The Cayman Virtual Asset (Service Providers) Act, 2020 (as amended) (the VASP Act) sets out a full regulatory registration and (from July 2021) licensing regime for virtual asset service providers (VASPs). The VASP Act implements Recommendation 15 (New technologies) of the Financial Action Task Force (FATF) on international standards on combating money laundering and the financing of terrorism and proliferation, together with the FATF’s “Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers” (the FATF Guidance). The Cayman Islands Government has introduced the VASP Act, together with amendments to a range of other Cayman Islands laws and regulations (such as the Securities Investment Business Act (2021 Revision), the Proceeds of Crime Act (2020 Revision) and the Anti-Money Laundering Regulations (2020 Revision) (as amended)), to ensure consistent recognition and treatment of VASPs and business activities involving virtual assets, particularly in relation to anti-money laundering compliance obligations.