Forex trading is legal in the Cayman Islands under the Securities Investment Business Act, which regulates securities activities including dealing in contracts for difference on foreign exchange. The Cayman Islands Monetary Authority oversees securities investment business, which includes buying, selling, arranging, managing, or advising on securities such as options, futures, and contracts for differences (1).
Any person incorporated or registered in the Cayman Islands who carries on securities investment business must obtain a licence or register with CIMA unless they qualify for specific exemptions. The Securities Investment Business Act applies to Cayman Islands companies, partnerships, and foreign entities registered in the Islands, with no physical presence requirement for the Act to apply (1).
"The Cayman Islands is recognised as an international financial centre, offering a wide range of sophisticated financial products and services. Regulated financial services sectors include securities investment businesses."
CIMA regulates financial services in accordance with internationally applied standards promulgated by organizations including the International Organisation of Securities Commissions and the Financial Action Task Force. The Authority's regulatory philosophy recognizes the international character of financial services and markets while maintaining the competitive position of the Islands from both consumer and supplier perspectives (2).
Source:
https://www.harneys.com/media/sdxjhuzv/guide-securities-investment-business-in-the-cayman-islands.pdf
https://www.cima.ky/upimages/commonfiles/RegulatoryHandbookanditsAppendices-Volume1_1728942048.pdf
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
