Crypto.com Secures First VASP License Under New Cayman Regime

Crypto.com has become the first digital asset platform to receive conditional approval for a Virtual Asset Service Provider (VASP) license from the Cayman Islands Monetary Authority (CIMA). The exchange confirmed the authorization on Monday, marking the first major regulatory clearance under the jurisdiction's stricter oversight framework implemented last year.

Markets reacted mildly to the news, with Cronos (CRO) trading near $0.11 (+3%) as volume held steady.

Phase Two Compliance

The approval validates Crypto.com's transition from a registered entity to a licensed operator. In April 2025, the Cayman Islands activated "Phase Two" of its VASP Act, forcing crypto service providers to upgrade from simple registration to a full licensing regime. The new statutes mandate higher capital reserves, rigorous anti-money laundering (AML) controls, and enhanced governance structures.

While Crypto.com has maintained a registration in the Cayman Islands since August 2022, this conditional license sets a precedent for how CIMA will evaluate institutional-grade platforms under the tighter 2025 rules. The exchange expects full authorization in the coming months upon satisfying final procedural conditions.

"We are tremendously proud to be our industry’s leader in licenses and registrations, and to now be the first digital asset firm to receive this approval in the Cayman Islands.", Kris Marszalek, CEO of Crypto.com

Institutional Implications

The Cayman Islands remains a critical domicile for global hedge funds and institutional capital. By securing the first VASP license under the new regime, Crypto.com positions its exchange product as the compliant on-ramp for Cayman-domiciled funds seeking exposure to digital assets.

This move aligns with a broader industry trend where liquidity providers are migrating toward jurisdictions that offer clear, statutory licensing over ambiguous "registration-only" statuses. Competitors operating in the region without this upgraded license may face operational headwinds as CIMA enforces the Phase Two deadline.