Mr Bradley Kruger

Bradley Kruger

Updates

Banking & Financial Services

New regulatory regime for virtual assets
Cayman Islands | 21 July 2020

The Cayman Islands recently introduced a new framework for regulating virtual asset businesses: the Virtual Assets (Service Providers) Law 2020. The law derives from recommendations made by the Financial Action Task Force and provides for the regulation of virtual asset businesses and the registration and licensing of persons which provide virtual asset services. In addition, the government has amended a number of existing laws to extend to virtual assets.

Corporate & Commercial

The foundation company as a decentralised autonomous organisation
Cayman Islands | 27 April 2020

The Foundation Companies Law 2017 was a welcome addition to the Cayman Islands legal landscape. The law introduced a brand new legal entity known as the 'foundation company' – a remarkably flexible vehicle that operates like an incorporated trust, allowing it to function like a civil law foundation or common law trust while retaining the separate legal personality and limited liability of a company.

Corporate Tax

DITC Portal update
Cayman Islands | 27 November 2020

The new Department for International Tax Cooperation (DITC) Portal launched in early November 2020. The DITC has also issued an advisory setting out details of a phased opening of the DITC Portal, confirming that it will initially be available for Common Reporting Standard and US Foreign Account Tax Compliance Act purposes, with functionality for economic substance and country-by-country reporting being launched in subsequent phases.

Update on economic substance
Cayman Islands | 02 October 2020

The Cayman Islands has comprehensive economic substance legislation, under which in-scope entities that carry on particular activities must demonstrate economic substance in the Cayman Islands. The Tax Information Authority, which is responsible for monitoring and enforcing the substance requirements in the Cayman Islands, recently published guidance on economic substance for geographically mobile activities.

Insurance

New opportunities for blockchain use in insurance industry
Cayman Islands | 21 January 2020

It has been more than a decade since blockchain – or distributed ledger technology – appeared on the financial services landscape. Yet, it is still capable of generating excitement as its value in transforming processes continues to develop. As blockchain increases its reach and its impact in specific industries grows, this will generate a need for suitable models of insurance. Cayman-based technology companies have expressed interest in buying insurance from local insurers.

Private Client & Offshore Services

Registration of virtual asset service providers commenced on 31 October 2020
Cayman Islands | 03 December 2020

The government recently announced that the Virtual Asset (Service Providers) Law 2020 will commence in phases, with phase one commencing on 31 October 2020. Phase one will focus on anti-money laundering and countering the financing of terrorism compliance, supervision and enforcement. Phase two, which is expected to begin in June 2021, will bring into force the licensing and virtual asset issuance approval process.

DITC Portal update
Cayman Islands | 26 November 2020

The new Department for International Tax Cooperation (DITC) Portal launched in early November 2020. The DITC has also issued an advisory setting out details of a phased opening of the DITC Portal, confirming that it will initially be available for Common Reporting Standard and US Foreign Account Tax Compliance Act purposes, with functionality for economic substance and country-by-country reporting being launched in subsequent phases.

Update on economic substance
Cayman Islands | 01 October 2020

The Cayman Islands has comprehensive economic substance legislation, under which in-scope entities that carry on particular activities must demonstrate economic substance in the Cayman Islands. The Tax Information Authority, which is responsible for monitoring and enforcing the substance requirements in the Cayman Islands, recently published guidance on economic substance for geographically mobile activities.

CIMA releases updated Rule and Statement of Guidance – Cybersecurity for Regulated Entities
Cayman Islands | 17 September 2020

The Cayman Islands Monetary Authority (CIMA) has updated its Rule and Statement of Guidance – Cybersecurity for Regulated Entities following feedback received during a private sector consultation. The rule, which sets out CIMA's requirements in relation to the management of cybersecurity risks, is a clear and precise directive that creates binding obligations, the breach of which may lead to a fine or regulatory action being taken by CIMA.

New regulatory regime for virtual assets
Cayman Islands | 16 July 2020

The Cayman Islands recently introduced a new framework for regulating virtual asset businesses: the Virtual Assets (Service Providers) Law 2020. The law derives from recommendations made by the Financial Action Task Force and provides for the regulation of virtual asset businesses and the registration and licensing of persons which provide virtual asset services. In addition, the government has amended a number of existing laws to extend to virtual assets.

The foundation company as a decentralised autonomous organisation
Cayman Islands | 23 April 2020

The Foundation Companies Law 2017 was a welcome addition to the Cayman Islands legal landscape. The law introduced a brand new legal entity known as the 'foundation company' – a remarkably flexible vehicle that operates like an incorporated trust, allowing it to function like a civil law foundation or common law trust while retaining the separate legal personality and limited liability of a company.

New opportunities for blockchain use in insurance industry
Cayman Islands | 16 January 2020

It has been more than a decade since blockchain – or distributed ledger technology – appeared on the financial services landscape. Yet, it is still capable of generating excitement as its value in transforming processes continues to develop. As blockchain increases its reach and its impact in specific industries grows, this will generate a need for suitable models of insurance. Cayman-based technology companies have expressed interest in buying insurance from local insurers.

Structuring ICOs in the Cayman Islands
Cayman Islands | 18 October 2018

The Cayman Islands has become a popular choice for many businesses conducting initial coin offerings (ICOs) due to its tax neutrality, its reputation as a pre-eminent jurisdiction for investment funds and its securities law regime, which is generally more permissive than those of other jurisdictions. However, before any steps towards conducting an ICO are taken, it is critical that comprehensive legal and tax advice is obtained for each business before any token is sold or any entity is formed.

Tech, Data, Telecoms & Media

CIMA releases updated Rule and Statement of Guidance – Cybersecurity for Regulated Entities
Cayman Islands | 18 September 2020

The Cayman Islands Monetary Authority (CIMA) has updated its Rule and Statement of Guidance – Cybersecurity for Regulated Entities following feedback received during a private sector consultation. The rule, which sets out CIMA's requirements in relation to the management of cybersecurity risks, is a clear and precise directive that creates binding obligations, the breach of which may lead to a fine or regulatory action being taken by CIMA.