Many established and aspiring enterprises have been exploring
the use of initial coin offerings (ICOs) to raise
funds and/or encourage the development of software projects on
blockchain networks. The issuing vehicle is invariably a newly
formed company of one type or another. An early consideration is
where to form this issuer. This article considers key
features of the Cayman Islands in the context of an ICO and
explains why Cayman's strengths make it appealing for
well-organised ICOs. At the same time we advise caution in respect
of how an ICO issuer will comply with anti-money laundering
requirements.
Context
The Cayman Islands is the pre-eminent jurisdiction for
establishing international investment fund and finance structures.
Cayman's stable and predictable political and legal platform
allows participants with diverse needs from different countries to
undertake legitimate transactions in a neutral environment. Tax
neutrality is important, of course, but so
