What is Cayman Islands's FATF status?

Cayman Islands is classified by FATF as: fsrb_only.

Are VASPs licensed in Cayman Islands?

Yes — licensing is required for VASPs.

What is the AML/KYC regime in Cayman Islands?

KYC is mandatory for crypto businesses.

🇰🇾 Cayman Islands

The Cayman Islands maintains a crypto-friendly regulatory environment with a well-regulated financial services system. The Cayman Islands Monetary Authority oversees virtual assets under established frameworks such as the VASP Act 2020.

Overview

Status	crypto_friendly
Risk Score	15/100 (Low Risk)
Region	caribbean
Currency	KYD

Tax Information

Capital Gains (Personal)	0% (no income or capital gains tax)
Capital Gains (Corporate)	0% (no corporate tax)
VAT on Crypto	No

The regulatory page does not specify detailed crypto tax rates or rules, but VAT does not apply to crypto transactions.

Licensing & Registration

Required	Yes
Regulator	CIMA
Framework	VASP Act 2020
Ease	medium
Cost (USD)	$25,000 - $200,000

Licensing is required under the VASP Act 2020 for virtual asset service providers.

Enforcement Activity

Level: Moderate

CIMA has enforced VASP registration requirements and taken action against non-compliant entities.

AML / KYC

KYC Required	Yes
Travel Rule	Yes
FATF Member	No
FATF Status	fsrb_only
FATF Body	CFATF
Suspicious-Activity Reporting	Yes

DeFi, Stablecoins & NFTs

Status: unregulated

DeFi activities are currently unregulated but operate within the broader crypto-friendly environment.

Stablecoins

Status: regulated

Stablecoins are regulated under the general virtual asset regulatory framework.

NFTs

Status: no_rules

No NFT-specific regulation. NFTs with investment characteristics may fall under VASP Act or securities regulation.

Mining

Legal	Yes
Electricity Cost	$0.3/kWh
Renewable Energy	10%
Infrastructure	good

Mining is legal with moderate electricity costs and good infrastructure; tropical climate affects cooling costs.

Geopolitical Risk

Stability	stable
Sanctions	No
Corruption Index	58/100
Banking Access	open

Risk Factors

hurricane risk
small market size

The Cayman Islands is politically stable with no international sanctions, good internet freedom, and open banking access for crypto businesses. Risks include natural disasters such as hurricanes.