Cayman Islands Virtual Asset Service Provider (VASP) Company in 2023
Since 2003, Healy Consultants Group PLC assists multi-national Clients to register financial services companies across the globe. This includes the Cayman Islands Virtual Asset Services Provider (VASP) company for multinational Clients looking to conduct cryptocurrency activities.
About the Cayman Islands VASP company regime
A Cayman Islands VASP company is a limited liability company (LLC). Since 2020, Cayman Islands VASP LLCs can offer virtual asset holding and management services including:
- Issuing and managing digital assets (e g cryptocurrencies);
- Participating in initial coin offerings (ICO);
- Creating and issuing security tokens/ utility tokens;
- Exchange activities related to popular and pioneer digital assets that are tradeable or transferable;
- Offering exchange services between virtual assets and flat currencies;
- Exchange between one or more convertible virtual asset;
- Transfer of virtual asset;
- Virtual asset trading platforms.
For all of the above, a single VASP licence is required. More details on licensing requirements below.
Why register a Cayman Islands company to offer virtual asset services?
- A Cayman Islands company is legally exempt from tax on revenues and profits sourced outside the Cayman Islands.
- A Cayman Islands company does not need to appoint a resident director.
- Visit this page for more information on the advantages of a Cayman Islands company.
What are the disadvantages of a Cayman Islands VASP company?
- Since 2019, the Cayman Islands government requires all Cayman Islands LLCs to comply with economic substance requirements.
- Tax haven (click link) companies, including Cayman Islands ones, are not long-term solutions for our Clients, because they are negatively perceived by international banks, governments, investors and customers.
- For alternative, reputable, legally tax-exempt corporate structures, refer to this webpage (click link).
- Visit this page for more information on the disadvantages of a Cayman Islands company.
Cayman Islands regulatory licence requirements and exemptions
- Since 31 October 2020 i) all new market players and ii) pre-existing virtual asset service providers must register with the Cayman Islands Monetary Authority (CIMA).
- Registration is completed electronically by submitting i) an application form and ii) an AML/CFT form to CIMA.
- VASP companies registered with CIMA can obtain a licence to carry out their activities. CIMA has not yet announced when licensing will begin, nor how long licensing applications will take. However, we expect licensing applications to be welcomed from February 2021, with four months to issue the licence.
- Companies managing traditional and digital fiat currencies will be exempt from the above registration and licensing requirements.
Healy Consultants Group PLC fees for Cayman Islands VASP company setup amount to US$17,812. Kindly also budget additional US$43,000 for licence registration. Fees depend on many factors, and the final figure is determined by CIMA. View our VASP company set up invoice here.
How we can help our multinational Clients
Healy Consultants Group PLC can assist our Clients file a complete regulatory registration and licence application with the Cayman Islands Monetary Authority (CIMA), enabling them to legally begin virtual asset service operations. A Cayman Islands VASP company set up engagement typically proceeds as follows:
- On behalf of our Client, Healy Consultants Group PLC incorporates a Cayman Islands company. Visit this page for information on the steps for setting up a Cayman Islands company.
- Our dedicated banking team opens a virtual currency multi-currency corporate bank account for the Cayman Islands company with a local, reputable bank. Our Client does not need to travel to the Cayman Islands to complete this step.
- Healy Consultants Group PLC registers our Client’s Cayman Islands company for tax and VAT.
- Our team submits an application for VASP registration and licensing to CIMA.
Setting up a Cayman Islands VASP company is easy if you know how. Engage Healy Consultants Group PLC to incorporate your VASP company to conduct global virtual asset holding and management services.