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The introduction of a regulatory 'sandbox' to enable businesses that provide virtual currency exchange services to experiment and test new products and applications under light-touch regulation have been welcomed by Ogier's IP, Tech and Digital team.
Changes to two key pieces of legislation that were unanimously approved in June are now in force.
It means that amendments to the Proceeds of Crime laws establishes a £150,000 turnover threshold for exchangers to develop and test innovative products, services, business models and delivery mechanisms without having to fulfil all of the same regulatory burdens of a bank or other regulated entity.
The changes make the virtual currency exchanges a supervised business and requires the exchangers to register with and fall under the supervision of the Jersey Financial Services Commission. Once an exchanger hits the £150,000 annual turnover threshold, it will then be subject to the usual supervision and fee regime.
Ogier Partner Sara Johns said: "With virtual currency transaction values and volumes ever increasing globally, virtual currencies are breaking into the mainstream. A balanced regulatory approach will encourage further development of this Fintech here in Jersey.
"That said, the technology is still developing and there is an enormous amount of work to do in developing and testing new products."
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