The Cayman Islands Government has published legislative amendments establishing a framework for tokenised investment fund structures. The amendments, which were published on 24 March 2026 following their passage in Parliament earlier in the month, introduce clarification across existing funds and virtual asset legislation.
The changes are effected through amendments to the Mutual Funds Act, the Private Funds Act and the Virtual Asset (Service Providers) Act. Together, they address the regulatory treatment of tokenised interests in investment funds within the Cayman Islands.
Background
Tokenised funds have been utilised in the Cayman Islands for several years. However, before these proposed changes such funds were generally required to register as a token issuer under the Virtual Asset (Service Providers) Act and fall within the regulatory scope of that Act.
