Company Registration
2 Week
Local Director?
No
Bank Account Opening
4 Weeks
Travel Required?
No
Excellent
Based on 87 reviews
Cayman Island Crypto license
- The Cayman Islands Crypto license is a desirable regulatory regime for companies involved in cryptocurrency activities, providing legal certainty, tax benefits, and international acceptability. As new Virtual Asset (Service Providers) (Amendment) Regulations come into effect on April 1, 2025, all cryptocurrency custody and trading companies are required to acquire licenses to meet anti-money laundering (AML) and cybersecurity requirements. Large players such as Coinbase and Binance have already obtained licenses under this regime, highlighting its international popularity.
- To register company in Cayman Islands is an effective process with the support of a sound financial system and the absence of corporate income tax. The jurisdiction is well-known for having versatile company structures and low maintenance needs, and therefore, it is the best choice for crypto companies to grow globally. The Cayman Islands is spending a lot on infrastructure to promote fintech innovation, further positioning itself as a top cryptocurrency company hub.
- At Tetra Consultants, we possess specialized knowledge that can guide firms through the process of securing the Cayman Islands Crypto license and company registration in the jurisdiction. Our understanding simplifies the process, ranging from document preparation to regulatory compliance.
Advantages of obtaining Cayman Islands crypto license
Legal clarity and regulatory support
- A crypto license gives firms a transparent legal environment and regulatory support, encouraging user and investor confidence. This transparency is necessary for long-term viability in the fast-changing world of cryptocurrencies.
Tax incentives
- The Cayman Islands is highly reputable for its favorable taxation regime, i.e., no corporate taxation on income, no capital gain taxation, or tax on inheritance. This can encourage businesses to make more profit and invest easier.
International recognition
- A Cayman Islands crypto license is universally recognized, boosting a firm’s reputation and appeal to foreign traders and investors. This helps to contribute to higher liquidity and trading volumes.
Improved security measures
- The process of licensing involves robust KYC (Know Your Customer) and AML (Anti-Money Laundering) norms, which enhance the security of operations and safeguard against fraud, thereby raising customer confidence.
Investment attraction
- Regulated entities can attract private and institutional investment with greater ease since compliance with regulatory requirements gives confidence to investors about the safety of their investments.
Stable economic climate
- The Cayman Islands has a stable political and economic environment, offering a secure platform for crypto activities. This stability boosts investor confidence and facilitates business expansion.
Timeline to obtain Cayman Island crypto license
- With Tetra Consultants, one can obtain a Cayman Islands crypto license on a scheduled timeline. Company registration will be done within 1 week, having your business duly registered and in line with local legislation. Then, the acquisition of the Virtual Asset Service Provider (VASP) license will be a process that will take 3 to 6 months, depending on how complicated application is and how fast the Cayman Islands Monetary Authority (CIMA) is.
- Throughout this time, Tetra Consultants will help prepare and file all the required documents, such as AML/CFT policies and business plans. Also, a corporate bank account opening with a well-established financial institution generally takes around 4 weeks to allow minimum paid-up capital to be deposited for the purpose of licensing.
- In total, Tetra Consultants rationalizes each part of this procedure to make sure that it remains efficient and regulatory compliant. It will take from 4 to 7 months for the complete process, which includes company formation, obtaining the VASP license, and establishing the bank account. We would like to help your business achieve this with no hassle.
Regulatory authority for Cayman Island crypto license
- The licensing authority for cryptocurrency in the Cayman Islands is the Cayman Islands Monetary Authority (CIMA). CIMA oversees and regulates different aspects of cryptocurrency operations, including the licensing of virtual asset service providers (VASPs) like crypto exchanges, brokers, and custodians.
- As of April 1, 2025, institutions providing virtual asset custody and trading services are required to be licensed by CIMA. This is under the revised Virtual Asset (Service Providers) (Amendment) Regulations, 2025, which requires existing and new VASPs to apply for a license within a given period.
