FinTech and Crypto - What are the differences?

FinTech and crypto are two related but distinctively different concepts. While some FinTech companies may incorporate crypto into their offerings, you would not interchange the terms. 

The Cayman Islands Government is committed to promoting economic growth and attracting high-quality FinTech companies to the region. The stunning natural beauty of the islands, along with world-class banking and the absence of income, capital gains, corporate, or sales tax, make it an attractive destination for companies to register. By implementing a Special Economic Zone (SEZ), the islands can accommodate various exempted companies and partnerships that can establish a physical presence in the islands.

In addition to the SEZ and its zone operator Cayman Enterprise City (CEC), TechCayman was also established. Their purpose is to encourage technology entrepreneurs to develop their businesses in the Cayman Islands. They also serve as hubs where the technology community can collaborate and build new programs and ecosystems. 

This development enables the Cayman Islands to offer FinTech-related activities, including but not limited to crypto exchange services, custodial services, initial coin offerings, and new technologies in both centralised and decentralised systems. 

Tech Cayman and CEC are enabling Crypto, blockchain and Web3 companies to reach a global scale. There are now over 300 companies operating out of CEC, including software developers and data scientists. Being based in Cayman has given them an edge over other firms when it comes time for purchasing decisions by customers who need products or services, but don't necessarily have strong ties with any specific region or country. The Island's location and accessibility to major financial hubs make it an ideal place for FinTech companies seeking to expand globally. 

Tech associations and societies are growing and working together to create helpful guidelines.  They are advocating the development of the Crypto and FinTech industries in partnership with the Cayman Islands Government and regulators.  

The Cayman Islands have emerged as a favourable regulatory environment for crypto businesses. The government's proactive measures in combating money laundering and terrorist financing while encouraging innovation and growth have made it an attractive location. Consequently, the Cayman Islands have become a hub for crypto hedge funds, exchanges, and related companies. 

When it comes to the regulatory framework in Cayman, here's a quick overview of who regulates what: 

• The Cayman Islands Monetary Authority (CIMA) regulates banks and other financial institutions. It also licenses banks and other financial institutions and approves new products they can offer. 
• The Securities Investment Business Act regulates persons carrying on securities investment business, including market makers, broker-dealers, securities arrangers, securities advisors and securities managers, in or from the Cayman Islands. 
• Virtual Asset (Service Providers) Act established a legal structure for virtual assets operating within the country. As a result of this act, Cayman has the framework to regulate digital assets and identify and mitigate potential risks. 

The local labour market is strong and growing, as are opportunities in Fintech and Crypto industries. FinTech companies constantly expand and require talent with diverse skills and expertise to succeed. 

With a strong track record of supporting FinTech and cryptocurrency companies in recent years, Cayman is an excellent location for those looking to further their career in this new and exciting field. 

Our IT, FS and Legal Teams all have specialist experience recruiting for the positions required for FinTech and Crypto companies.  If you are a financial services, IT or legal professional looking for a new position in this evolving sector, our team is here to help. Please view our current jobs here.