Cayman Islands: Technology

Many crypto-asset service providers will soon be required to start collecting detailed information about customers and transactions and report to their national tax authorities annually.

Regulatory compliance for digital assets can vary across jurisdictions, affecting licensing, product launch speed and the viability of certain business models.

The article highlights the key legal pitfalls Fintech businesses should avoid when establishing in the Cayman Islands, including entity misclassification, inadequate substance planning, poor structuring, lack of cross-border alignment, weak governance, and reactive compliance.