- According to the Virtual Asset Service Providers Amendment Regulations 2025, current companies have until June 29, 2025, to apply for their licenses. The application process requires custodians to reveal the digital assets they will hold, the values of those assets, and the reasons behind their storage arrangements. Trading platforms must also offer detailed information on their anticipated revenues and the physical locations of operational hardware. In addition, they should detail their cybersecurity practices, risk controls, and procedures for protecting assets against loss or theft.
- These new regulations take the VASP Law, launched in 2020, which mainly focused on anti-money laundering (AML) and counter-terrorism financing (CTF) standards. The new system not only supports these elements but also creates a stricter licensing regime to achieve adherence to international regulatory standards. Through the requirement for detailed disclosures and operational transparency, the Cayman Islands aims to provide a safe space for cryptocurrency operations while gaining quality firms as part of its jurisdiction.
Activities allowed under Cayman Island crypto license
- The Cayman Islands crypto license enables companies to undertake a number of activities within the cryptocurrency space. Below are the most significant activities supported by this licensing arrangement:
Exchange services:
- Companies may facilitate the exchanges between virtual assets and fiat money, or exchanges among various convertible virtual assets.
Brokerage services:
- Authorized bodies may operate as brokers, arranging the transactions involving virtual currencies for customers.
Trading activities:
- Businesses may operate to buy and sell digital assets on their own, taking an active role in the market of exchange.
Custody services:
- The license enables businesses to provide virtual asset custody services for safekeeping and management of assets on behalf of the customers.
Virtual asset issuance:
- Companies can conduct or provide financial services pertaining to the issue and sale of virtual assets, for example, arranging Initial Coin Offerings (ICOs).
Innovative Financial Technology (FinTech):
- The license tends to prefer FinTech business providing innovative services regarding virtual assets.
Sandbox licensing:
- If a business model cannot fit into existing categories, it can apply for a sandbox license in order to test new services under oversight.
Activities excluded under Cayman Island crypto license
- Certain activities are specifically excluded from licensing under the Cayman Islands crypto license framework. These are:
Issuance of security tokens:
- Companies are not able to issue securities tokens except if they have a Securities Investment Business license from the Cayman Islands Monetary Authority (CIMA) that is issued independently.
Digital representations of fiat money:
- Transactions involving virtual currencies that are equal to fiat money are not classified as virtual assets under the current legislation.
Virtual service tokens:
- Tokens that grant access to applications or services but are not exchangeable or transferable with third parties are not included in the definition of virtual assets.
Activities not included in licensing categories:
- Any business model that is not included in the pre-defined categories of virtual asset services may also be excluded unless a sandbox license is sought, so that innovative services can be offered under regulatory oversight.
Types of Cayman Islands crypto license
Crypto exchange license:
- This license enables businesses to operate cryptocurrency exchanges that enable the exchange of virtual currencies for fiat currencies or other cryptocurrencies. It is ideal for platforms where users can buy, sell, and exchange digital currencies.
- These businesses are required to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) guidelines, have strict security in place to protect user funds and data, and practice fair trading to ensure market integrity.
Crypto broker license:
- The Crypto Broker License is for companies that are intermediaries in cryptocurrency transactions. The brokers make transactions on the accounts of their customers, manage portfolios, and provide advisory information. The licensed brokers must adhere to very strict regulatory demands, perform due diligence appropriately on customers, and be clear in their actions and operations in serving the best interests of their clients.
Crypto trading license:
- This license is designed for businesses which directly engage in the selling and buying of digital assets. It applies to proprietary trading firms or market makers actively engaging in the cryptocurrency market. Licensees can trade on their own account, offer liquidity to exchanges, and must deploy effective risk management to avoid losses from price volatility.
Crypto custody license:
- Companies can offer virtual asset storage services on behalf of clients. This can be specially noted for institutional investors or those that want to secure their digital assets. Custodians are required to apply stronger security measures like cold storage and multi-signature wallets, comply with the regulatory guidelines for managing assets, and may insure in case of potential breach or failure.
