Cayman Islands Legislation
Private Funds (Amendment) Bill, 2026
Government bill, sponsored by the Ministry of Financial Services and Commerce (FSC)
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Gazetted
Published in the Gazette
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Introduced
5 March 2026
First appeared on the order paper
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Enacted
24 March 2026
Act 6/2026
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In force
What this law does
This bill updates Cayman Islands law to regulate private funds that use digital tokens to represent investments. It creates new rules for these 'tokenised private funds,' including requirements for record-keeping, disclosure of risks, and oversight by the financial authority.
- Defines new terms: 'digital investment token' (digital representation of an investment), 'tokenised private fund' (funds using digital tokens), and 'partnership interest'
- Requires tokenised private funds to maintain secure records of token issuance, sales, transfers, and ownership, and make them available to regulators
- Mandates annual confirmation from fund operators that records are properly maintained, and restricts token transfers to only those approved by the fund operator
- Requires disclosure of specific risks related to digital tokens (cybersecurity, transferability, etc.) in offering documents and explanation of how risks are managed
Who it affects: Private fund operators using digital tokens, private fund investors, and financial services regulators in the Cayman Islands
This summary is AI-generated from the official document and may contain errors; it is not legal advice. Always consult the source text below.
Official documents
Debated in Parliament
Hansard sittings whose records mention this law: