---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "caribbean", "crypto_friendly"]
aliases: ["KY", "CYM"]
created: 2026-09-03
updated: 2026-01-10
compile_into: ["[[country--cayman-islands]]"]
sources:
  - name: "Cayman Islands Monetary Authority"
    url: "https://www.cima.ky"
    type: "official"
  - name: "CIMA: VASP regulatory measures"
    url: "https://www.cima.ky/virtual-asset-service-providers-regulatory-measures"
    type: "official"
  - name: "taxsummaries.pwc.com"
    url: "https://taxsummaries.pwc.com/cayman-islands/individual/taxes-on-personal-income"
    type: "reference"
  - name: "taxsummaries.pwc.com"
    url: "https://taxsummaries.pwc.com/quick-charts/corporate-income-tax-cit-rates"
    type: "reference"
  - name: "taxsummaries.pwc.com"
    url: "https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates"
    type: "reference"
  - name: "cima.ky"
    url: "https://www.cima.ky/upimages/lawsregulations/VirtualAssetServiceProvidersAmendmentBill,2025_1749482504.pdf"
    type: "reference"
---

# 🇰🇾 [[country--cayman-islands|Cayman Islands]] (KY): Crypto Regulation

> The Cayman Islands maintains a crypto-friendly regulatory environment with clear oversight by the Cayman Islands Monetary Authority (CIMA). The Virtual Asset (Service Providers) Act (2020, amended 2024) governs virtual asset service providers, ensuring a well-regulated financial services system.

## Overview

| Field | Value |
|-------|-------|
| Status | crypto_friendly |
| Risk Score | 15/100 (Low Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--caribbean|caribbean]] |
| Currency | [[entity--kyd|KYD]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | No capital gains tax (no income tax on individuals) |
| Capital Gains (Corporate) | No corporate income tax or capital gains tax |
| VAT on Crypto | No |

The Cayman Islands levy no income, corporate or capital gains tax, so crypto gains are not taxed.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--cima|CIMA]] |
| Framework | Virtual Asset (Service Providers) Act (2024 Revision), as amended |
| Ease | medium |
| Cost | $25,000 - $200,000 |
| Timeline | 3-9 months |

Licensing is required for virtual asset service providers under the Virtual Asset (Service Providers) Act, with a medium level of difficulty to obtain a license.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | compliant |

## DeFi

**Status:** regulated

DeFi activities are regulated under the Virtual Asset (Service Providers) Act, requiring compliance with AML and licensing rules.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under the existing virtual asset framework, requiring licensing and AML compliance.

## NFTs

**Status:** no_rules

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

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.3/kWh |
| Renewable Energy | 10% |
| Climate | tropical |
| Infrastructure | good |

Mining is legal but electricity costs are relatively high compared to global averages, with limited renewable energy usage.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 62/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |
| Sanctions Programs Active | No |

## Enforcement

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

## CBDC Status: none

## FAQ

### Is cryptocurrency legal in Cayman Islands?

The Cayman Islands maintains a crypto-friendly regulatory environment with clear oversight by the Cayman Islands Monetary Authority (CIMA). The Virtual Asset (Service Providers) Act (2020, amended 2024) governs virtual asset service providers, ensuring a well-regulated financial services system.

### What is the FATF status of Cayman Islands?

Cayman Islands is classified by FATF as: compliant.

### 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.

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-09-03.*

**Sources:**
- [Cayman Islands Monetary Authority](https://www.cima.ky)
- [CIMA: VASP regulatory measures](https://www.cima.ky/virtual-asset-service-providers-regulatory-measures)
- [taxsummaries.pwc.com](https://taxsummaries.pwc.com/cayman-islands/individual/taxes-on-personal-income)
- [taxsummaries.pwc.com](https://taxsummaries.pwc.com/quick-charts/corporate-income-tax-cit-rates)
- [taxsummaries.pwc.com](https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates)
- [cima.ky](https://www.cima.ky/upimages/lawsregulations/VirtualAssetServiceProvidersAmendmentBill,2025_1749482504.pdf)