CAYMAN ISLANDS Law and Practice Contributed by: Jason Ta, Gemma Walters, Paul Walters and Ben Magahy, Travers Thorp Alberga
in 10.11 Virtual Currencies ). Generally speaking, an NFT will fall outside the definition of a “virtual asset”, although that will depend on the features and char - acteristics of the NFT itself. Consideration must also be given to whether the NFT constitutes a security under SIBA. The same analysis applies to NFT platforms. 10.13 Stablecoins The Cayman Islands does not have a separate or stan - dalone regime for stablecoins. Stablecoins are subject to the same requirements as any other virtual asset, pursuant to the VASP Act (and in more limited circum - stances, SIBA). If a Cayman Islands entity carries on (or purports to carry on) virtual asset services with respect to stable - coins, the entity will require registration or licensing (as applicable) under the VASP Act. If the stablecoins rep - resent or can be converted into any of the securities listed in SIBA (which includes shares, options, futures etc), the entity will require authorisation under SIBA. 11. Open Banking 11.1 Regulation of Open Banking There are currently no standalone regulations in the Cayman Islands with respect to open banking. 11.2 Concerns Raised by Open Banking Banks and technology providers are subject to the Data Protection Act. Banks and technology providers may look to collaborate to develop and implement best practices for data security and privacy in open banking.
deceive another party, leading to a false belief or action; • false representation or concealment – the defend - ant makes a false representation (oral or written) or conceals material information. The representation can be about facts, intentions or future events; • intent to cause gain or loss – the defendant acts with the intent to (i) gain something (eg, money, property, advantage); or (ii) cause loss to another party (eg, financial harm, deprivation); • reliance by the victim – the victim relies on the false representation or concealment; • their reliance leads to a detrimental consequence (eg, financial loss); • causation – the defendant’s fraudulent act directly causes the victim’s loss or harm; • materiality – the false representation or conceal - ment must be material – meaning it significantly affects the victim’s decision-making process; • knowledge or recklessness – the defendant must either knowingly make the false representation or act recklessly (ie, not caring whether it is true or false); and • civil and criminal aspects – common law fraud can lead to both civil (compensation, restitution) and criminal (penalties, imprisonment) consequences. As an example, Section 255 (1) of the Penal Code provides that a person who dishonestly, with a view to gain for themselves or another or with intent to cause loss to another (a) destroys, defaces, conceals or falsi - fies any account or any record or document made or required for any accounting purpose; or (b) in furnish - ing information for any purpose, produces or makes use of any account, or any such record or document as aforesaid, which to that person’s knowledge is or may be misleading, false or deceptive in a material particular, commits an offence and is liable to impris - onment for seven years. In addition, knowingly or wilfully supplying false or misleading information to the Cayman Islands Tax
12. Fraud 12.1 Elements of Fraud
In the Cayman Islands, the elements of common law fraud align with those recognised in England and other common law jurisdictions and generally include: • dishonesty – fraud requires a dishonest act or representation. The defendant must intentionally
Information Authority (TIA) is an offence. 12.2 Areas of Regulatory Focus
While CIMA does not publicly rank specific types of fraud in order of priority, there are several areas where it has demonstrably focused its efforts:
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