How Cayman and BVI support digital assets, tokenisation and Web3 projects for Asian clients

As digital and fintech innovation continue to progress in the APAC region, offshore jurisdictions such as the Cayman Islands and the British Virgin Islands are increasingly chosen by Asian clients seeking to structure cryptocurrency, digital asset, and tokenisation projects.

These jurisdictions are recognised for their combination of common law familiarity, tax neutrality, and pragmatic, well-understood regulatory frameworks – qualities that appeal to market participants looking to balance innovation with regulatory clarity and investor protection.

In this article, partners Alan Wong (who leads Ogier's Technology and Web3 team in Asia) and Dennis Li discuss key trends in the APAC region from the mainstream adoption of digital assets to trends in restructuring and insolvency. Extracts from this article first appeared in Asian Legal Business in November 2025.

Cayman Islands

The Cayman Islands has developed a mature regulatory environment for virtual asset businesses and funds. The Cayman VASP Act has been in force for several years and the recent amendments provide market participants with additional certainty on which activities are regulated and clarity in the registration and licensing process.

Cayman’s high standards in anti-money laundering (AML) and countering the financing of terrorism (CFT) – along with the Cayman AML Regulations – mean that businesses operating in the virtual asset space benefit from clear expectations and a depth of locally based expertise, including lawyers, accountants, AML officers, and operational specialists.

While the regulatory requirements are robust, they have not deterred leading market participants from seeking registration and launching innovative projects. Indeed, there is a marked trend for both regulated and unregulated entities to voluntarily adopt AML / CFT policies aligned to Cayman standards as a matter of best practice, further enhancing the jurisdiction’s reputation for regulatory credibility.

Cayman also remains the world's leading offshore fund domicile, with an established infrastructure for launching and administering crypto funds. Importantly, the Cayman Islands Monetary Authority (CIMA) does not impose specific restrictions on the investment scope of a Cayman fund, allowing managers to retain broad discretion over the types and classes of crypto assets held by their fund – unlike certain jurisdictions (including some developed jurisdictions in Asia) where regulatory authorities require granular reporting on strategy and underlying exposure. This flexibility makes Cayman extremely appealing to managers and investors seeking autonomy in their investment strategies.

British Virgin Islands

The BVI's own regulatory regime for virtual asset service providers, the Virtual Assets Service Providers Act, 2022 (BVI VASP Act), came into force in February 2023 and is administered by the BVI Financial Services Commission (BVI FSC). It is designed to regulate activities involving custody or control over virtual assets that belong to others such as exchange services, wallet hosting or transfers, as well as the operation of exchanges and custody services. Crucially, unlike many other jurisdictions, the issuance by a BVI entity of a virtual asset – such as a token – is not, in itself, a regulated activity under the BVI VASP Act unless additional regulated services are provided. This flexibility has helped BVI become a preferred jurisdiction for incorporating blockchain projects seeking efficient token issuances. This includes stablecoin issuances, which we are seeing as a trend among Asian clients. Many global projects base their issuing entities in BVI to benefit from the regime’s agility. Ogier recently assisted a top stablecoin issuer in relocating to the BVI from an onshore jurisdiction.

The BVI also offers a regulatory sandbox regime, providing fintech ventures with a controlled environment to innovate and trial new products and services. The sandbox has become popular with clients such as those developing robo-advisory platforms and insurtech solutions, allowing them to access regulatory support before scaling internationally.

Regulatory developments and trends to watch

Both Cayman and BVI are continually enhancing their digital asset frameworks, responding to client demand and international best practice. In Cayman, a recent public consultation was launched to consider amendments to the Mutual Funds Act and the Private Funds Act to formalise regulation of tokenised funds. These proposals are intended to provide regulatory clarity while ensuring that CIMA has sufficient powers to effectively supervise such funds. Market participants have provided feedback, hoping that the amendments will accommodate innovative tokenised fund launches while preserving a risk-based regulatory approach. These legislative changes are currently under consideration and represent an important area to monitor going forward.

Choosing the right jurisdiction: How Ogier can help

At Ogier, our focus is always on helping clients balance their commercial objectives with regulatory requirements, providing guidance on structuring and domicile selection that best fits their business needs and the evolving regulatory landscape. In addition to the Cayman Islands and BVI, Ogier advises clients on Jersey, Guernsey, Irish and Luxembourg laws, should they wish to explore those jurisdictions for digital asset or fintech projects. For more information, contact a member of our team via their details below.

About Ogier

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice