Why more Web3 companies are relocating to crypto-friendly jurisdictions like the Cayman Islands in 2026.
While the broader crypto market continues to evolve amid regulatory flux and macroeconomic headwinds, blockchain and Web3 venture capital activity remains resilient. More than $20 billion in venture capital was deployed into crypto and blockchain startups across 2025, the largest annual total since 2022, underpinned by strong later-stage financings globally, according to Galaxy. Deal-level activity has become increasingly concentrated, with fewer but larger rounds reflecting broader trends across digital asset financing.
This momentum is driving founders to seek out crypto-forward jurisdictions that offer regulatory clarity, scalable legal structures and environments built for compliance, global hiring and sustainable growth. Today’s tech leaders aren’t just relocating, they’re establishing strategic international hubs designed to support long-term execution and confidence at scale. As Web3 and crypto companies formalise global structures and prepare for growth, the Cayman Islands is increasingly considered at the point where those structures are designed.
How to set up a Web3 company in the Cayman Islands.
TechCayman’s Sara Marino Ellis supports technology and Web3 companies looking to scale globally by establishing a presence in the Cayman Islands. In this Q&A, she answers the top 10 questions founders ask when considering entity setup or international expansion.
1. What challenges do Web3 startups face when expanding internationally?
Founders in this space typically face two major challenges: inconsistent crypto regulations across jurisdictions and immigration barriers that slow access to global talent. Uncertainty around token models, DAOs and digital asset classification, combined with complex relocation processes, can stall launches, delay hiring and increase legal and operational risk. The right partners and expert support are essential for scaling globally with confidence.
2. How does the Cayman Islands help Web3 founders navigate crypto regulation?
Cayman offers legal clarity and international credibility. We operate under English common law, with a transparent legal system and a strong reputation for handling complex financial and digital structures. Cayman also aligns with global standards set by the OECD, FATF, and other international compliance bodies.
The Cayman Islands’ Virtual Asset (Service Providers) Act (VASP Act) provides a structured, phased licensing framework that is now fully implemented across key digital asset activities. Licensing applies to digital asset custody, exchanges and certain token issuance activities, reinforcing Cayman’s reputation as a globally recognized, compliance-focused jurisdiction. Cayman’s alignment with international information-sharing standards, including the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework (CARF), further supports regulatory clarity for companies operating and scaling across borders.
3. What are the best legal structures for Web3 companies in the Cayman Islands?
Cayman provides a dynamic regulatory environment and adaptable legal frameworks tailored to support a broad spectrum of Web3 and emerging technology ventures (from decentralized networks to SaaS platforms and infrastructure providers). To meet international compliance and economic substance requirements, many of our clients choose from one of three strategic entity structures based on their operational goals and regulatory obligations:
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Foundation Companies: Often chosen by DAOs, tokenized ecosystems, or family offices. They operate without shareholders, support on-chain governance and allow for decentralized control.
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Exempt Companies: A popular choice for token developers, IP-focused startups and service-based tech firms. They offer flexibility, global credibility and scalability.
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CIMA-Regulated Entities: Required under the VASP Act for projects involving custody, trading or issuance of digital assets. These structures offer a compliant, internationally respected regulatory path.
4. Is the Cayman Islands a good fit for early-stage Web3 and tech startups, or just large companies?
Cayman’s tech ecosystem is a strong fit for founders at every stage, from early startups to scaling ventures. Whether you’re launching a protocol, managing digital assets or structuring for global expansion, The Cayman Islands offers a compliance-first foundation built for growth. We’ve seen companies of all sizes and at various stages across fintech, DeFi and emerging tech choose the Cayman Islands to scale smarter and faster.
5. What is the immigration process for relocating to the Cayman Islands?
The Cayman Islands offers a clear, efficient work permit process and permanent residency options for many foreign nationals. Compared to other jurisdictions, Cayman’s immigration system is transparent and business-friendly, ideal for Web3 companies expanding globally.
TechCayman offers an even faster pathway, with expedited permit approvals in as little as 10 business days, plus end-to-end relocation support. We simplify the entire process, from work permits to integration giving teams quicker, easier access to a crypto-friendly, globally connected environment.
6. How does the Cayman Islands support Web3 teams relocating operations?
While many Web3 companies operate remotely, an increasing number are choosing to move to Cayman to establish a strategic physical presence. This relocation supports stronger leadership visibility, enhanced investor confidence and a solid foundation for global expansion. The top business advantages our clients often cite include:
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Time zone alignment with EST, ideal for working with U.S. and Canadian markets
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20+ daily direct flights to major cities like New York, Miami and Toronto
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A reliable business environment with high-speed internet and enterprise-grade infrastructure
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Proximity to a growing network of Web3 founders, advisors and investors, with increasing access to global capital and strategic partnerships
7. Why are Web3 teams moving to the Cayman Islands for lifestyle and team well-being?
The Cayman Islands blends business efficiency with an exceptional quality of life, which is a major advantage for recruiting and retaining top tech talent. This combination of lifestyle and professionalism makes Cayman a leading destination for growing Web3 teams. These benefit from:
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A safe, stable and family-friendly environment
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Access to world-class healthcare and top-tier international schools
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A multicultural community with strong global connectivity
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A warm climate with year-round sunshine
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A wellness-focused lifestyle that supports work-life balance and long-term team well-being
8. What’s the Web3 and crypto ecosystem like in the Cayman Islands?
Cayman is home to a vibrant and expanding Web3 ecosystem, supporting a growing number of blockchain, fintech, DeFi and tokenized projects. This environment provides a strong foundation for companies to scale with speed, support and global credibility. Key highlights include:
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A deep pool of legal, compliance, and advisory professionals
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Active industry groups like Blockchain Association of the Cayman Islands (BACI), Code(Cayman), The Cayman Crypto Community and Cayman Finance
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A culture of public-private collaboration that fosters innovation
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Proximity to a global network of Web3 founders, advisors, and capital sources
9. How does TechCayman support Web3 companies and founders in the Cayman Islands?
We’ve successfully relocated and supported blockchain, crypto and Web3 companies and founders from around the world. Our clients range from early-stage startups to globally scaling teams. We provide the pathway and ecosystem access needed to grow in a Web3 supportive jurisdiction. Our TechCayman Sponsored Enterprises benefit from deep expertise, strong local connections and tailored support that includes:
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White-glove relocation services for founders, teams, and their families
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Expedited work permits, with approvals in as little as 10 business days
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No restrictions on office locations, allowing companies to set up anywhere across the Cayman Islands
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Connections to vetted legal, corporate and compliance professionals
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Direct access to regulators, accelerators and ecosystem stakeholders
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Introductions to a growing network of Web3 founders, advisors and capital partners
10. What’s the best way to explore launching a Web3 business in the Cayman Islands?
If you’re thinking about relocating, launching a Web3 company or exploring how the Cayman Islands could support your global growth, we’re a great first step in that journey. We offer personalized support and can connect you with a trusted network of legal, regulatory and financial experts to help you move forward with clarity and confidence.
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