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Source: Aiying Compliance
The Cayman Islands has shined in the digital revolution. The number of web3 companies established in recent years has increased significantly.If you maintain the current development speed and continue to optimize legislation, the expansion speed will be inevitable.”This article will explore the key factor to promote this growth and explain why the region is attractive to companies involved in the fields of web3 and virtual assets.
For more than 30 years, the Cayman Islands has been the world’s leading offshore investment funds (including common funds and private equity funds).Its excellent reputation benefits from the following points:
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Innovative legislative support;
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No tax and foreign exchange control;
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The mature and professional service providers have been existed for a long time.
These all ensure the supervision and specifications of investors’ responsibilities and provide investors with a safe and reliable environment.
In the vibrant Web3 field, the Cayman Islands stand out by virtue of its forward -looking legislation, especially the innovative law of the “Virtual Assets Service Provider” (VASPA) provides the growth of Web3, cryptocurrencies and other virtual asset companies.power.Vaspa has established a strict regulatory framework supervised by the Cayman Islands Monetary Administration (CIMA), providing these companies with a safe and transparent growth environment.
Just this month, the Dydx Foundation posted on the X platform that the DYDX community has voted to support the DYDX operating trust fund to transform into the Cayman Islands Foundation, with a final support rate of 93.1%.
Their next steps:
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Establish the DYDX Operation Foundation (DOF) as a foundation company in the Cayman Islands and appoint key job personnel;
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Drafted DOF’s memorandum and articles of association, and through DYDX consensus, effectively controlled the DYDX community;
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End the trust period, so as to terminate DOT;
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The trustee needs to perform related transfer operations, namely multi -party signatures, domain names, accounts, contracts, etc.
In addition, the establishment of a special economic zone such as Cayman Enterprise City (CEC) and the introduction of the Special Economic Zone Law also provide a driving force for the development of the Web3 on the Cayman Islands.
What is the best structure to set up a web3 enterprise?
Choosing the correct company structure is very important when setting up Web3, DAO or Defi companies, and the Cayman Islands provide a variety of flexible choices.The following are the three most popular structures in the Cayman Islands Web3:
1. Foundation company: Foundation company is the first choice for DAOS, Web3 and DE-Fi companies.Several key reasons for choosing it include:
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Responsibility protection: Foundation companies provide strong protection for stakeholders and avoid personal responsibilities.
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The flexibility of trust: This structure has the adjustability of trust, providing a flexible framework for enterprise operations.
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No shareholder existence: Unlike traditional companies, the foundation company does not have shareholders and supports more decentralized operating models.
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Pay attention to the purpose: Foundation companies focus on the purpose of its setting, which is in line with the unique goals and functions of Web3 companies.
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Exemption Co., Ltd.: Many web3s and virtual asset companies choose to be exempted by the issuer of token issuers because it is a tax neutral tool.In addition, the Cayman Islands’ Special Economic Zone Company is also a form of exemption limited liability companies established in a special economic zone and enjoys specific discounts.
2. Fund: The Cayman Islands are the establishment of a variety of regulatory common funds and private equity funds. These funds are suitable for web3 and blockchain applications.
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Common fund: Under the supervision of the Cayman Islands Monetary Administration (CIMA), such as registered common funds, the initial minimum equity interests that investors can buy are $ 100,000, or their equity interests are listed on the approved stock exchange.
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Private placementfund: Private funds are supervised in accordance with the Private Fund Law and operated as a closed fund.
In summary, the Cayman Islands continue to maintain its leading position in Web3 and virtual asset expansion.Whether through the foundation company, the diversified fund structure, or the advantages provided by the special economic zone, choose the appropriate legal framework to strategically make the Cayman Islands the ideal place for the establishment and cultivation of Web3, DAOS and DE-Fi companies.For those who seek a vibrant environment and legal infrastructure that is conducive to digital innovation, the Cayman Islands is undoubtedly a hot spot for the future of Web3.
