Investors can easily open a cryptocurrency company in Cayman Islands, given the country’s easy company set up process and the fact that it welcomes foreign investments. A crypto exchange license in Cayman Islands is in place under the law that governs virtual assets service providers.
Entrepreneurs who wish to benefit from the advantages of incorporating in the Islands can reach out to our Cayman Islands company formation specialists for complete assistance during the set-up process. Our team is able to answer any questions concerning incorporation. We also provide virtual office services.
| Quick Facts | |
|---|---|
| Cryptocurrency seen as legal tender (Yes/No) | No |
|
Local regulatory agency |
The Cayman Islands Monetary Authority (CIMA) |
|
Special licenses for those who open a cryptocurrency company in Cayman Islands |
When the digital assets are considered securities |
| Special licenses for crypto exchanges in Cayman Islands |
Subject to licensing from CIMA for money services business |
| Anti-money laundering rules |
Anti-Money Laundering Regulations, commonly referred to as the AML Laws |
| Special requirements for investors who open a cryptocurrency company in Cayman Islands |
– the special requirements for anti-money laundering relevant in the context of operating with digital assets, – other specific requirements, such as those for organizing an initial coin offering (ICO) |
| Residency requirements for investors |
No |
| Types of companies used by those who open a cryptocurrency company in Cayman Islands | The exempt company is commonly used
|
| Minimum capital for a cryptocurrency company in Cayman Islands |
There is no prescribed minimum capital |
| Minimum number of shareholders |
1 |
| Minimum number of directors | 1 |
| Business license |
The business registration license issued by the Companies Register |
| Mandatory requirements for the cryptocurrency company |
Compliance with the CIMA requirements and the AML Laws |
| Cryptocurrency company taxation |
No corporate income tax applies |
| Reasons to open a cryptocurrency company in Cayman Islands |
– tax neutrality, – full foreign ownership, – straightforward company creation, – minimum requirements for incorporation as well as corporate management, – no stringent cryptocurrency regulations |
Table of Contents
General requirements for investors who open a cryptocurrency company in Cayman Islands
Company formation in the Cayman Islands is a simple process that involves a few key steps and for which there are several mandatory conditions.
Our incorporation agents can help you open a cryptocurrency company in Cayman Islands and apply for the needed licenses.
- The following requirements are relevant for virtual asset service providers in the Cayman Islands:
- Provide an auditor report issued by an independent auditor, when instructed to do so by the Authority;
- Prepare annual accounts and provide these documents for inspection, at the request of the Authority;
- Ensure that the senior officers activating in the company and the beneficial owners are fit and proper for the positions they occupy;
- Protect the personal data and virtual assets of their clients, as well as make sure that the communications related to the virtual asset service they provide are accurate.
Cryptocurrency company regulation
Companies activating in the digital or virtual assets sector are subject to a number of requirements, including obtaining a crypto exchange license in Cayman Islands when they engage in activities related to the exchange between one or more forms of convertible virtual assets.
The following laws are relevant for these types of activities:
- Virtual Asset (Service Providers) Law: under law, a crypto exchange license in Cayman Islands is a necessity for those who offer virtual asset custodial services or operate a virtual asset trading platform;
- FATCA compliance: the Foreign Account Tax Compliance Act (FATCA) in the case of US persons (for the reporting of information on the financial accounts held by US nationals to the US Internal Revenue Service);
- AML: anti-money laundering rules are to be followed by companies that engage in relevant financial business activities;
- Other rules: the incorporation requirements under the Companies Law; as previously stated, a company will need to have a registered office in the Cayman Islands, as well as a registered agent.
Advantages for investors in the Cayman Islands
Perhaps the most important advantage for those who open a cryptocurrency company in Cayman Islands is the fact that there are no taxes on digital assets.
The Cayman Islands do not impose corporate taxes, income, capital gains, inheritance, or gift taxes on activities performed in relation to digital assets (transfer, issuance, or holding).
Adding to the benefits of the recognized tax neutrality is the fact that there are no restrictions concerning residency or nationality for investors.
Foreign nationals are permitted to incorporate a legal entity in the Cayman Islands and enjoy full ownership rights.
The Cayman Islands General Registry offers comprehensive statistics on company registration, as presented below by our agents:
- 16,584 companies were registered in 2021;
- there were 116,996 active companies in Q4 2021;
- 82.2% of the active companies were exempt companies, followed by 6.5% resident companies.
Contact our Cayman Islands company formation agents if you wish to know more about the process to incorporate a cryptocurrency company or the registration of the virtual asset service providers.
The process needed to set up a Cayman Islands company that will offer cryptocurrency services can be explained by our team. We offer complete solutions for those looking to open a blockchain or cryptocurrency company and we assist investors from the earliest incorporation stages. You can reach out to us for more details about our solutions.
Our team is also able to assist foreign corporations looking to open a branch in the Cayman Islands.