The Cayman Islands Monetary Authority (“ CIMA ”) is getting ready to activate Phase 2 under the Virtual Asset (Service Providers) Act (2022 Revision) (“ VASPA ”) , which may affect crypto funds in the Cayman Islands. What...
The funds industry has undergone some significant changes in recent years as many investment managers seek to capitalise on the potentially huge gains associated with cryptocurrencies.
The Cayman Islands has fast become one of the leading markets for cryptocurrency funds and Token Offerings, and other digital and blockchain products in part due to its attractive regulatory environment.
However, there are a number of key legal issues involved in dealing with cryptocurrency in the Cayman Islands, so it is critical to have experienced, expert advice before establishing a cryptocurrency fund or Token Offerings vehicle in the Cayman Islands.
Our Digital, Blockchain and Fintech Team in the Cayman Islands have particular expertise in areas including:
- advising investment funds, administrators and other service providers on the use of Blockchain technology and smart contracts;
- advising on the establishment of ‘crypto related funds’ in the Cayman Islands;
- advising on Token Offerings and establishing Cayman Islands Companies and Foundations to conduct Token Offerings and other digital products;
- incorporating Cayman Islands companies to hold Cryptocurrencies (such as bitcoin, ether, litecoin etc);
- advising cryptocurrency funds and vehicles on the anti-money laundering regulations and ‘Know Your Client’ challenges associated with accepting bitcoin, ether and other Cryptocurrencies as a means of payment of subscription monies; and
- advising on how changes to participants and service providers can be reflected once a Blockchain or smart contract is launched.
As a boutique Cayman Islands legal practice specialising in the funds industry, we have decades of experience in helping a wide range of clients from all over the world to carry out their business effectively in this market.
We have particular experience handling the challenges involved with dealing in cryptocurrency, so can offer the tailored expertise needed to allow you to efficiently achieve your goals, adding value to your business.
To discuss your requirements with our Digital, Blockchain and Fintech Team in complete confidence, please get in touch.
Watch our Cryptocurrency and Fintech video here:
Cryptocurrency funds and STOs in the Cayman Islands – what you need to know
The following are some of the most common questions we are asked by clients. The answers cover key issues we feel may be beneficial to anyone considering opening a cryptocurrency fund or launching an Security Token Offering (STO) in the Cayman Islands.
Please note that these are intended as general guidelines only and you should always seek specific professional advice before opening a cryptocurrency fund or issuing an STO in the Cayman Islands.