Payments in cryptocurrencies through Cayman-based businesses are becoming more common and increasingly used in high-value transactions, experts have said.
The news came after Cayman-registered CoinPayments teamed up with US-based Jetcraft, a specialist in business jet sales, purchases and trades, to use a blockchain-based collaboration for cryptocurrency transactions by clients of the aircraft firm.
Haymond Rankin, Cayman Finance’s associate director for fintech and the virtual currency sector, told the Compass, “Blockchain technology continues to reshape industries around the world and the partnership between CoinPayments and Jetcraft to enable crypto payments in private aviation is a clear example of that shift in action.
“CoinPayments, a Cayman exempted company, is one of many Cayman fintech success stories that show how our jurisdiction continues to serve as a launchpad for globally minded technology firms,” he said, adding, “As more sectors embrace this transformation, Cayman is well-positioned to continue playing a key role in the emerging virtual asset economy.”
Alex Alexandrov, the chairman of CoinPayments, said in a press release that integration of its “secure payment infrastructure” with Jetcraft’s business served a growing demand from the wealthy and corporations to use their digital assets to buy aviation services.
He added the use of cryptocurrency offered payment flexibility, reduced transaction times and more privacy.
Jahid Fazal-Karim, Jetcraft owner and chairman, said many of its clients were major players in the technology, AI and entrepreneurial sectors and were comfortable with the digital world, and the company wanted to accommodate them.
“However, we’re often constrained by outdated processes and systems. By partnering with CoinPayments, we’re bringing forward an innovative payment solution that matches the forward-thinking mindset of our customers,” he said.
Specialist brokers and the real estate sector agreed that younger people were more at ease with the use of cryptocurrency and that it was expected the market for transactions using virtual currency would increase.
Cayman company Parallel was set up three years ago to give crypto investors a safe and reliable way to convert cryptocurrency, which must be changed into US or Cayman dollars to buy properties in the jurisdiction.
‘More mainsteam’
Laura Birrell, Parallel CEO, told the Compass, “Our core business line is real estate, but we have also facilitated the acquisition of real assets – we have done a boat and a private jet.”
She agreed that cryptocurrency will become more and more important – and that Cayman was well-placed to take advantage of the trend.
Birrell, a lawyer, said that once cryptocurrency became more mainstream, it would help stabilise the asset, which was more volatile than traditional currencies, adding, “It’s very clear cryptocurrency is not just a fad – it’s not going anywhere.
“I would say absolutely this is going to become more and more mainstream. People will expect to be able to buy things with cryptocurrency.”
She added, “I think Cayman has made really great strides in trying to stay ahead of this trend by implementing its framework, which was one of the earliest in the world.
‘Well-positioned’
“There are still difficulties, but Cayman is really well-positioned. In another three years again, I think we will have seen advancement in Cayman and globally.
“It will only become more and more common,” she said, adding that Cayman is well-placed “with its framework, its regulator and the businesses that are already here”.
Michael Joseph, of Property Cayman, who in 2022 was involved in one of the earliest property deals where cryptocurrency was used as part-payment with the agreement of the seller and the buyer, said cryptocurrency transactions were still relatively rare.
“It’s not as common as you would expect. We thought there would be a flurry, but there hasn’t been,” he told the Compass.
But, Joseph added, “There have been others and I think we can anticipate there will be more because that’s generally the direction the world is going in.
“It comes up in conversation every now and then and it’s most often a younger purchaser, North American, usually.”
Joseph who acted for the seller in the 2022 sale, with RE/MAX representing the buyer, said due to the strict Cayman laws designed to deter terrorist funding and money laundering, Cayman company Parallel was signed up to act as escrow agent for that transaction.
“I refer everyone to Parallel – that’s the real safety net,” he added, noting that he relies on the company “to ensure everything is 100% within the framework of the law”.
