This will require the following:

• If the VASP was previously registered as a Virtual Currency Exchange Business, it will need to complete the registration form available on the Commisson's website. The application will be treated as a notification. There is a transition period running until 30 June 2023.
• If the VASP has previously notified the Commission to operate as a Virtual Currency Exchange business benefitting from the “turnover” exemption (as contained within the Proceeds of Crime (Supervisory Bodies) (Virtual Currency Exchange Business) (Exemption) (Jersey) Order 2016, it will need to complete the registration form available on the Commission's website. The application will be treated as a new application. There is a transition period running until 30 June 2023. 
• If the VASP is registered under the Financial Services (Jersey) Law 1998 to conduct financial services business, it will need to complete the registration form in relation to its existing virtual asset service provider activity. The Commission will treat the application as a notification. There is a transition period running until 30 June 2023. 
• If the VASP is a new business (which began operating after 30 January 2023), it must register with the Commission before it begins conducting business. The Commission will treat the application as a new application.

AML Service Providers cannot complete an application on behalf of a VASP, the VASP must complete the application form.

Amendment No. 6 has introduced the following definitions:

“Virtual Asset” means a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes.

“Virtual Asset Service Provider” includes a natural or legal person or arrangement that carries on the business of conducting one or more of the following activities or operations to, for or on behalf of another natural or legal person or arrangement:

(a) Exchange between virtual assets and fiat currencies,

(b) Exchange between one or more forms of virtual assets,

(c) Transfer  of virtual assets,

(d) Safekeeping or administration of virtual assets or instruments enabling control over virtual assets,

(e) Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.

An existing business (operating prior to 30 January 2023) conducting virtual asset service provider activity in Jersey will need to register with the Commission to continue conducting business. This will require the following:

• If the VASP was previously registered as a Virtual Currency Exchange Business, it will need to complete the registration form available on the Commission's website. The application will be treated as a notification. There is a transition period running until 30 June 2023.
• If the VASP has previously notified the Commission to operate as a Virtual Currency Exchange business benefitting from the “turnover” exemption (as contained within the Proceeds of Crime (Supervisory Bodies) (Virtual Currency Exchange Business) (Exemption) (Jersey) Order 2016, it will need to complete the registration form available on the Commission's website. The application will be treated as a new application. There is a transition period running until 30 June 2023. 
• If the VASP is registered under the Financial Services (Jersey) Law 1998 to conduct financial services business, it will need to complete the registration form in relation to its existing virtual asset service provider activity. The application will be treated as a notification. There is a transition period running until 30 June 2023. 
• If the VASP is a new business (which began operating after 30 January 2023), it must register with the Commission before it begins conducting business. The application will be treated as a new application.

Note, AML Service Providers cannot complete an application on behalf of a VASP, the VASP must complete the application form.

It added that although it depends on the precise nature of the activity, in most cases, its framework to date is limited to a ‘Schedule 2’ notification relating to virtual currency exchanges which capture platforms which have an element of fiat currency.

The JFSC said that the ICO guidance aims to create a transparent process for ICOs to obtain consent from it to issue tokens and raise capital in Jersey.

The guidance also sets safeguards that token issuers must put in place to protect against scams and ensure money laundering checks are done.

However, the JFSC stressed that while it does not regulate ICOs or the companies that issue them, under this framework, it does require them to satisfy minimum standards.

ICO issuers are also required to appoint a regulated trust and company service provider to administer the company.

The main elements covered by the guidance note are:

• Classifications of ICOs in Jersey (ie security v non-security tokens).
• General requirements for all ICO issuers, including being incorporated in Jersey, audit requirements or receiving consent before undertaking any activity.
• JFSC requirements on ICO issuers in Jersey, which includes sound business practice policy and AML/CFT requirements, risk management procedures, marketing materials, ongoing reporting requirements.

In developing the guidance note, the JFSC consulted with Government of Jersey and industry.

Mike Jones, Director of Policy commented:

"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."

The guidance note follows in the wake of several high-profile crypto ventures launching from Jersey, including the signature of a memorandum of understanding between Binance and Digital Jersey, which acts as a central point of contact for anyone looking to establish a digital business on the island.