The regulation, which was developed in collaboration with Digital Jersey, the States of Jersey, the JFSC and Jersey Finance as part of Jersey’s Digital Policy Framework, builds on the island’s proposition as a leading innovator in fintech and specifically virtual currencies. Currently few countries have introduced regulation in this area.
This regulatory regime will give Jersey more control over the way individuals and businesses exchange virtual and physical currencies, mitigating the potential risk of financial crimes such as money laundering and terrorist financing. The policy also creates a suitable business environment for virtual currencies that will encourage confidence in Jersey as a jurisdiction of digital excellence. This will support innovation, new jobs and the growth of Jersey’s digital and finance sectors.
The regulation comes into effect on Monday 26th September.
Tony Moretta, CEO of Digital Jersey, commented:
“As we continue to make steps towards realising Jersey’s digital and fintech potential, it’s extremely important for the island to introduce the right regulatory regime to encourage confidence in our jurisdiction. The new regulation for virtual currencies shows the strength of the relationship between Government, digital and financial industries, combining our individual expertise to create an innovative framework that will allow our economy to flourish.”
“I am delighted that we are now at the stage of implementing this policy and by doing so we are putting Jersey on the map as one of the first jurisdictions to establish a progressive regulatory regime for virtual currency. We have worked hard with industry and the regulator to create the right environment for Jersey businesses to thrive in the virtual currency space. I look forward to seeing these opportunities being developed and to Jersey expanding its reputation for high standards of regulation into a new area of expertise.”
Find out more about the regulation of virtual currency here.