VASP Amendment Act simplifies registration scheme for tokenised funds in Cayman Islands

by Chris Humphries

The introduction of the Cayman Islands’ Virtual Asset (Service Providers) (Amendment) Act, 2025 (the “VASP Amendment Act”) amends the definition of what constitutes a “virtual asset issuance” and “issuance of virtual assets” to exempt entities which issue equity interests and are already, or will be, registered under the Mutual Funds Act (2025 Revision), Private Funds Act (2025 Revision), and Securities Investment Business Act (2020 Revision).

This essentially exempts “tokenised” funds from the requirement to register under the Virtual Asset (Service Providers) Act (2020 Revision) (the “VASP Act”) as a VASP entity.

Previously it was unclear whether tokenised funds required double registration under the VASP Act, as well as the Mutual Funds Act. The VASP Amendment Act now makes it clear that tokenised funds are exempt from registration under the VASP Act.

This is a welcome change for fund managers, investment funds, investors, and crypto funds, and will expeditiously speed up the process for tokenised funds to be registered in the Cayman Islands.

Should you require any assistance regarding the new implications of the VASP Amendment Act or setting up a tokenised fund in the Cayman Islands please contact me.

Chris Humphries, managing director of Stuarts Humphries, is a trusted Cayman Islands lawyer with over 25 years’ experience. Recognised globally, he has guided nearly 1,000 fund registrations and advises on investment funds, fintech, corporate, and regulatory law.

Global Mobility Solutions Cayman Islands Stuarts Humphries