In 2018 there are 2 locations being favored for ICOs, these are the Cayman Islands and Switzerland. Companies that focus on the EU & UK markets generally issue from Switzerland and in particular ZUG and those from Asia and the Americans set up and run out of the Cayman Islands.
Cayman Islands is the jurisdiction of the largest ICO in history. On December 20, 2017, Block.one, a software startup doing an ICO called EOS had sold $700 million worth of tokens during its initial coin offering. This ICO is the largest on record.
The Cayman Islands is one of the largest financial centers in the world. ICOs have flourished in The Caymans, this is despite the government having not yet issued regulations or guidance. In contrast, Switzerland has regulations……
The Cayman Islands are one of the two hotspots for launching ICOs, this is as a result of the Caymans long history as a leading international finance center. Also the government and regulators are seen as business friendly and and pro business. This business friendly climate provide a great launching platform for tech startups launching an ICO, at the same time regulators will ensure the Caymans reputation as a respected financial center by meeting international KYC, AML and compliance standards. All ICOs from the Cayman Islands are regulated. As such, they must comply with international laws.
When planning an ICO in the Cayman Islands, You need to be aware of and get advice on the following statutes:
- The Proceeds of Crime Law, Anti-Money Laundering Regulations and existing guidance notes
- The Securities Investment Business Law
- The Money Services Law
- Electronic Transactions Law
- FATCA and the Common Reporting Standards
- Beneficial Ownership Regime
The focus of regulators in the Cayman Islands is on KYC and AML compliance, they will also be paying attentions to Securities issues ( eg offering tokens in the US to non-accredited investors). Regulators are concerned about anything that could give the island a black mark on the world stage and damage its reputation as a leading financial hub.
The Cayman Islands is competing with Switzerland to be the top crypto ICO jurisdiction. There are many issues to consider when choosing a location to base your ICO out of. The Caymans with it leading reputation and friendly ICO environment are becoming a growing choice for businesses.