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EU removes this crypto hotspot from tax haven blacklist, clearing path for further adoption

EU removes this crypto hotspot from tax haven blacklist, clearing path for further adoption

The EU determined to take away Cayman Islands from its blacklist of tax heavens on Tuesday.

The Cayman Islands is a well-liked jurisdiction for crypto companies. It was added to the EU’s blacklist in February of this yr, so it has spent fewer than six months on the listing. In 2019, the six exchanges domiciled there have been accountable for over $1.5 billion in worldwide Bitcoin (BTC) transactions.

Although these numbers pale compared to the worldwide chief — the Seychelles, whose 12 exchanges have been accountable for $36 billion, the Seychelles stay on the blacklist and are categorized as a nation that “doesn’t cooperate with the EU or has not totally applied its commitments.” One of many main exchanges primarily based on the Seychelles is BitMex, which lately ended up within the scorching water with the U.S. authorities.

In response to Allison Nolan, founding father of Athena Worldwide Administration, an organization that gives governance options to the worldwide funding group, the Cayman Islands present “sturdy regulation” with stringent know-your-customer and anti-money laundering controls in place:

A part of the sturdy framework for the Cayman Islands is the progressive method to the regulation of digital belongings. So, the Cayman Islands authorities enacted the Digital Property (Service Suppliers) Legislation 2020, in Could. It supplies for the regulation of digital asset companies and for the registration and licensing of individuals who’re offering digital belongings providers.

Nolan additionally emphasised that the native regulators welcome authentic cryptocurrency enterprise, which she believes helps native companies:

“The main target right here actually is superb for the crypto area, as a result of what it is doing is it is ensuring that there is an oversight when it comes to these suppliers.”

She additionally famous that every one native regulated companies are topic to stringent cybersecurity necessities.

The blacklist was created by the European Parliament as a response to the data contained within the Panama and Paradise papers. It’s unlikely that the newest FinCen leak has figured into the choice to take away the Cayman Islands from the listing (it’s talked about in at the least in 652 transactions). The listing will get up to date semiannually with the subsequent one anticipated in early 2021.

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