Back to Analyses

Guernsey

Retail_Trading_Status

Allowed-Regulated Unknown
Edit

Status Changed

Previous status: Gray-Zone

The primary difference between the two analyses lies in the assessed "Current Status" of retail cryptocurrency trading in Guernsey and the nuances of the regulatory environment influencing this status. The "Previous Analysis" designated the status as "Gray-Zone," while the "New Analysis" classifies it as "Allowed-Regulated." This shift in status and the corresponding narrative is justified by several factors, primarily driven by more recent information and a slightly different emphasis in the "New Analysis": 1. Evolution of Regulatory Stance and Clarification: The "New Analysis" incorporates information dated up to June 2025, including GFSC public statements from that month. These newer statements indicate a potential evolution in the GFSC's approach, particularly regarding indirect retail investment in cryptocurrencies through regulated fund structures. The "Previous Analysis" relied on information largely from 2023 and earlier, which highlighted a "blanket ban on the licensing of any VASPs intending to do business with retail customers." The "New Analysis" acknowledges this historical restrictiveness but points to a "more nuanced approach" where the GFSC is "open to well-managed funds investing in cryptocurrencies, even for retail investors, provided specific expectations are met." This suggests a pathway, albeit regulated and indirect, for retail participation that moves away from a purely prohibitive stance for licensed entities. 2. Emphasis on Individual Exemption: Both analyses correctly identify that individuals buying, selling, or holding cryptocurrencies for their own benefit are exempt from VASP licensing under the LCF Law, 2022. However, the "New Analysis" gives more prominence to this explicit permission, citing GFSC FAQs directly: "No, buying and selling for yourself is exempt." This direct confirmation of legality for individual activity, coupled with the regulated framework for VASPs, supports the "Allowed-Regulated" status. The "Previous Analysis" also noted this individual exemption but framed the overall situation as a "Gray-Zone" because Guernsey-based licensed VASPs were effectively barred from directly serving retail clients, pushing them towards potentially unregulated offshore platforms or intermediaries. 3. Interpretation of "Regulated": The "New Analysis" interprets "Allowed-Regulated" to mean that while individuals are allowed to trade, the ecosystem (VASPs, platforms if operating in/from Guernsey) is subject to regulation, including AML/CFT and investor protection measures. The focus is on the legality of individual action within a regulated environment for service providers. The "Previous Analysis" focused more on the *restrictions* faced by retail individuals in accessing *Guernsey-licensed* services, leading to the "Gray-Zone" conclusion. The difficulty for retail to engage with local, regulated VASPs was the dominant factor. 4. New Information on CARF and Fund Structures: The "New Analysis" includes information about Guernsey's adoption of the Crypto Asset Reporting Framework (CARF) for tax transparency and the June 2025 GFSC statements on crypto funds. These developments signal an increasing integration of crypto-assets within the regulatory and fiscal framework, moving beyond just warnings and VASP licensing restrictions. The potential for retail access via regulated funds, even with caveats like professional advice, is a significant shift from the stricter VASP-to-retail prohibition highlighted previously. In essence, the "Previous Analysis" correctly identified the significant hurdles for direct retail engagement with Guernsey-licensed VASPs, leading to its "Gray-Zone" assessment. The "New Analysis," benefiting from more recent clarifications and policy nuances from the GFSC (especially the June 2025 statements regarding funds), shifts the focus. It acknowledges the individual's right to trade and views the VASP regulations and the evolving stance on indirect retail access through funds as components of an "Allowed-Regulated" environment. The core activity for individuals is permitted, and the entities they might interact with (especially if Guernsey-based) are, or would be, subject to a defined regulatory regime, even if direct VASP-to-retail services remain highly restricted. The newer analysis suggests a slight opening or clarification in how retail investors might gain exposure within a regulated context, which tempers the "Gray-Zone" perception.

Analysis ID
#554
Version
Latest
Created
2025-06-26 13:26
Workflow Stage
Live

Executive Summary

Guernsey operates a regulatory framework for retail cryptocurrency trading that is permissive but highly cautious. While direct retail exchange trading is not explicitly banned, the emphasis is on ensuring retail investors gain exposure primarily through regulated collective investment schemes (funds) or licensed service providers. The GFSC, as the primary regulatory authority, supports innovation in the crypto space, particularly concerning fund structures and fund tokenisation, provided there are robust governance, risk controls, and comprehensive investor protection measures in place. Virtual Asset Service Providers (VASPs) face significant regulatory scrutiny and licensing requirements, particularly concerning Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, and are generally prohibited from directly targeting retail clients. There is no standalone retail crypto trading framework; instead, cryptocurrencies are treated as virtual assets within the existing investment fund and securities regulatory architecture.

