It seems that 2017 will be remembered as the year of the initial coin offering (ICO). The Cayman Islands is witnessing an upsurge in ICO-related business and structuring an ICO through the territory remains an attractive proposition. However, ICO-specific guidance is yet to be issued by the government or the regulator, and a number of legal uncertainties remain. Existing statutory and regulatory regimes must therefore be considered when structuring an ICO.
The Cayman Islands Monetary Authority recently updated its Regulatory Policy on Licensing Banks. The policy provides clear distinctions between the requirements for home-regulated and host-regulated banks, and covers capital adequacy, information about shareholders and their financial resources, business plans, internal systems and management.