In a landmark shift for private wealth management, the Cayman Islands has introduced two transformative legal advancements: the repeal of the rule against perpetuities for ordinary trusts, and enhanced regulation for virtual asset service providers. These updates position Cayman as a forward-looking, versatile jurisdiction for dynastic estate planning and digital-asset innovation.
Disapplication of the Rule Against Perpetuities
Effective 22 August 2024, the Perpetuities (Amendment) Act, 2024 abolished the 150-year time limit on ordinary trusts, allowing them potentially to exist indefinitely unless a specific perpetuity is stipulated.
- Settlor, trustee, enforcer, or a beneficiary of existing trusts can now appeal to the Grand Court to disapply the rule, provided it does not involve land-based interests in Cayman.
- Non-Cayman trusts of unlimited duration may migrate under Cayman law and retain their perpetual status.
This positions Cayman alongside top jurisdictions like Jersey and Guernsey, offering unparalleled flexibility for multi-generational legacy structures.
Phase 2 Virtual Asset Service Provider Regulation
On 1 April 2025, Phase Two of the Virtual Asset (Service Providers) Act (VASPs) took effect (see CIMA)
- Entities offering virtual asset custody or operating trading platforms must now be licensed by CIMA.
- Transitional arrangements required existing registrants to apply before29 June 2025
- New governance demands include at least three directors (one independent), high compliance standards, segregation of client/proprietary assets, and revised fee schedules & licensing protocols
This regulatory refinement signals Cayman’s dedication to robust digital finance oversight and risk mitigation.
Implications & Strategic Insight
- Families can now incorporate perpetual ordinary trusts alongside STAR trusts, using Cayman foundations or corporate vehicles to craft intergenerational, philanthropic, and succession plans.
- Institutions and family offices entering digital asset markets can leverage Cayman’s clarified regulatory backdrop, with licensing safeguards that enhance credibility and compliance.
How Navigate Can Help
Get in touch with our team at info@navigate.ky to learn more about setting up a virtual asset company in the Cayman Islands through our partner, Cayman Enterprise City. Our relocation team will guide you step by step on what you need to know to build a successful business in the Cayman Islands!