Virtual asset issuance license:
- This license enables businesses to issue virtual assets, such as performing Initial Coin Offerings (ICOs). It is necessary for businesses that want to raise capital through token sales. Issuers are required to adhere to Cayman Islands Monetary Authority (CIMA) regulations regarding disclosures and investor protections, categorize their tokens as utility or security tokens, and be transparent by giving thorough documentation regarding the risks involved in the investment.
Sandbox license
- The Sandbox License is provided for new business models that do not fit within the existing licensing categories. The license enables companies to pilot test new products or services in a controlled environment with CIMA’s oversight for up to 12 months. This short-term license offers regulatory latitude for experimentation with the opportunity for businesses to shape their offerings in response to regulators’ feedback before seeking a full license.
Steps for obtaining Cayman Islands crypto license
Step 1: Initial consultation & VASP analysis
- Tetra Consultants starts with a thorough consultation to evaluate your business model, target market, and scope of operations. Our experts perform a VASP (Virtual Asset Service Provider) evaluation to identify the suitable license category (exchange, custody, trading, etc.) under Cayman Islands Monetary Authority (CIMA).
Step 2: Company incorporation
- After the initial consultation, our experts will consult with you whether VASP license is required or not. If VASP license is not required, we will directly proceed with corporate bank account opening after company incorporation. If VASP license is required, our experts will help in the incorporation of a Cayman Islands exempted company, the structure of choice for cryptocurrency companies. This involves performing KYC/AML checks for directors, shareholders, and ultimate beneficial owners (UBOs) by providing required documents like passports, utility bills, professional references, and clean criminal records.
- We also assist in obtaining a local office address to satisfy CIMA’s requirement of physical presence and prepare the constitutional documents, such as the Memorandum and Articles of Association. The whole process of incorporation is usually finalized within 1 week.
- Additionally, we also aid with international trademark registration services to our clients for protecting their brand name globally.
Step 3: Document preparation & VASP application
- After the company is incorporated, our professionals draft all documents necessary for the application of the VASP license. These include central documentation like AML/CFT policies that meet Cayman Islands’ requirements, customer asset protection cybersecurity protocols, a comprehensive business plan with financial projections and operating workflows, and an organizational structure as well as CVs of principal personnel, including an AML officer who has been appointed.
- The finished application is subsequently sent through CIMA’s REEFS along with an assessment fee, which is non-refundable.
Step 4: Regulatory engagement & license approval
- Upon submission, Tetra coordinates all communications with CIMA during the review process. This includes responding to any questions from regulators, making submissions of clarifications where necessary, and coordinating interviews with CIMA officials for purposes of facilitating approval.
- Important requirements at this stage include showing evidence of financial solidity while there is no minimum capital requirement demonstrating adequate liquidity for business and offering evidence of a sound IT infrastructure and efficient risk management systems. The approval of the license normally takes 3 to 6 months subject to CIMA’s due diligence.
Step 5: Corporate bank account opening
- After obtaining the VASP license, Tetra Consultants will proceed with the corporate bank account opening with a well-established financial institution in the Cayman Islands or a foreign bank.
- This entails the deposit of any share capital required if necessary and the submission of proof of licensing and compliance documentation to the bank. The opening of the corporate bank account takes approximately 4 weeks.
Step 6: Ongoing compliance and reporting
- Once you have been licensed and opened a bank account, Tetra Consultants makes sure your business is up to date with regular regulatory requirements from CIMA. This entails performing periodic AML/KYC audits to oversee transactions and uphold good record-keeping procedures.
- We also help prepare annual financial reports and make sure financial statements are submitted in a timely manner while offering staff training on regulatory changes and compliance procedures. We also oversee the annual renewal process for your license, submitting updated operating disclosures.
Documents required for obtaining Cayman Islands crypto license
- Notarized copies of passports of shareholders and directors.
- Recent utility bills from all shareholders and directors serve as proof of address.
