Cayman Islands Digital Assets - December 2025 Update

The Cayman Islands continues to be one of the leading offshore jurisdictions for digital assets, with several market leaders and tier 1 projects being established in the Cayman Islands. The Cayman Islands Virtual Asset (Service Providers) Act ("VASP Act"), as revised, creates a clear framework for regulating virtual asset service providers; since the recent implementation of phase 2 (the licencing regime), there has been a marked increase of applicants seeking regulatory approval from the Cayman Islands Monetary Authority ("CIMA"). Coupled with a strong regulatory framework, the Cayman Islands provides unique corporate structuring options which fit well with the decentralisation ethos of this space, being the Cayman Islands Foundation. These factors have led to a mature crypto and tech community being established in the Island, including founders, service providers, market makers and advisors. Investor familiarity (particularly in the US) continues to drive the growth