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Caribbean

Cayman Islands

The Cayman Islands remains a globally significant fund domicile, with the VASP Act and refined registration regime providing structured pathways for digital asset activity.

regulatory maturity
Mature
market positioning
Fund Domicile
advisory suitability
High
institutional readiness
Established
A · Regulatory Scope

Scope, licensing and operational frame.

Scope of Regulation

The Virtual Asset (Service Providers) Act and its phased licensing rollout govern VASPs under CIMA supervision.

Who requires a licence

Exchanges, custodians, issuers and intermediaries operating from or with sufficient nexus to the Cayman Islands.

Restricted activities

Unregistered VASP activity; certain retail-facing services.

Permitted activities

Registered and licensed VASP activity under defined phases.

Practical & advisory implications

AML/CFT, governance and substance expectations align with international standards.

B · Regulatory Timeline

Evolution at a glance.

2020

VASP Act enacted.

2022

Phase II VASP licensing operational.

2023

Tokenised fund frameworks expand.

2025

Refined VASP supervisory expectations published.

C · News & Updates

Recent regulatory signals.

News2026-01-20

CIMA updates VASP registration guidance

Circular2025-12-18

Statement on tokenised fund administration

Enforcement2025-12-01

CIMA publishes 2025 VASP supervisory report

D · Mercury Advisory View

"Cayman remains structurally efficient for digital asset fund formation and certain VASP activities."

Mercury Regulatory Intelligence
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Related reports and direct advisory on Cayman Islands.