- Detailed resumes outlining the professional backgrounds and qualifications of all key individuals involved in the company.
- A comprehensive document describing the business model, operational structure, financial projections, and risk management strategies.
- Documentation detailing the source of funds for major shareholders, including current job designations and relevant financial information.
- A letter confirming the intended business activities to be conducted under the crypto license.
- Detailed anti-money laundering (AML) and know-your-customer (KYC) policies that comply with Cayman Islands regulations.
- Designation of a local AML officer responsible for overseeing compliance with regulatory requirements.
- Documentation outlining the measures taken to ensure the security of customer data and virtual assets.
- A chart detailing the roles and responsibilities of team members within the company.
- Audited financial statements or other documentation demonstrating the company’s financial stability and ability to meet obligations.
- A certificate from the applicant’s country of residence confirming no criminal record.
- Letters from banks or other institutions verifying the professional conduct of shareholders or directors.
Regulatory requirements for obtaining Cayman Islands Crypto license
- A local AML officer.
- A local CIMA-approved director is required if VASP activity includes custodians. These requirements can be complied with the help of our nominee director and shareholder services.
- The company must have at least one shareholder, who can be an individual or a corporate entity without residency requirements.
- The minimum paid-up share capital required for obtaining a crypto license is US$100,000. This capital must be deposited and maintained to demonstrate financial stability and support operational activities.
- A dedicated compliance officer must be appointed to oversee adherence to all relevant regulations, including AML and CFT (counter-terrorism financing) measures.
- The company must have a registered office located in the Cayman Islands. This physical presence is essential for compliance with local regulations and ensures that the company can be reached by regulatory authorities.
- A detailed business plan outlining the company’s operational strategy, risk management framework, and financial projections is required as part of the application process.
- Companies must develop and implement comprehensive AML/KYC (Know Your Customer) policies that comply with local regulations. This includes monitoring transactions and reporting suspicious activities.
Cost of obtaining Cayman Islands crypto license
- At Tetra Consultants, we maintain a clear and streamlined process of acquiring a Cayman Islands crypto license. Our experts give you a comprehensive outline of all the costs involved upfront, so you are well aware of all the expenses. This ranges from government charges to company incorporation fees, preparation of compliance documents, and bank account opening fees. Through this transparency, we rule out any scope for surprise charges, enabling you to effectively plan your budget.
- We also provide value-added services like the appointment of an AML officer, drafting AML/KYC policies, and ensuring compliance with local laws. Our holistic approach ensures that all statutory requirements are fulfilled without undue delay or complexity. In addition, we offer support on an ongoing basis to assist you in meeting post-licensing requirements, such as annual audits and license renewals.
- With Tetra Consultants, you get end-to-end support from the beginning of the licensing process to the end. From consultation to approval, we ensure transparency and regulatory compliance to make your experience smooth and trouble-free in setting up your cryptocurrency business in the Cayman Islands.
How can Tetra Consultants help in obtaining Cayman Islands crypto license?
- Tetra Consultants provides full-scale support to clients wanting to gain a cryptocurrency license in the Cayman Islands in the most effective and efficient way. Choosing Tetra Consultants means benefiting from many perks, such as professional consultancy regarding regulatory requirements, personalized guidance on structuring business, and scrupulous documentation preparation. Their team promotes transparency by breaking down all expenses incurred, from set-up costs to ongoing operating costs, to enable businesses to budget properly and stay away from unexpected financial burdens.
- Furthermore, Tetra Consultants’ long history in the cryptocurrency license allows them to navigate intricate regulation environments, ensuring your business complies with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) rules. By taking advantage of their experience, clients are able to concentrate on their core business functions while Tetra Consultants addresses the complex procedures of licensing and compliance. Such expert assistance not only increases the possibility of getting the license with success but also prepares your business for long-term growth and stability in the aggressive cryptocurrency market.
Looking to obtain Cayman Islands crypto license
- Contact us to know more about Cayman Islands crypto license and our team will revert back in 24 hours.
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