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ARTICLE · 24 MARCH 2026

VASP, Mutual & Private Funds Amendment Bills Approved

Stuarts Humphries
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Parliament has now approved a coordinated package of amendments to the Virtual Asset (Service Providers) Act, the Mutual Funds Act and the Private Funds Act to give clearer statutory treatment to tokenised fund structures...

Cayman IslandsFinance and Banking
Chris Humphries
Chris Humphries
Jonathan McLean
Jonathan McLean
Megan Wright
Megan Wright
Joseph Bates
Joseph Bates
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Parliament has now approved a coordinated package of amendments to the Virtual Asset (Service Providers) Act, the Mutual Funds Act and the Private Funds Act to give clearer statutory treatment to tokenised fund structures in the Cayman Islands. In substance, the VASP amendment draws a clearer boundary between Cayman's virtual asset regime and its existing funds regime by confirming that the issuance of digital equity tokens by regulated tokenised mutual funds, and digital investment tokens by regulated tokenised private funds, is not treated as a "virtual asset issuance" for VASP purposes. It also aligns core definitions, including digital equity tokens, digital investment tokens, tokenised mutual funds and tokenised private funds, with the Mutual Funds Act and Private Funds Act, and repeals the prior 2025 amendment Act so the framework sits in one cleaner, updated legislative package.

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