Why the Cayman Islands?
Advantages
- International recognition and reliable reputation - the Cayman Islands is among the world's leading financial centers and complies with FATF standards.
- No taxes on cryptocurrency - no tax on income, capital gains.
- Flexible VASP regulation - clear regulation of the digital asset sphere (VASP Act, 2020).
- Ease of doing business - quick registration, no physical office requirements.
- The legal status of crypto exchanges and custodians.
- Direct access to international investments.
- Confidentiality of business owners
- Flexible corporate law - you can operate with one director and one shareholder.
Limitations
- Companies dealing with privacy coins and anonymous transactions may come under increased scrutiny.
- Strengthened requirements for the reputation of key persons of listed companies and sources of funds.
- Mandatory compliance with international AML/CFT standards and Travel Rule.
Restrictions for citizens of the Russian Federation
- There are no formal restrictions, but there may be difficulties with account opening and banking services.
- Increased requirements for disclosure of beneficiary information.
- Sanctions risks may affect the regulator's decision to issue a license.
Who is eligible for a license in the Caymans Islands
- Cryptocurrency exchanges and exchange platforms
Can obtain a full license, conduct trading, brokerage and custodial operations, and legally work with clients worldwide.
- Payment services and crypto wallets
VASP registration or licensing allows you to serve customers, manage wallets and comply with KYC/AML and Travel Rule requirements.
- Investment funds and cryptocurrency trusts
The Cayman Islands are popular with investment entities due to zero taxes and high confidentiality.
- DeFi projects and protocols
Projects with centralized management or interfaces can register or license, providing trust to users and investors.
- NFT and GameFi startups
Legal jurisdiction for NFT platforms, gaming tokens and collectible digital assets.
Cost
Medium-high: reasonable basic registration costs, but there may be significant additional costs for licensing, officers and regulatory compliance.
The Cayman Islands offer an attractive environment for crypto businesses, but full licensing requires serious financial preparation.
Main stages of legalization
- Company creation
Registration of Exempted Company in the Cayman Islands, appointment of key staff (director, AML officer, in case of licensing - auditor).
- Preparation of documentation
Development of business plan, AML/CTF policies and KYC procedures, collection of information on beneficiaries and ownership structure, preparation of White Paper (if required).
- Submitting an application to CIMA
The document package is submitted through the online system REEFS. The regulator performs a compliance check.
- Application review and approval
The process takes from 1 to 9 months, depending on the type of license. Additional requests are possible.
- Obtaining a license and starting work
Once approved, the company pays the license fee and starts operating under the supervision of CIMA.