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Jersey issues statement on Cryptocurrencies

Digital Jersey, working closely with other organizations including the Jersey Financial Services Commission, released a statement investigating the risks and opportunities around cryptocurrency in Jersey. It plans to hold a second public workshop on Cryptocurrencies in Autumn 2014. Both Jon and myself worked alongside Digital Jersey, helping them with their research into this subject and are delighted that Jersey has made the following stances:-

  • Generally speaking, creation of cryptocurrencies (through mining) is not illegal
  • Generally speaking, ownership of cryptocurrencies by an individual (rather than as part of a business) is not illegal
  • Whether different uses of cryptocurrencies are legal or illegal will depend on the use in question, as with use and misuse of fiat currencies (involvement in drug-trafficking or money-laundering, for example, will lead to prosecution)
  • Similarly, whether or not use of cryptocurrencies constitutes regulated activity will depend on the activity in question (a person carrying on the business of a bureau de change or engaging in money transmission services, for example, will be conducting regulated activity)
  • The Jersey Financial Services Commission regulates financial services business – if, for example, the owner of a Jersey coffee shop decided to accept cryptocurrencies in exchange for coffee this would not be regulated financial services business
  • Any business proposal will need to address a range of regulatory issues, including the need to hold a business licence issued by the Population Office
  • Any business or individual receiving an income from any activity will need to consider the tax implications of such activity, such as obligations arising under income tax law and goods and services tax (GST) law

We’ve seen a number of the industry’s news outfits pick up on this statement, most importantly BitLegal.io who has become the best place to see a country-by-country overview of how Cryptocurrencies are treated.

Robbie Andrews

Founder of Bit.Coin.Je | Technical Director at The Observatory (beobserved.com) | TechTriber (techtribes.je)

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