Technology And Innovation Guide – Cayman Islands – Finance and Banking – Cayman Islands – Mondaq News Alerts

As one of the foremost offshore financial centres, home to
approximately 70% of the world’s offshore investment funds and
with an absence of any direct taxation on companies or individuals,
the Cayman Islands has become an attractive destination for
technology entrepreneurs. While much of Cayman’s financial
services legislation was written before the recent blockchain
revolution began, recent years have seen the Cayman Islands take a
number of legal and regulatory steps to make the Islands a
jurisdiction that will allow such innovation to thrive, including,
in May 2020, the passing of a comprehensive legislative framework
for virtual asset service providers. Cayman’s ambition to
become a global technology hub is also supported by a sound legal
framework, modern infrastructure, state-of-the-art communication
systems and a stable political climate.

The Cayman Islands proved a popular choice for issuers of
virtual assets during the initial coin offering boom of 2017 to
2018. During the “Crypto Winter” that followed,
Cayman’s flexible legislation, political stability and an
internationally recognised securities regulatory regime enabled the
Islands to pivot away from crowdfunded platforms towards security
tokens and stable coins which provided greater value stability and
more predictable investment returns. That flexibility means that
Cayman is well placed to take advantage of the current shift
towards securitising common assets and decentralised finance
(De-Fi) products.

Importantly, Cayman continues to adhere to the highest
international standards of anti-money laundering and
counter-terrorist financing set by the Financial Action Task Force
(FATF).

First amongst the leading offshore jurisdictions, Cayman
established a technology park within its existing special economic
zone (SEZ) to allow technology companies to benefit from specific
advantages, including zero-taxes and fast-tracked work permit
applications for relocating employees.

Technology and Innovation

1. Are there any
Source…

Related Posts

Read also x