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Cryptofund registration in the Cayman Islands

Cryptofund in the Cayman Islands

For over 30 years, the Cayman Islands have been a leading offshore jurisdiction for forming private and mutual funds. More recently, the jurisdiction has also attracted the attention of cryptocurrency traders - ¾ of their funds are registered there. 

Among the advantages are political and economic stability, the absence of taxes and currency control, and low fees. In addition, the Cayman Islands have adopted innovative laws to regulate companies that work with virtual assets, opening the door to this market.

Types of crypto fund registration

Both private and mutual funds can be registered to deal with cryptocurrency. However, both will be considered virtual asset providers and require registration with CIMA (the Cayman Islands Monetary Authority).

Cryptofund in the Cayman Islands

Cryptocurrency mutual fund

A mutual fund is an equity portfolio designed to work with many investors. The basic requirements for its registration in the Cayman Islands:

  • Annual audit and submission of a report within six months of the end of the fund's fiscal year.
  • Sending CIMA a copy of the document describing the fund's offerings. It will allow the potential investor to decide whether to buy a stake in the fund.
  • Payment of the state fee.

Private cryptocurrency funds

The operation of private cryptocurrency funds is controlled by PFA law, which requires that the structure:

  • Must be audited annually;
  • Must file regular reports;
  • Must keep records of transactions and asset valuations;
  • Must monitor the movement of funds;
  • Must conduct identification of securities.
Cryptofund in the Cayman Islands

Preferred structure of a cryptocurrency fund

Among the advantages of the Cayman Islands is flexibility, which allows you to choose the proper structure. To do this, you should consult with representatives of our company before registering and answer such questions:

  • What is the investment strategy of the crypto fund.
  • Whether only investing is planned or there will also be cryptocurrency trading, blockchain startups, and their combination.
  • Investor liquidity.

 

The following legal structures can be used to register a crypto fund:

  • LLC - a limited liability organization.
  • Segregated Portfolio Company (SPC) - assets and liabilities are segregated and protected from the liability of other similar crypto fund portfolios.
  • Exempt open-end company - suitable for managers who focus on cryptocurrency trading. It allows investors to repurchase their investments.
  • Closed-end exempt limited partnership - an option for funds focused on long-term investments in blockchain, startups, and other projects. Investors cannot redeem their assets without the manager's consent.

 

Mandatory registration of a crypto fund in the Cayman Islands

The VASP law states that all companies that deal in cryptocurrency must obtain a permit from CIMA. If they fail to do so, their activities will be considered a criminal offense (AML compliance).

 

How to register a crypto fund

Contact our company to register a crypto fund with the Cayman Islands Monetary Authority. An employee will study your needs, suggest a structure, and tell you what documents are needed. First of all, this is the data about the owners and managers. It is also necessary to file:

  • A memorandum with basic information about the crypto fund - structure, legal address, investment objectives, restrictions, risks and fees.
  • Regulatory documents (charter, partnership agreement) - the list depends on the registration form.
  • A management agreement if a third party will manage the CryptoFund.
  • An investment management agreement - lists duties, remuneration and responsibility, and regulates the relationship between the owner of the crypto fund and the manager.

 

Additionally, other documents will be needed and must be provided. You must have a registered office on the island, hire an auditor and open a bank account. For open-end funds, an external administrator is appointed.

 

How to quickly register a cryptocurrency fund

Contact IT-OFFSHORE experts for a quick registration of a cryptocurrency fund in Cayman.

Ready-made companies with bank accounts

Or you've already got own business and there is a need to expand the scope of activities. To avoid the loss of time and effort to register juridical individuals, you can arrange a ready-made company. You will have a fully prepared company with a package of documents, which is mandatory for conducting a full-fledged activity.

Companies with licenses

Buying a ready-made company is the best option for operational business development in a new industry, as well as the need to expand the scope of the existing organization increase its scale. Acquisition of a company with mandatory permits and license means the ability to enter a new market in a short period of time.

Banks

Acquisition of a ready-made bank allows you to save time, as well as quickly carry out all reissuing operations. On average, the procedure takes about one day. As a result, the client becomes the head of the bank, which already has a client base, as well as status in the market and ready staff. Our company conducts all operations in accordance with existing legislation.

Funds

Investment fund is a modern investment tool designed for all types of assets. The purpose — managing of assets as well as solving number of tasks in a way that works best for individuals. There is no open subscription, meaning that a private investment fund has a closed structure. This is the most optimal solution for distributing capital through broad instruments.

SEMI for sale

When conducting business related to foreign exchange transactions, electronic money and cryptocurrencies, it may be necessary to open a financial company with a SEMI license. This type of license covers the production of debit cards and cryptocurrencies, the acceptance and sending of payments, the execution of transfers from third parties, and the opening of merchant accounts.

Crypto Offshore

When working with cryptocurrency it is important to choose the right country, where it is most profitable to open a company. Each country has a different attitude towards this type of currency. A country that has a loyal or positive attitude towards cryptocurrency can be called a crypto-offshore.

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