Activity in the fintech sector continues to be strong. There is ongoing interest in establishing vehicles in both the Cayman Islands and the BVI. While the Cayman Islands has established a virtual asset service provider regulatory framework, this has been welcomed by industry participants looking for established regulations to frame their business under. In the BVI, there is currently no dedicated virtual asset regulatory regime and this continues to be a popular jurisdiction for virtual asset connected activity.
However, we expect that a virtual asset regulatory regime will be introduced in the BVI during 2022 so all entities operating in the BVI should keep these developments under review.
We continue to see investment funds being established with a crypto-related investment focus and expect that this will continue through 2022, whether as a standalone investment strategy or included as part of a diverse pool of assets.
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