The Q1 Regulatory Update provides an overview of the main legal developments in the Cayman Islands and the British Virgin Islands from 1 January 2026 to 31 March 2026.
It outlines key amendments to legislative frameworks for both jurisdictions.
Cayman Islands
1. Tokenised Fund Acts: The Mutual Funds (Amendment) Act, 2026, the Private Funds (Amendment) Act, 2026, and the Virtual Asset (Service Providers) (Amendment) Act, 2026
On 25 March 2026, the Cayman Islands Parliament passed three complementary amendment Acts amending the Mutual Funds Act (the “MFA”), the Private Funds Act (the “PFA”), and the Virtual Asset Service Providers Act ("VASP Act"). Together, these updates establish a formal regulatory framework for tokenised investment fund structures and resolve certain material ambiguities as to the regulatory status of tokenised funds.
