The framework consists of two phases, the first, which began on Oct. 31, focuses on anti-money laundering (AML) practices and countering financing terrorism (CFT). VASPs currently working in, and hoping to work in, the Caymans must register with the Cayman Islands Monetary Authority (CIMA), the release stated.
The ministry’s AML and CFT policies incorporate the suggested policies set by the Financial Action Task Force (FATF) and will be monitored by the Caribbean Financial Action Task Force (CFATF). During phase one, VASPs will have to demonstrate their compliance with these standards, according to the release.
The financial ministry expects to kick off phase two, regarding licensing requirements, in June 2021, the release stated.
In other news, the Reserve Bank of Australia (RBA) is exploring the potential of a central bank digital currency (CBDC), in partnership with the National Australia Bank, Commonwealth Bank, Perpetual Limited and ConsenSys Software, the bank announced in a press release.
Their research will begin with a proof-of-concept for a CBDC operated on distributed ledger technology (DLT) to test the proposed coins’ use cases in payment settlements, the release stated.
“With this project we are aiming to explore the implications of a CBDC for efficiency, risk management and innovation in wholesale financial market transactions,” said Assistant Governor of the Financial System Michele Bullock in the release.
RBA expects to finish the project at the end of this year.
And, Huobi Group expanded its support for cryptocurrency purchases via Visa and Mastercard on Huobi Global, its digital asset exchange, now allowing cardholders to access a seamless fiat-to-crypto gateway.
The update, announced in a press release, allows for direct purchases on the exchange, whereas users were previously required to complete know your customer (KYC) onboarding through Huobi Gibraltar, a separate platform.
“By removing an extra step in the user journey, we’re creating a frictionless experience that makes it incredibly easy for anyone to buy crypto without leaving our exchange,” said Ciara Sun, vice president of Global Business at Huobi Group, in the release.