Future bright for crypto says Jersey Finance, despite HSBC doubts

Tuesday 02 December 2014

Following HSBC severing links with the firm behind the world’s first regulated Bitcoin investment fund, Jersey Finance believes the Island still has a bright future for “fintech” and crypto-currencies.

When Global Advisers launched the fund here in July it was trumpeted as a big success for the Island, but five months on HSBC have pulled the plug, prompting the people behind the operation to find another banking provider.

Global Advisers have told the BBC that the bank were worried about a “money laundering risk” and that while their work with the fund continues, HSBC's move threatens Jersey’s plans to be a global centre for digital currencies.

The fund had been certified by the Jersey Financial Services Commission, and Assistant Chief Minister Philip Ozouf had said when it was launched that Jersey was “pleased to be paving the way” and that the sector held significant opportunities.

Jersey Finance – the promotional/marketing body for the finance industry – say that while they could not comment on the specific case involving GA and HSBC, they have faith that there is a future for “fintech” and crypto-currencies in Jersey.

Chief executive Geoff Cook said: “Whilst Jersey Finance cannot comment on specific commercial cases, we remain fully supportive of the development of an appropriately regulated cryptocurrency sector in Jersey.

“The digital space is a relatively new focus for the investment arena, but the launch in Jersey of the world’s first ever Bitcoin fund reflects our position as both a leading hedge fund jurisdiction and a pioneering centre for the rapidly evolving world of fintech.

“As a jurisdiction we are fully supportive of crypto currency development in a well regulated environment and proud to have hosted the launch of the world's first regulated Bitcoin fund.”