CAYMAN ISLANDS Law and Practice Contributed by: Jason Ta, Gemma Walters, Paul Walters and Ben Magahy Travers Thorp Alberga Contents 1. Fintech Market p.124 1.1 Evolution of the Fintech Market p.124 2. Fintech Business Models and Regulation in General p.125 2.1 Predominant Business Models p.125 2.2 Regulatory Regime p.125 2.3 Compensation Models p.126 2.4 Variations Between the Regulation of Fintech and Legacy Players p.126 2.5 Regulatory Sandbox p.126 2.6 Jurisdiction of Regulators p.126 2.7 No-Action Letters p.127 2.8 Outsourcing of Regulated Functions p.127 2.9 Gatekeeper Liability p.127 2.10 Significant Enforcement Actions p.127
Cuba
Cayman Islands
Jamaica
2.11 Implications of Additional, Non-Financial Services Regulations p.128 2.12 Review of Industry Participants by Parties Other Than Regulators p.128 2.13 Conjunction of Unregulated and Regulated Products and Services p.129 2.14 Impact of AML and Sanctions Rules p.129 2.15 Financial Action Task Force (FATF) Standards p.129 2.16 Reverse Solicitation p.129 3. Robo-Advisers p.129 3.1 Requirement for Different Business Models p.129 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers p.129 3.3 Issues Relating to Best Execution of Customer Trades p.129 4. Online Lenders p.130 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities p.130 4.2 Underwriting Processes p.130 4.3 Sources of Funds for Fiat Currency Loans p.130 4.4 Syndication of Fiat Currency Loans p.130 5. Payment Processors p.131 5.1 Payment Processors’ Use of Payment Rails p.131
5.2 Regulation of Cross-Border Payments and Remittances p.131 6. Marketplaces, Exchanges and Trading Platforms p.131 6.1 Permissible Trading Platforms p.131 6.2 Regulation of Different Asset Classes p.131 6.3 Impact of the Emergence of Cryptocurrency Exchanges p.131 6.4 Listing Standards p.132 6.5 Order Handling Rules p.132 6.6 Rise of Peer-to-Peer Trading Platforms p.132
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