Fintech and ICO update in response to the JFSC warning on Initial Coin Offerings
01 December 2017
The JFSC published a press statement yesterday, outlining the nature of ICOs and recognising the innovative potential of distributed ledger/blockchain and Fintech more generally. The JFSC is supportive of efforts to innovate in this sector in Jersey.
Their press statement does also aim to highlight the risks of ICOs for retail investors and summarises their potential areas of concern in relation to ICOs for retail investors.
The JFSC also comment on the regulatory treatment of ICOs in Jersey, which is helpful, although their comments probably only confirm what was already suspected, that there is no 'one-size-fits-all' analysis of how ICOs would be regulated in Jersey. In some cases, depending on the form of offer, the ICO could therefore be regulated or require consent from the JFSC, but in other cases this may not be necessary. In either case, this will require an understanding of the regulatory framework in Jersey before proceeding with the ICO.
You can find a copy of the JFSC's press statement here.