Section 20Part 2 — Registered Persons and Virtual Asset Service Licensees
Compliance with applicable requirements
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Subject to subsection
, a sandbox licensee that is a virtual asset service provider shall comply with all requirements applicable to virtual asset service providers in this Act . (2) The Authority, where it grants a sandbox licence, may —
impose any of the requirements that are applicable to a virtual asset service licensee;
impose restrictions that the Authority considers necessary to effectively supervise, monitor and assess the virtual asset service or fintech service and such restrictions may relate to —
the technologies or activities that may be provided;
a limit on the number or type of clients to whom the virtual asset service or fintech service may be offered;
a limit on the value or amount of virtual asset service or fintech service offered to clients;
the imposition of reporting requirements at such intervals as the Authority may require;
restrictions on the sandbox licensee’s advertising ; or
requirements for disclosures to be made to clients;
exempt the sandbox licensee from requirements that are applicable to virtual asset service providers or modify any requirement in such manner as the Authority considers appropriate;
require that specified technical or operational functions relating to the fintech service or the virtual asset service be maintained in the Islands to facilitate the supervision of the service by the Authority; or
require a sandbox licensee who is a virtual asset service provider to comply with the requirement under section 31(1), and every imposition, exemption or modification by the Authority shall be in writing.
Where a requirement is imposed or an exemption or a modification is granted under subsection (2), the Authority may impose such conditions that it considers appropriate.
The Authority shall not impose a requirement or grant an exemption or modification under subsection (2) unless it is satisfied that it is appropriate to do so. Virtual Asset (Service Providers) Act (2024 Revision) Section 21
The Authority may remove a requirement, revoke an exemption or vary any modification granted under this section and shall notify the sandbox licensee in writing of its decision and the reason for its decision.
Notwithstanding its powers under subsection (2), the Authority may, where it has made a determination, take any action necessary, where the Authority is of the opinion that the action is necessary for the protection of clients or potential clients and in the interest of the public.
Before taking any such action under subsection (6), the Authority shall notify the sandbox licensee, in writing, of the actions to be taken and provide its reasons for pursuing such action.
A sandbox licensee served with a notice under subsection (7) may, within a period of twenty-eight days from the date of the receipt of the notice, make written representations to the Authority and where such representations are made, the Authority shall take them into account in deciding whether to take the proposed action but the Authority shall not be prevented from taking action before the written representations are made.
Where a licensed fintech service provider refers to its licence in any material that is published, distributed or otherwise made available to the public, the fintech service provider is required to state that the licence is a sandbox licence under this Act .