Key Pillars

  • Permissive but Cautious Regulatory Approach: The GFSC supports innovation and permits collective investment schemes to offer indirect exposure to cryptocurrencies. This is contingent on investors being thoroughly informed of the associated risks and possessing the financial capacity to absorb potential losses.

  • Focus on Fund Structures: Guernsey has positioned itself as a prominent jurisdiction for regulated crypto funds, including Bitcoin Exchange-Traded Funds (ETFs) and private investment funds leveraging blockchain technology. The GFSC actively encourages fund tokenisation under stringent governance and risk control protocols, necessitating the use of private, permissioned blockchains for fund registers.

  • Virtual Asset Service Providers (VASPs): The GFSC maintains a cautious stance towards VASPs, especially those that offer retail exchange services. These entities are subject to licensing and rigorous regulatory oversight to ensure robust investor protection and strict adherence to AML/KYC compliance.

  • No Explicit Retail Exchange Ban, but Controlled Environment: While a direct ban on retail crypto trading by exchanges is not in place, the regulatory focus ensures that retail investors predominantly access crypto assets through regulated funds or licensed service providers. Mandated detailed risk warnings and investor protections are in place for non-professional investors. Notably, the GFSC has generally imposed a blanket ban on licensing VASPs intending to do business directly with retail customers, though dealings through intermediaries might be considered.

  • KYC/AML and Licensing: Any entities dealing with crypto assets are obligated to comply with comprehensive AML/KYC regulations. Furthermore, they must secure appropriate licenses if they conduct controlled investment business under the relevant laws.

  • No Separate Retail Crypto Trading Framework: Guernsey integrates cryptocurrencies as virtual assets within its existing investment fund and securities regulatory framework, rather than establishing a distinct retail crypto trading regime.

Landmark Laws

The Protection of Investors (Bailiwick of Guernsey) Law, 2020 (POI Law)
- Authority: GFSC
- Date: November 1, 2021
- Summary: This law, which became effective on November 1, 2021, repealed and replaced its 1987 predecessor. It mandates that any entity conducting "controlled investment business" in or from Guernsey must hold a license from the GFSC. "Controlled investment business" encompasses engaging in "restricted activities" (such as promotion, dealing, management, administration, advising, custody, and operating an investment exchange) in connection with "controlled investments" (which include collective investment schemes, general securities, and derivatives) carried out by way of business.

The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (LCF Law)
- Authority: GFSC
- Date: July 1, 2023
- Summary: Coming into effect on July 1, 2023, this significant piece of legislation regulates and licenses Virtual Asset Service Providers (VASPs). VASPs are required to obtain a Part III VASP license under this law, unless specific exemptions apply. The LCF Law provides a broad definition of "virtual assets" and outlines various VASP activities, aligning Guernsey's regulatory landscape with international standards set by the Financial Action Task Force (FATF). It explicitly prohibits VASPs from directly targeting individual (retail) consumers.

The Anti-Money Laundering and Countering Financing of Terrorism (Bailiwick of Guernsey) Law, 2008 (AML/CFT Law)
- Authority: GFSC
- Date: 2008
- Summary: This law establishes the foundational requirements for preventing money laundering and terrorist financing across Guernsey's financial sector. VASPs are explicitly subject to this law, necessitating their compliance with stringent requirements, including customer due diligence, ongoing transaction monitoring, and the reporting of suspicious activities. The GFSC issued clarifying guidance on the application of this law to virtual asset activities in 2018.

Considerations

  • Asset Classification: Guernsey's legal system treats virtual assets as a form of "property" and they are not classified as securities under the existing regulatory framework. The GFSC employs a principles-based approach, evaluating each case individually to determine applicable regulatory requirements.

  • Taxation: Guernsey currently lacks specific tax legislation for cryptocurrencies. Generally, cryptocurrencies are treated akin to foreign currency for tax purposes. Occasional disposals by individuals are typically considered capital gains or losses and are generally not subject to taxation. Gains or losses realized in a business context are included in the business's accounts. Unrealized gains and losses from year-end revaluation of cryptocurrencies are typically not taxable or relievable. The activity of cryptocurrency mining, particularly on a small or irregular scale, is generally not considered a trading activity that would incur income tax. Guernsey, in line with international efforts for tax transparency, is committed to implementing the OECD's Crypto-Asset Reporting Framework (CARF), with the intention for initial exchanges of data to commence by 2027 (based on 2026 data).

Notes

  • The GFSC's approach to digital assets is continuously evolving. A statement issued in June 2025 indicated a more flexible stance towards certain digital assets, acknowledging the growing maturity of some cryptocurrencies like Bitcoin. This shift particularly applies to collective investment schemes, although the GFSC remains vigilant in ensuring appropriate investor protection and maintains caution regarding direct retail exchange services. Guernsey's commitment to supporting crypto innovation is further evidenced by its status as a leading jurisdiction for crypto funds, including the authorization of the world's first Tier 1 Bitcoin ETF in January 2022. Furthermore, under the LCF Law, VASPs are now required to publish annual information regarding the environmental impact of the consensus mechanisms of the virtual assets they handle, demonstrating Guernsey's consideration of broader implications of crypto activities.

