James Kingston works in the digital asset industry and is the author of Profitable Peripherals: Maximising the potential of British CDOTs. He came aboard the KC3 to explain why the Cayman Islands, Jersey, and Britain’s 17 overseas territories aren’t tax havens draining the exchequer—they’re innovation labs pumping foreign capital into British banks and employing British lawyers to service Chinese deals.
James, Tom, and Calum on:
Why the narrative that CDOTs are a “shadow empire for British finance” draining tax revenue is measurably wrong—Jersey alone supports a million UK jobs annually through £1.4 trillion of intermediated capital, and 68% of deposits in Jersey banks flow back to Britain despite only 29% coming from the UK,
The comparative advantage problem: 70% of the world’s hedge funds are domiciled in the Cayman Islands ($2.7 trillion, more than the US), and 66% of British Virgin Islands assets concern Greater China deals—meaning British lawyers in London tax revenue from Shenzhen transactions they’d never otherwise access,
Why these jurisdictions succeeded where hundreds of other offshore centres failed: international investors trust the common law system and know that if something goes wrong, they can ultimately rely on London—but if Britain ever seized the money (as one MP proposed to fund the NHS), the entire edifice would collapse overnight,
The innovation case: Jersey passed data trust laws, the Isle of Man is releasing Data Asset Foundation legislation, and the Cayman Islands created legal structures for DAOs—Britain should partner with CDOTs as regulatory sandboxes for tech rather than just finance, creating British jobs in data stewardship and AI development,
Why the “finance curse” criticism—that Britain’s best minds waste their lives writing tax-efficient contracts rather than founding energy startups—is the most compelling argument against CDOTs, but also why abandoning comparative advantage in pinstripes would be economically illiterate,
The security question: can Britain actually defend these territories in a multipolar world, or should we follow Philip Pilkington’s argument that claiming places you can’t defend is a fiction? James says giving things up willy-nilly (looking at you, Chagos) isn’t the answer—economic activity strengthens claims, like the East India Company did,
The vassalisation problem: Britain spent decades being completely open to the world, but CDOTs are really nodes in a US financial imperium—British tech stacks run on American platforms, and conflating US interests with British interests means we’ve forgotten to ask what independent leverage looks like,
James’s 50-year vision: British spaceships launched from Ascension Island, Jersey-domiciled mining outfits in the Oort Cloud, interstellar cargo ships flagged with the Isle of Man, and Britain remaining in the top tier of nations with trillion-dollar companies built here rather than accepting managed decline as a “normal European country.”
