\n\nPage 24\nAct 22 of 2024\nc\n\n25.\nGeneral amendments to the Virtual Asset (Service Providers) Act (2024\nRevision)\n25. The Virtual Asset (Service Providers) Act (2024 Revision), in this Act referred to as\nthe \u201cprincipal Act\u201d, is amended as follows \u2014\n(a)\nby deleting the cross-heading \u201cDirections to apply for licence\u201d that\nappears after section 12 and substituting the cross-heading \u201cDirections to\napply for licence or registration\u201d;\n(b) by deleting the cross-heading \u201cExisting licensee\u201d that appears after\nsection 14 and substituting the cross-heading \u201cSupervised person\u201d;\n(c)\nby deleting the words \u201capplication fee\u201d wherever they appear and\nsubstituting the words \u201clicensing or registration fee\u201d; and\n(d) by deleting the words \u201cassessment fee\u201d wherever they appear and\nsubstituting the words \u201capplication fee\u201d.\n26.\nTransitional\n26. Notwithstanding section 5 of this amending Act, the fee for an application for which\na decision is pending on the day immediately preceding the commencement of this\namending Act shall be refundable.\nPassed by the Parliament the 11th day of December, 2024.\nHon. Sir Alden McLaughlin\nSpeaker\nZena Merren-Chin\nClerk of the Parliament","akn_extracted_at":"2026-06-22 15:43:55.237498+00","cms_id":"2024-0022","law_type":"amending","year":"2024","number":"22","title":"Virtual Asset (Service Providers) (Amendment) Act, 2024 (Act 22 of 2024)","status":"in_force"},"provenance":{"files":[{"file_id":"6507","expr_id":"1667","kind":"akn_xml","filename":"2024-0022.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2024\/2024-0022\/2024-0022.akn.xml","content_md5":"f5184f3ce13d0ff9c02684aeb6220f93","byte_size":"47184","http_last_modified":null,"fetched_at":"2026-06-22 15:43:55.360606+00"},{"file_id":"3333","expr_id":"1667","kind":"pristine_pdf","filename":"2024-0022.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2024\/2024-0022\/2024-0022.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/AMENDING\/2024\/2024-0022\/2024-0022.pdf","content_md5":"b745d461bd5c35df25f9886ede75ea6a","byte_size":"455045","http_last_modified":null,"fetched_at":"2026-06-21 23:09:38.403983+00"},{"file_id":"3334","expr_id":"1667","kind":"working_pdf","filename":"2024-0022.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2024\/2024-0022\/2024-0022.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2024\/2024-0022\/2024-0022.pdf","content_md5":"b745d461bd5c35df25f9886ede75ea6a","byte_size":"455045","http_last_modified":null,"fetched_at":"2026-06-21 23:09:38.403983+00"}],"paragraph_count":19,"latest_history":null},"quality":{"expr_id":"1667","doc_id":"1667","quality_state":"needs_review","quality_score":"80","needs_human_review":"t","deterministic_categories":"{commencement_metadata_problem,duplicate_text,page_header_footer_noise}","llm_categories":"{}","repair_actions":"{collapse_duplicate_text,strip_page_furniture,verify_commencement_metadata}","finding_severity_counts":"{\"low\": 2, \"medium\": 1}","finding_summary":"repeated line furniture detected: cayman islands x3; virtual asset service providers x3; amendment act 2024 x3; duplicate-line ratio is 10.11%","assessed_at":"2026-06-22 15:29:46.704994+00","updated_at":"2026-06-22 15:29:46.704994+00"}}