Detailed Explanation

Guernsey’s regulatory stance on retail cryptocurrency trading is best described as "Allowed-Regulated," a nuanced position that reflects the jurisdiction's balance between fostering innovation and ensuring robust investor protection and financial stability. The overarching philosophy of the Guernsey Financial Services Commission (GFSC) is one of cautious permissiveness, particularly evident in its support for collective investment schemes providing indirect exposure to cryptocurrencies.A cornerstone of Guernsey’s regulatory environment for crypto is its focus on regulated fund structures. The island has actively cultivated its reputation as a leading jurisdiction for crypto funds, including the authorization of innovative products like Bitcoin ETFs. This approach allows a broader range of investors to participate in the crypto market, but crucially, it does so within a highly regulated framework where risks are assessed, disclosed, and managed. The GFSC encourages the tokenisation of funds, provided they adhere to strict governance and risk controls, often requiring the use of private, permissioned blockchains for maintaining fund registers.For Virtual Asset Service Providers (VASPs), the regulatory landscape is stringent. The GFSC maintains a highly cautious approach, especially concerning those services directly catering to retail clients. Under the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (LCF Law), which came into effect on July 1, 2023, VASPs are required to obtain a Part III VASP license to operate in or from Guernsey. This licensing regime is coupled with rigorous regulatory scrutiny, primarily aimed at ensuring investor protection and strict compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Indeed, the GFSC has generally implemented a ban on licensing VASPs whose business model involves directly targeting retail customers, although access through intermediaries may be considered. This policy reflects a deliberate effort to channel retail engagement with crypto assets through more controlled and professionally managed avenues.While there is no explicit ban on retail crypto trading in Guernsey, the regulatory framework is designed to create a controlled environment. Retail investors are encouraged, if not effectively directed, to access crypto assets through regulated funds or licensed service providers rather than engaging in direct, unsupervised exchange trading. Comprehensive risk warnings and investor protection measures are mandated for non-professional investors, underscoring the GFSC's commitment to safeguarding market participants.Guernsey's regulatory framework treats cryptocurrencies as "virtual assets" within its existing investment fund and securities laws, rather than creating a separate, bespoke retail crypto trading regime. This integration means that the well-established principles of financial regulation, including those related to licensing, conduct of business, and anti-financial crime measures, are applied to crypto activities. Entities dealing with virtual assets must comply with the Anti-Money Laundering and Countering Financing of Terrorism (Bailiwick of Guernsey) Law, 2008 (AML/CFT Law) and obtain appropriate licenses under laws such as the Protection of Investors (Bailiwick of Guernsey) Law, 2020 (POI Law), particularly if they conduct controlled investment business.Regarding taxation, Guernsey does not have specific crypto-centric tax legislation. Cryptocurrencies are broadly treated in a manner similar to foreign currencies. While occasional disposals by individuals are typically not subject to capital gains tax, any gains or losses realized in a business context are incorporated into financial accounts. Furthermore, Guernsey is actively participating in international efforts for tax transparency, endorsing and working towards the implementation of the OECD's Crypto-Asset Reporting Framework (CARF), with plans for data exchanges to begin by 2027. This demonstrates Guernsey's commitment to aligning with global standards for combating tax evasion in the crypto space. The GFSC’s continuous engagement with the evolving crypto landscape, including recent statements indicating a more flexible, albeit still cautious, approach to certain digital assets, showcases Guernsey's progressive yet responsible regulatory philosophy.

Summary Points

Here is the detailed regulatory analysis report on Retail Crypto Trading in Guernsey converted into a clear, well-structured bullet point format:

## Guernsey Retail Crypto Trading Regulatory Overview (as of June 2025)

Overall Regulatory Status: Allowed-Regulated

Guernsey operates a permissive but highly cautious regulatory framework for retail cryptocurrency trading, emphasizing investor protection and controlled exposure.

### 1. Regulatory Status of Retail Crypto Trading in Guernsey

  • Allowed-Regulated: Guernsey permits retail exposure to crypto assets but within a comprehensive and controlled regulatory framework.
  • No Explicit Retail Exchange Ban: While there isn't a direct ban on retail crypto trading by exchanges, the regulatory focus channels retail investors primarily through regulated collective investment schemes (funds) or licensed service providers.
  • Controlled Environment: The framework ensures retail investors access crypto assets via regulated avenues, with mandated detailed risk warnings and investor protections for non-professional investors.
  • Focus on Fund Structures: Guernsey actively promotes itself as a leading jurisdiction for regulated crypto funds (e.g., Bitcoin ETFs, private investment funds leveraging blockchain).
  • Encourages fund tokenisation under stringent governance and risk control protocols, often requiring private, permissioned blockchains for fund registers.
  • No Standalone Retail Crypto Trading Framework: Cryptocurrencies are treated as "virtual assets" integrated into Guernsey's existing investment fund and securities regulatory architecture, rather than having a distinct retail crypto trading regime.

