Jersey Supports Regulated Initial Coin Offerings
by Jason Gorringe, Lowtax.net, London
14 December, 2017
Jersey's Government has stated its position concerning "initial coin offerings" (ICOs), a digital way of raising funds from the public by using distributed ledger or blockchain technology.
Participants in ICOs are normally issued with digital tokens (coins) linked to a specific business or project.
Jersey's Government says it supports the view that ICOs conducted through Jersey legal entities should only be open to companies and legal entities incorporated or registered and administered through the island's regulated financial services sector.
The island's Government says that this approach to ICOs, by applying regulatory requirements (including anti-money laundering and countering the financing of terrorism requirements) to regulated institutions, strikes the appropriate balance between encouraging innovation in financial technology (Fintech) and managing the risk of emerging technology.
The Government says implementation of the policy will be achieved by applying current legislation and the Jersey Financial Services Commission's Sound Business Practice Policy, which enables the Companies Registry to either add conditions to incorporation or registration of Jersey companies and legal entities, or to simply not accept an application.
The Government also says it will continue to examine the developments of other countries regulatory regimes in this area to ensure Jersey is best placed to take advantage of Fintech opportunities.
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