News & Insights

VASP Amendment Bill Simplifies Registration Scheme for Tokenized Funds in Cayman

The Virtual Asset (Service Providers) (Amendment) Bill, 2025 (the “VASP Amendment Act”) proposes to amend 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 “tokenized” funds from the requirement to register under the Virtual Asset (Service Providers) Act (2020 Revision) (“VASP Act”) as a VASP entity.

Previously it was unclear whether tokenized funds required double registration under the VASP Act, as well as the Mutual Funds Act, but the VASP Amendment Act now makes it clear that tokenized 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 tokenized funds to be registered in the Cayman Islands.

This article forms part of the GGI Global Alliance FYI Global Mobility Solutions Newsletter, published in fall 2025. Access the full GGI newsletter here.

Should you require any assistance regarding the new implications of the VASP Amendment Act or setting up a tokenized fund in the Cayman Islands please contact Stuarts’ Managing Director and Head of Funds, Chris Humphries.

Contact our experts for further advice

Chris Humphries

Managing Director and Head of Funds

Tel:+1 (345) 814-7911

,

Associate

Tel:+1 (345) 814-7934

This publication is for general guidance and is not intended to be a substitute for specific legal advice. Specialist advice should be sought about specific circumstances.

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