Fund Recognition / Registration FAQs · 3/3

When choosing between a BVI and Cayman fund, compare open- or closed-ended status, investor base, redemption rights, service providers and target sales markets rather than relying on cost or approval-speed rankings. A BVI incubator fund may have no more than 20 eligible investors, a net asset cap of 2,000 US dollars, and a minimum initial investment of 2 US dollars per investor. The Cayman option requires separate local verification.

Risk warning:Choosing the wrong fund category may restrict fundraising or ongoing operations.

A BVI company may serve as a digital asset fund or a service entity for one, but fund functions must be assessed separately from management, advisory and custody functions. Open-ended and closed-ended funds follow different recognition or registration routes. Where services involve exchanging virtual assets for clients, transferring them, or controlling assets, VASP requirements must also be assessed independently; fund status does not cover every service.

Risk warning:Treating fund recognition as a substitute for custody or management licences may lead to operating beyond the authorised scope.