Section 8Part 2 — Registered Persons and Virtual Asset Service Licensees
Application for virtual asset service licence
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A person who —
wishes to provide virtual asset custody services or wishes to operate a virtual asset trading platform;
at the commencement of this Act is providing or operating any of the services referred to in paragraph (a); Virtual Asset (Service Providers) Act (2024 Revision) Section 8
is an existing licensee under this Act and has been directed by the Authority to obtain a virtual asset service licence; or
is providing virtual asset service and has been directed by the Authority to obtain a virtual asset service licence, may apply for a virtual asset service licence in the prescribed form.
The Authority shall, in relation to an application received under subsection (1), either —
grant a virtual asset service licence;
direct the applicant to apply for a sandbox licence in accordance with section 19(1);
direct the applicant to apply for a licence under one of the other regulatory laws where the virtual asset service is similar in nature to a service for which registration or a licence is required under another regulatory law and for which supervision under this Act is not required; or
refuse the application to grant the licence.
An application under this section shall include such information as may be prescribed and any additional information as may be specified by the Authority that enables it to make a determination and the application shall be accompanied by the prescribed assessment fee.
The Authority in determining whether to approve the application from a person in subsection (1), shall consider the matters set out in section 22 and whether —
an approval of the application is against the public interest;
the applicant has —
personnel with the necessary skills, knowledge and experience;
facilities, books, records and accounting systems;
adequate capital and cybersecurity measures, as the Authority considers appropriate having regard to the size, scope and complexity of the business; and
the applicant has complied with such other requirements under this Act for which the Authority requests the applicant ’s compliance, and where the Authority is satisfied, it shall notify the applicant of its approval of the application and the application fee under section 5(3).
On payment of the application fee, the Authority shall grant the licence to the applicant and the licence shall set out the specific service under subsection (1) that the licensee is permitted to carry on.
Where the Authority has granted a licence under this section, it shall, as soon as reasonably possible after the grant, publish notification of such grant in the Gazette. Section 9 Virtual Asset (Service Providers) Act (2024 Revision)
Where an application for a licence has not been approved, the Authority shall notify the applicant of its decision and the reasons therefor.
The Authority may impose —
regulatory requirements on a virtual asset service licensee as the Authority considers necessary based on —
its assessment of the virtual asset service provided by the licensee;
the nature of the supervision required for the virtual asset service;
the safety and soundness of the method by which the virtual asset service is offered to the public; or
where applicable, any licence held under another regulatory law; and
further restrictions or prohibitions on the use of technology or practices that, in the opinion of the Authority, may disrupt or prejudice —
the functions of the Authority;
the interests of the public; or
the financial services in the Islands.
The Authority shall maintain a current register of licensees setting out the business address of the licensee and details of the activities that the licensee is permitted to carry on and such other information as may be prescribed.
A licensee or an applicant for a licence shall notify the Authority within fifteen days of any changes to the information provided under subsection (3) that occurs after submission of the application.