Jersey Financial Services Commission (JFSC) publishes updated guidance on Tokenisation of Real World Assets
The publication of new guidance by the Jersey Financial Services Commission (JFSC) this week represents an important step in enhancing Jersey’s reputation as a jurisdiction for tokenisation and in driving progress in the virtual assets space more widely, according to Suntera Global’s Head of Funds in Jersey.
The JFSC published its new guidance this week (28 August) in two tranches, focusing on:
The guidance clarifies the JFSC’s approach to tokenisation and its regulatory expectations in relation to the application of blockchain technology to real world assets. It follows on from previous guidance published by the JFSC in 2018.
Overall, the guidance aims to set out a regulatory framework that is both innovative and appropriate, recognising the distinct nature of virtual assets and the rapidly evolving tokenisation landscape. As well as acknowledging the benefits tokenisation can bring to the cross-border investment landscape, the guidance brings clarity to the application of tokenisation to products including funds, and sets out the requirements of issuers when submitting applications for tokenised solutions.
Ryan Taylor, Head of Funds – Jersey at Suntera Global, said:
“There’s no doubt that tokenisation and the application of blockchain technology can bring significant benefits to the investment fund landscape, including greater transparency and enhanced accessibility for investors, particularly in assets such as real estate. However, the regulatory environment needs to continue to evolve in line with this potential – and this latest guidance acknowledges that. It can play a significant step, both in enhancing Jersey’s reputation as a centre for high-quality virtual assets work, and in advancing thinking on virtual assets regulation more widely.
“Jersey has form in this area, having been home to a number of virtual currency and virtual assets vehicles over the past decade – but this latest guidance is a welcome milestone that balances Jersey’s forward-thinking approach with its reputation for combatting financial crime. It should send a reassuring message to investors and issuers in this space.”
For more information about this topic, please get in touch with Ryan using his details below.
Key Contact:
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Ryan Taylor
HEAD OF FUNDS, JERSEY
