Asset tokenisation and initial coin/token offerings guidance
We have published new guidance in response to the growing trend of asset tokenisation. We recognise the innovative potential of blockchain technology and the benefits that tokenisation can facilitate for the finance industry, such as liquidity, accessibility and transparency.
We monitor global regulatory developments in this space and, in response to the potential benefits and growing demand, this guidance seeks to promote Jersey’s competitiveness as an international finance centre and support industry by clarifying our regulatory expectations when it comes to this technology.
The guidance is principles-based, allowing its application to a wide array of tokenised products, including equities, units in a fund, and bonds. We take a substance-over-form approach, requiring issuers of tokenised assets to consider the nature of the underlying asset, product and activities when submitting their application.
We have committed to continue to evolve this guidance through collaboration and engagement with industry, and we thank those that have provided input into its development.
The guidance can be found here:
Further to the above, we have also published updated initial coin/token offerings (IC/TO) guidance. This guidance refreshes our original guidance published in July 2018 and reflects updated terminology. Together with the tokenisation of real world assets guidance, it achieves a set of regulatory guidance that more effectively responds to the distinct nature and use of these assets.
The guidance can be found here:
The JFSC’s Chief Risk Officer Chris Gedrych said: “This new guidance underscores the JFSC’s commitment to innovation and support for Jersey as a competitive international finance centre. We will continue to respond proactively and collaboratively to developments in the tokenisation space so that Jersey can continue to benefit from this innovation, while also meeting international standards in fighting financial crime.”