Private Funds (Amendment) Bill, 2026 (LG6, S2)

This Bill amends the Private Funds Act to establish a regulatory framework for tokenised private funds, where investment interests are represented by digital investment tokens, and to enhance investor protection and regulatory oversight. 

Key Provisions: 

1. Adds new definitions including “digital investment token” and updates existing definitions to ensure tokenised structures are clearly captured under the Act.
2. Requires tokenised private funds to securely maintain detailed records of token issuance and ownership, restrict token transfers to operator approval and disclose token-specific risks and mitigation measures in offering documents. 
3. Empowers the Authority to supervise tokenised private funds, impose restrictions on token characteristics, require periodic reporting and conduct inspections of underlying technology and token transactions to protect investor interests. 

Supplement No.2 of Legislation Gazette 06 published on 4 February 2026 

Published: 4 February 2026

Publication Type: Legislation Gazette Supplement

Last updated:

Category: 2026, Cayman Islands Government, Legislation Gazette Supplement