The Cayman Islands is famed for its azure beaches and its welcoming role as a global haven of international capital. Its laws are favourable to capital, providing for minimum taxability. The Cayman Islands, like the Bahamas, has now extended its favourable tax terms to digital assets. Cryptolydian analyses.
The Cayman’s cryptocurrency regulations
Loop Cayman recently reported that the Cayman Islands is to be one of the top countries for Bitcoin. Earlier in 2020, the Cayman legislature introduced the Virtual Asset Service Provider Bill, which provides a framework to regulate the registration of cryptocurrency businesses in the country. It aims to further bring the country’s cryptocurrency sphere under the oversight mechanisms of the Cayman Islands Monetary Authority. It will also require any company wishing to provide digital asset services to register with the body beforehand.
The bill comes as countries have increasingly been adopting legislation and furthering already existing regulations regarding cryptocurrency. These efforts aim to protect the integrity of the assets and provide the most favourable environments for prospering cryptocurrency investments. It will also further regulate issues relating to cybersecurity and capital. Moreover, it provides that any company wishing to provide digital asset services in the Caymans must first possess a registered office on the island.
Official cryptocurrency attitudes
Carey Olsen, in a published report, stressed that the Cayman Islands remains one of the world’s most business friendly places. It is made more attractive because of its legislative and judicial ties to the United Kingdom, and of course, for its favourable tax measures.
The government of the Caymans have been increasingly wanting to increase fintech business within the country’s borders. The newly proposed bill comes as the island nation endeavours to integrate blockchain and fintech into their economy, while also maintaining the country’s famed transparency and ethical business rules.