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ARTICLE · 30 MARCH 2026

Regulatory Clarification For Tokenised Funds

Carey Olsen
Carey Olsen
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Carey Olsen

Carey Olsen

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The Cayman Islands has amended its regulatory framework for both open and closed-ended investment funds to clarify the status of funds issuing digital representations of investment interests ("Fund Tokens")...

Cayman IslandsFinance and Banking
Chris Duncan
Chris Duncan
Jarrod Farley
Jarrod Farley
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Briefing Summary:

The Cayman Islands has updated its investment funds regulatory framework to clarify the treatment of tokenised fund structures and introduce a dedicated regime for their oversight by CIMA. The amendments remove uncertainty around the application of virtual asset legislation and introduce new registration, disclosure, transfer control and record keeping obligations for these funds. These developments reinforce the Cayman Islands’ position as a leading jurisdiction for innovative and compliant fund structures.

The Cayman Islands has amended its regulatory framework for both open and closed-ended investment funds to clarify the status of funds issuing digital representations of investment interests ("Fund Tokens") to their investors ("Tokenised Funds").

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