Tel：+86 400 118 5939Address：Room 2810B, Block A, Tianli Central Plaza, Coastal City, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province
Email：info@hyintern.com
+86 400 118 5939
牌照号：TC004750
Tel：+86 400 118 5939In recent years, due to the application of blockchain technology, blockchain ICO companies have emerged. These companies mainly engage in the initial issuance of tokens for blockchain projects, raising general digital currencies such as Bitcoin and Ethereum, and other businesses. However, many countries in the world are currently adopting a wait-and-see or even banning attitude towards ICOs. The US Securities and Exchange Commission (SEC) has issued subpoenas to companies suspected of ICO fraud, intensifying efforts to crack down on ICOs; The Swiss Financial Market Supervisory Authority has also released an "ICO Guidelines", stating that ICOs are subject to anti money laundering regulations. With the increasing global demand for stricter regulation of ICOs, major cryptocurrency exchanges are considering relocating overseas for ICOs. The Cayman Islands, on the other hand, have relatively friendly regulatory laws and taxation towards overseas cryptocurrency exchanges.
Due to China's explicit ban on ICOs, they are considered illegal activities. A domestic blockchain ICO company has approached Hongyuan International, hoping that Hongyuan International can help solve its legal issues. Hongyuan International Cayman Company Registration Professional Consultant recommends that it establish a company in Cayman and relocate its business scope to Cayman. This will not only gain recognition from the Cayman government, but also enjoy a series of benefits such as exemptions from profits tax. Half a year after helping Hongyuan International complete its Cayman company registration, the company successfully raised tens of millions of dollars due to its good operation and recognition from top investment institutions in the United States.
In terms of regulation, SIBL is the main regulation for securities and other related business investments in the Cayman Islands, and ICO is not considered a type of securities regulated by SIBL. In terms of taxation, the Cayman Islands Companies Law (revised in 2013) (amendment) specifies the types of companies that primarily operate outside the Cayman Islands, which are referred to as "exempt companies" or offshore companies and do not need to declare or pay taxes. Cryptocurrency exchanges registered in the Cayman Islands and operating overseas are in this form.
Despite the sound regulations and good international reputation of the Cayman Islands, the cost of applying to establish an exchange is relatively high, license applications are tight, and there is an excess of ICOs. Therefore, such registration locations are more suitable for large exchanges with well-established systems and sufficient funds, such as Block.one and Bitgogo.io.
Overall, many countries are still adopting a wait-and-see attitude towards ICOs, and the relevant regulations for ICOs are still incomplete. However, as a fast fundraising method, ICOs continue to attract cryptocurrency exchanges. For exchanges looking to shorten the application process and obtain local regulatory support, some overseas island countries will still be the best choice.
Scan QR code to follow 【Hongyuan International WeChat】
Email: info@hyintern.com
Hotline: +86 400 118 5939
