The JFSC says the guidance note represents an  "innovative and balanced" approach to the treatment of this activity, enabling ICOs to be launched in Jersey with a number of controls in place to help reduce some of the risks associated with them. Whilst, under this framework, the JFSC does not regulate the ICOs or the companies that issue them, it does require the companies to satisfy certain minimum standards and to appoint a regulated Trust and Company Service Provider to administer the company.

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 thereputation and best economic interests of the Island.”

Minister for External Relations, Senator Ian Gorst, added:

“Jersey has been at the forefront of developing a framework for cryptocurrency regulation for some time and this guidance note marks a further step in our journey. We have worked with the JFSC to articulate a balanced regime: on the one hand, Jersey’s treatment of exchanges and ICOs is permissive and promotes innovation and new enterprise. On the other hand, safeguards are in place to protect investors from harm and to mitigate some of the financial crime risks associated with cryptocurrencies. As things develop in this rapidly-moving industry we will monitor best practice and continue to update our regime in the future.”

The guidance has been welcomed by law firm Carey Olsen. Partner Chris Griffin commented: "The guidance note sets out a clear and practical path, focusing on consumer protection and anti-money laundering, while recognising the fact that ICO promoters want to use Jersey because of the island's reputation as a well-regulated and reputable jurisdiction.

"Ultimately, the guidance note strikes a well-considered balance between establishing a crypto-friendly approach and the need to have appropriate measures in place to ensure proper investor disclosure and good governance."