JERSEY Law and Practice Contributed by: Christopher Griffin, Sophie Hancock, Tshogofatso Dhlamini, Rachael Barber, David Patterson and Mike Kushner, Carey Olsen
6.2 Regulation of Different Asset Classes The Jersey regulatory regime generally depends upon the type of activity/investment vehicle, rather than the asset class. However, the JFSC views involvement in digital assets such as cryptocurrencies as “sensitive activity” for the purposes of its Sound Business Practice Policy (SBPP) and therefore applies greater scrutiny when issuing regulatory con - sents in relation to vehicles that invest or deal in such assets. See 2.2 Regulatory Regime for further detail regarding the manner in which digi - tal asset businesses may need to be regulated and/or registered as a VASP under the Jersey POC SB Law. 6.3 Impact of the Emergence of Cryptocurrency Exchanges See 2.2 Regulatory Regime and 6.2 Regulation of Different Asset Classes . 6.4 Listing Standards There are generally no Jersey-specific require - ments regarding the investment exchanges/ associated listing standards that must be used by Jersey-based exchanges and trading plat - forms. However, where a consent is sought from the JFSC, they would generally expect any such exchanges to be based in reputable FATF juris - dictions. 6.5 Order Handling Rules See 3.3 Issues Relating to Best Execution of Customer Trades . The IB Code requires invest - ment businesses to treat their clients fairly and sets out the JFSC’s requirements regarding matters such as switching and churning, client order priority (including fair allocation), and best execution.
need to notify the JFSC of their intention to rely upon that exemption. 5.2 Regulation of Cross-Border Payments and Remittances See 2.2 Regulatory Regime and 5.1 Payment Processors’ Use of Payment Rails . If a pay - ment processor will carry out any of the following activities by way of business in or from within Jersey, it will generally require a money service business licence: • bureau de change; • providing cheque-cashing services; • transmitting or receiving funds by wire or other electronic means; and • engaging in money transmission services. The JFSC has published a Code of Practice for Money Service Business , which covers broadly similar principles to the IB Code, and requires compliance with the Jersey AML Regime. Please note that, as Jersey is not a member of the EU, the EU Payment Services Directive does not apply in Jersey. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms Jersey-based operators of investment platforms will generally be required to obtain an invest - ment business licence to deal in investments and operate an investment exchange (see 2.2 Regulatory Regime and 3. Robo-Advisers ) and will therefore need to comply with the relevant sections of the IB Code. There are no restric - tions upon the types of marketplaces and trad - ing platforms that may be used, provided that those requirements are met in each case.
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