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ARTICLE · 14 OCTOBER 2026

Cayman Islands Digital Assets - October 2026 Update

Carey Olsen
Carey Olsen
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Carey Olsen

Carey Olsen

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The Cayman Islands has introduced significant regulatory developments for digital assets, including a dedicated framework for tokenised funds, enhanced AML and sanctions rules, and strengthened market conduct requirements for virtual asset service providers. These changes provide greater regulatory certainty while reinforcing the jurisdiction's position as a leading hub for digital assets and fintech innovation.

Cayman IslandsFinance and Banking
Chris Duncan
Chris Duncan
Simon Galante
Simon Galante
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Tokenised Funds

Since our previous update, the Cayman Islands has implemented amendments to the Mutual Funds Act, Private Funds Act and Virtual Asset (Service Providers) Act to provide a dedicated regulatory framework for tokenised funds. The amendments clarify that the issuance of tokenised fund interests by CIMA-regulated funds does not constitute a "virtual asset issuance" for the purposes of the VASP regime and therefore does not require separate approval under the VASP Act. The new framework also introduces specific requirements relating to registration, disclosures, transfer restrictions, record-keeping and ongoing regulatory oversight. These developments provide welcome certainty for fund sponsors seeking to utilise tokenisation technologies while operating within Cayman's established investment funds framework. See our article Cayman Islands: Regulatory Clarification for Tokenised Funds | Carey Olsen for more details.

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