Virtual Asset Service Providers (VASPs)
Virtual Currency Exchange Businesses have been required to register with the JFSC since 2016 and subject to anti-money laundering/countering the financing of terrorism/countering proliferation financing (AML/CFT/CPF) legislation.
In order to ensure that all virtual asset activities are subject to the same AML/CFT/CPF legislation requirements, the Proceeds of Crime (Amendment No. 6) (Jersey) Order 2022 (Amendment No. 6) has aligned Jersey’s Virtual Asset and Virtual Asset Service Providers regime to the Financial Action Task Force Standards (The FATF Recommendations (fatf-gafi.org)).
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.
What do you need to do?
If you are an existing business (operating prior to 30 January 2023) conducting virtual asset service provider activity in Jersey, you need to register with the JFSC to continue conducting business. This will require the following:
- If you were previously registered as a Virtual Currency Exchange Business, you will need to complete the registration form available on our website. We will treat this application as a notification. There is a transition period running until 30 June 2023.
- If you have previously notified us 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, you will need to complete the registration form available on our website. We will treat this application as a new application. There is a transition period running until 30 June 2023.
- If you are registered under the Financial Services (Jersey) Law 1998 to conduct financial services business, you will need to complete the registration form in relation to your existing virtual asset service provider activity. We will treat this application as a notification. There is a transition period running until 30 June 2023.
- If you are a new business (who began operating after 30 January 2023), you must register with the JFSC before you begin conducting business. We will treat this application as a new application.
Please note AML Service Providers cannot complete an application on behalf of a VASP, the VASP must complete the application form
Schedule 2 Supervisory Bodies Law Registration form