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ARTICLE · 22 JANUARY 2025

Crypto Funds In The Cayman Islands

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As one of the leading 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...

Cayman IslandsFinance and Banking
Matt Mulry
Matt Mulry
Sailaja Alla
Sailaja Alla
Peter Colegate
Peter Colegate
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As one of the leading 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. The introduction of framework legislation regulating virtual asset service providers (the VASP Act) in 2020 attracted a number of new entrants to the Cayman market.

Cayman's flexible business-orientated legislation enabled the Islands to pivot away from retail crowdfunded models towards security tokens and stablecoins, which provided greater value stability and more predictable investment returns. This same flexibility means that Cayman is already taking advantage of the latest shift towards securitising common assets and decentralised finance (DeFi) products.

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