Initial coin offerings (ICOs) will be allowed to be launched in Jersey, according to a guidance note issued by The Jersey Financial Services Commission (JFSC).
The guidance note addressed the issue of ICOs activity, and was developed in consultation with the Jersey Government and the financial services industry.
It states that ICOs can be launched with a number of controls in place to help reduce some of the risks associated with them, representing an innovative and balanced approach to the treatment of this activity.
Under this framework, the JFSC does not regulate the ICOs or the companies that issue them, but it does require the companies to comply with certain minimum standards and to appoint a regulated trust and company service provider to administer the company.
Mike Jones, director of policy at the JFSC, said: “This represents an innovative and pragmatic approach to the treatment of ICOs in Jersey. It illustrates our commitment to fintech developments more generally, but at the same time reflecting our guiding principles of consumer protection, countering financial crime and protecting the reputation and best economic interests of the Island.”
Geoff Cook, chief executive of promotional body Jersey Finance, added: “This innovative and balanced approach to the treatment of ICO activity further demonstrates Jersey’s reputation as one of the most forward-thinking and coordinated jurisdictions for cryptocurrencies.
“As digital innovation forms a key part of our jurisdictional strategy, we will continue to work with Government, the regulator and industry, as well as developers, experts and innovators, in order to ensure Jersey is ready to play a vital role in such a rapidly evolving space.”
ICOs are a digital way of raising funds from the public using distributed ledger technology. The guidance note follows on from the risk warning for potential ICOs investors issued by the JFSC in 2017.
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