Jersey

Important Aspects	Details about Jersey
Specific rules for asset issuance	Jersey requires entities wishing to raise capital through digital asset issuance to obtain consent from the Jersey Financial Services Commission (JFSC) under the Control of Borrowing (Jersey) Order 1958 (COBO). The JFSC places conditions on these consents, such as the requirement to appoint a Jersey-licensed trust company business (TCB). Additionally, the JFSC introduced specific guidance for Initial Coin Offerings (ICOs) in 2018, which remains relevant.
Clarity over resale of digital assets	Jersey provides clarity over the resale of digital assets through its approach to virtual asset services. Registered VASPs (Virtual Asset Service Providers) offering exchange and transfer services for digital assets are required to register with the JFSC and follow AML/CFT/CPF regulations. Conditions apply to ensure lawful exchange and transfer activities.
Clarity over trading restrictions	Trading of digital assets in Jersey is subject to AML/CFT/CPF regulations. The JFSC requires VASPs to register and adhere to regulations designed to monitor trading activities, with a focus on limiting exposure to unregistered VASPs.
Clarity about custody requirements	Custody of digital assets by VASPs is regulated under Jersey's financial services framework. The JFSC requires VASPs providing custody services to comply with AML/CFT/CPF regulations and maintain secure management of virtual assets. Requirements include client identification, transaction monitoring, and detailed record-keeping for digital asset custody activities.
Dispute resolution for digital assets	Dispute resolution in Jersey for digital assets involves applying standard contract law principles. Digital assets are treated similarly to other forms of property under Jersey law, allowing for property disputes to be resolved through Jersey's legal system. However, there is consideration for reform to accommodate the nuances of digital assets, with the potential introduction of new property rights under Jersey law.
Restrictions on promotion of digital assets	The promotion of digital assets in Jersey requires compliance with JFSC guidelines. Misleading or deceptive promotions are strictly prohibited to protect consumers and investors.
Process for filing issuance of digital assets	To issue digital assets, entities must apply for COBO consent from the JFSC. The process involves submitting detailed information about the entity, the asset issuance, and compliance with conditions such as appointing a Jersey-licensed TCB. The JFSC may impose additional conditions based on the nature of the issuance, including requirements for consumer protection and AML/CFT/CPF compliance.
Key takeaways for VASP (dealers, ATS, transfer agents)	1. Registration with the JFSC is mandatory. 2. AML/CFT/CPF compliance is a priority, with strict regulations on customer identification, transaction monitoring, and risk management. 3. Prohibited activities include engaging with unregistered VASPs, privacy coins, mixers, and tumblers. 4. Increased supervision and ongoing regulatory developments indicate a need for VASPs to stay informed of changes.
Key takeaways for digital asset issuers	1. Consent from the JFSC (COBO) is required for asset issuance. 2. Issuers must appoint a Jersey-licensed TCB and comply with conditions such as appointing a TCB's principal person to a management function. 3. Transparent and lawful promotion is essential to avoid misleading investors. 4. Ongoing compliance with AML/CFT/CPF regulations is crucial for lawful issuance and trading.