The European Union decided on Tuesday to remove the Cayman Islands from its black list of tax havens.
The Cayman Islands are a very popular jurisdiction for cryptocurrency companies. It was blacklisted by the EU in February of this year, so it was on the terrible list for less than six months. In 2019, the six exchanges located there were responsible for international Bitcoin transactions (BTC) worth more than 1.5 billion US dollars.
Although these numbers are pale compared to the world market leader, the Seychelles, whose 12 exchanges were responsible for $ 36 billion, the Seychelles stay on the blacklist and they are categorized as a nation “not cooperating with the EU or not fully fulfilling its obligations”. One of the most important stock exchanges in Seychelles is BitMex, which recently got into troubled waters with the United States government.
according to Allison Nolan, Founder of Athena International Management, a company providing governance solutions to the international investment community, The Cayman Islands offer “strict regulation” with strict controls on your customers and to combat money laundering:
Part of the Cayman Islands’ strong framework is the innovative approach to regulating virtual assets. It is for this reason that the Cayman Islands Government enacted the Virtual Asset (Service Provider) Act of 2020 in May, which provides for the regulation of virtual asset companies for the registration and licensing of those who provide Virtual Asset Services.
Nolan emphasized that too local regulators open their doors to legitimate cryptocurrency companies, that, according to their help, local businesses:
“The approach here is really very good for the crypto room because it ensures that these providers are monitored.”
He also noticed that all Locally regulated companies are subject to strict cybersecurity requirements.
The blacklist was prepared by the European Parliament in response to information contained in the Panama Papers. It is unlikely to be the youngest FinCen filtration influenced the decision to remove the Cayman Islands from the list (mentioned in at least 652 transactions). The list is updated every semester, with the next expected in early 2021.