Jersey Regulator Warns On Unregulated Initial Coin Offerings
by Jason Gorringe, Lowtax.net, London
01 February, 2018
Jersey's financial services regulator, the Jersey Financial Services Commission, says recent articles claiming initial coin offerings (ICOs) are regulated by the Commission are "misleading."
The Commission says that, as is the case worldwide, an ICO issued from a Jersey business is unlikely to be regulated by the Commission for the purposes of financial standing and conduct. Further, the Commission says that it has so far only granted consent to one company (ARC Fiduciary Ltd) to issue an ICO.
The Commission says that, just like any other Jersey company, a company issuing digital coins or tokens from Jersey would need to obtain a consent from the Commission in order to set up the company. The grounds on which the Commission would determine whether or not to grant their consent are limited, and focus primarily on whether potential investors have been provided with sufficient information about the company and the risks of investing in it. The Commission says it does not consider the financial standing of, or conduct risks associated with, such ICOs or the digital coins or tokens issued.
This statement from the Commission is the latest risk warning it has issued on ICOs, and follows a November 2017 warning in which it explained that ICOs, wherever they are issued from, tend to be unregulated and that the public should be aware of the risks of "investing" in them.
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