Jersey has recalibrated its approach to supervising Virtual Asset Service Providers (VASPs) by incorporating them into its stringent anti-money laundering, countering the financing of terrorism, and countering proliferation financing (AML/CFT/CPF) rules. A move designed to establish regulatory harmony with the Financial Action Task Force Standards, enhancing Jersey's reputation for robust financial oversight.
VASPs, for those new to the term, encapsulate a range of individuals and entities that conduct various operations involving virtual assets on behalf of their clients. This includes, but is not limited to:
Virtual assets and fiat currency exchanges.
Transfers of virtual assets between accounts or addresses.
Safekeeping or administration of virtual assets.
Provision of financial services related to an issuer's offer and/or sale of a virtual asset.
The Proceeds of Crime legislation in Jersey has undergone alterations earlier this year to accommodate these changes. The introduction of these modifications led to a six-month transitional period designed to allow existing VASPs to adapt to the new regulatory environment. The transitional period culminates on June 30, 2023.
In this transitional period, certain actions are necessitated, such as:
Registering with the Jersey Financial Services Commission (JFSC) for AML/CFT/CPF supervisory purposes.
Filing applications by Virtual Currency Exchange Businesses in response to revoking the 'turnover' exemption.
Updating notifications for regulated entities engaging in VASP activities.
Furthermore, any new VASP-related businesses that have commenced operations after January 30, 2023, must ensure registration with the JFSC prior to launching any business activities in Jersey.
To ensure the highest standards of compliance, the focus is on authorizing vehicles aimed at professional, sophisticated, or institutional investors. Through this, the transition reflects Jersey's commitment to creating a more regulated virtual assets market, aligning with global practices. DISCLAIMER: The information provided is not legal, tax, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be AI-generated. The information provided is for general educational purposes only and is not investment advice. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information. A professional should review any action based on the information discussed. The author is not liable for any loss from acting on the information discussed.
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