The introduction of a "regulatory sandbox" to enable
businesses that provide virtual currency exchange services
(Exchangers) to experiment and test new products
and applications in Jersey under light-touch regulation have been
welcomed by Ogier's IP, Tech and Digital team.
Changes to two key pieces of legislation that were approved
unanimously in June are now in force - the coupled effect of the
reforms and an exemption order means that amendments to the
Proceeds of Crime and the Proceeds of Crime (Supervisory Bodies)
laws establish a £150,000 turnover threshold for Exchangers
to develop and test innovative products, services, business models
and delivery mechanisms without having to fulfil all of the same
regulatory burdens of a bank or other regulated entity.
The changes make virtual currency exchange a supervised business
and require Exchangers to register with, and fall under the
supervision of, the Jersey Financial Services Commission
(JFSC). Once an Exchanger hits that
£150,000 annual turnover threshold, it will then be subject
to the usual supervision and fee regime.
Sara and Steven are part of Ogier's IP, Tech and Digital
team, which is spread across its Jersey, Guernsey, Cayman and
Luxembourg offices, working on Fintech, virtual currency,
intellectual property and all areas of new technology.
"With virtual currency transaction values and volumes ever
increasing globally, virtual currencies are breaking into the
mainstream. A balanced regulatory approach will encourage further
development of this Fintech here in Jersey," said Sara.
"That said, the technology is still developing, and
there's an enormous amount of work to do in developing and
testing new products, services, business models and delivery
Steven added: "These changes make Jersey a viable venue for
that work, which is great news for the tech, Fintech and financial
services sectors and may present as an opportunity for Jersey
compliance companies and trust companies."
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