Why Cayman Islands?
Advantages
- International recognition and reputation – Cayman Islands are among the leading world financial centers and meet FATF standards.
- No taxes on cryptocurrencies – no profit tax, capital gains tax.
- Flexible VASP regulation – clear regulation of the digital assets sector (VASP Act, 2020).
- Ease of doing business – fast registration, no physical office requirements.
- Legal status of crypto exchanges and custodians.
- Direct access to international investments.
- Business owner confidentiality
- Flexible corporate legislation – can work with one director and one shareholder.
Restrictions
- Companies working with privacy coins and anonymous transactions may be subject to increased control.
- Increased requirements for the reputation of key persons of registered companies and sources of funds.
- Mandatory compliance with international AML/CFT standards and Travel Rule.
Restrictions for Russian citizens
- There are no formal restrictions, but there may be difficulties in opening accounts and banking services.
- Increased requirements for disclosure of information about beneficiaries.
- Sanction risks may affect the regulator's decision to issue a license.
Who is suitable for a license on Cayman Islands
- Crypto exchanges and trading platforms
Can obtain a full license, conduct trading, broker and custodial operations, legally serve clients worldwide.
- Payment services and crypto wallets
Registration or licensing VASP allows serving clients, managing wallets and complying with KYC/AML and Travel Rule requirements.
- Investment funds and crypto trusts
Cayman Islands are popular among investment structures 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, game tokens and collectible digital assets.
Cost
Medium–high level: reasonable base costs for registration, but significant additional costs for licensing, officer maintenance and compliance with regulator requirements.
Cayman Islands offer attractive conditions for crypto business, but full licensing requires serious financial preparation.
Main stages of legalization
- Company creation
Registration of Exempted Company on Cayman Islands, appointment of key personnel (director, AML officer, auditor).
- Documentation preparation
Development of a business plan, AML/CTF policies and procedures, KYC, collection of information about beneficiaries and structure of ownership, preparation of White Paper (if necessary).
- Application submission to CIMA
The package of documents is submitted through the online system REEFS. The regulator conducts a check for compliance with requirements.
- Consideration of the application and approval
The process takes from 1 to 9 months, depending on the type of license. Additional requests may be made.
- Receiving a license and starting work
After approval, the company pays the licensing fee and begins activity under the supervision of CIMA.