Cayman Islands
Crypto Licensing
Secure Global Licensing for Digital Asset Operations
Benefits
Ancova assists crypto businesses, funds, and exchanges in obtaining fully compliant offshore licenses under the Cayman Islands Monetary Authority (CIMA) and the Virtual Asset Service Provider (VASP) framework - one of the most advanced and respected offshore regulatory systems for digital assets.
Crypto Fund Registration
Structured under Mutual Funds Law or Private Funds Law.
Crypto Asset Exchange
Operate a fully licensed digital asset trading platform.
Crypto Brokerage License
Licensed brokerage for international crypto asset trading.
The Cayman Islands offer a highly favorable jurisdiction combining legal strength, investor privacy, and full exemption from corporate, income, and capital gains taxes - making it the domicile of choice for global crypto enterprises.
Key Advantages
- No corporate, income, or capital gains tax
- Global fund domicile of choice
- Strong legal opinion framework
- Confidentiality and investor privacy
Everything You Need to Know
Need more clarity? Our team is here to provide tailored guidance and support.
Virtual-asset activity carried on in or from the Cayman Islands is regulated by the Cayman Islands Monetary Authority (CIMA) under the Virtual Asset (Service Providers) Act, commonly called the VASP Act. The regime is two-tiered: most providers register with CIMA, while since 1 April 2025 the highest-risk providers must hold a full licence.
Registration is the baseline tier for most providers; a full licence carries enhanced prudential, governance and supervisory obligations. Since 1 April 2025, virtual-asset custodians and operators of trading platforms must hold a licence rather than register, and a firm carrying on both licensable and registration-only activities needs only the licence.
The VASP Act covers issuance of virtual assets and the provision of a 'virtual asset service' — exchange (virtual asset to fiat or between virtual assets), transfer, custody, and participation in related financial services. Under the Phase 2 amendments, custody and operating a trading platform now require a full licence, while the other activities remain registration-only.
Fees are set in Schedule 2 of the 2025 Amendment Regulations (an application fee plus a grant/annual fee), with licence-tier fees materially higher than registration. The Act empowers CIMA to require a minimum net worth, but this is set case by case according to the nature, size and complexity of the business rather than a single published figure — verify current Schedule 2 amounts.
A VASP must be a Cayman-formed entity (company or partnership), with at least three directors — one of whom must be independent — and must appoint an AML Compliance Officer (AMLCO), a Money Laundering Reporting Officer (MLRO) and a Deputy MLRO, all subject to CIMA's fit-and-proper assessment.
VASPs are subject to the full Cayman AML/CFT regime under the Anti-Money Laundering Regulations and the Proceeds of Crime Act — risk-based KYC/CDD, transaction monitoring, record-keeping and suspicious-activity reporting. The FATF Travel Rule applies, sanctions screening must follow Cayman Financial Sanctions Notices, and senior officers, directors and 10%-plus owners must pass CIMA's fit-and-proper assessment.
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