### 2. Key Regulatory Body and Its Role

  • Guernsey Financial Services Commission (GFSC):
  • Pivotal Role: The primary regulatory authority overseeing the financial sector, including virtual asset activities.
  • Approach: Adopts a cautious yet progressive approach, balancing innovation with robust investor protection and financial stability.
  • Support for Innovation: Actively supports innovation in the crypto space, particularly concerning fund structures and fund tokenisation, provided robust governance, risk controls, and comprehensive investor protection measures are in place.
  • VASP Scrutiny: Maintains a cautious stance towards Virtual Asset Service Providers (VASPs), especially those offering retail exchange services, subjecting them to significant regulatory scrutiny and licensing.
  • Evolving Stance: Continuously adapts its approach; a June 2025 statement indicated a more flexible stance towards certain digital assets (e.g., Bitcoin) for collective investment schemes, while maintaining caution regarding direct retail exchange services.

### 3. Important Legislation and Regulations

  • The Protection of Investors (Bailiwick of Guernsey) Law, 2020 (POI Law):
  • Effective: November 1, 2021.
  • Mandate: Requires any entity conducting "controlled investment business" in or from Guernsey to hold a GFSC license.
  • Scope: "Controlled investment business" includes "restricted activities" (e.g., promotion, dealing, management, administration, advising, custody, operating an investment exchange) in connection with "controlled investments" (e.g., collective investment schemes, general securities, derivatives).
  • The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (LCF Law):
  • Effective: July 1, 2023.
  • Regulation of VASPs: Regulates and licenses Virtual Asset Service Providers (VASPs), requiring them to obtain a Part III VASP license (unless exempt).
  • Definition: Provides a broad definition of "virtual assets" and outlines various VASP activities, aligning with FATF international standards.
  • Retail Prohibition: Explicitly prohibits VASPs from directly targeting individual (retail) consumers.
  • The Anti-Money Laundering and Countering Financing of Terrorism (Bailiwick of Guernsey) Law, 2008 (AML/CFT Law):
  • Foundation: Establishes core requirements for preventing money laundering and terrorist financing.
  • VASP Application: VASPs are explicitly subject to this law, necessitating stringent compliance with customer due diligence (CDD), ongoing transaction monitoring, and suspicious activity reporting.
  • Guidance: GFSC issued clarifying guidance on its application to virtual asset activities in 2018.

### 4. Requirements for Compliance and Licensing

  • VASP Licensing: VASPs must obtain a Part III VASP license under the LCF Law.
  • Investment Business Licensing: Entities conducting "controlled investment business" involving crypto assets must secure appropriate licenses from the GFSC under the POI Law.
  • AML/KYC Compliance: All entities dealing with crypto assets are obligated to comply with comprehensive AML/KYC regulations as per the AML/CFT Law.
  • Robust Governance & Risk Controls: Required for collective investment schemes offering indirect exposure to cryptocurrencies.
  • Investor Protection: Comprehensive investor protection measures and detailed risk warnings are mandated for non-professional investors.

### 5. Notable Restrictions or Limitations

  • Direct Retail VASP Prohibition: The GFSC has generally imposed a blanket ban on licensing VASPs whose business model involves directly targeting individual (retail) customers.
  • Dealings through intermediaries might be considered on a case-by-case basis.
  • Indirect Exposure Emphasis: The regulatory framework effectively directs retail investors to access crypto assets through regulated funds or licensed service providers, rather than direct, unsupervised exchange trading.
  • No Separate Retail Framework: The absence of a distinct retail crypto trading regime means crypto activities are subject to existing, often stringent, financial services regulations.

### 6. Other Important Considerations

  • Asset Classification:
  • Guernsey's legal system treats virtual assets as a form of "property."
  • They are generally not classified as securities under the existing regulatory framework.
  • The GFSC employs a principles-based approach, evaluating each case individually.
  • Taxation:
  • No Specific Legislation: Guernsey currently lacks specific tax legislation for cryptocurrencies.
  • General Treatment: Generally treated akin to foreign currency for tax purposes.
  • Individuals: Occasional disposals by individuals are typically considered capital gains or losses and are generally not subject to taxation.
  • Businesses: Gains or losses realized in a business context are included in the business's accounts. Unrealized gains and losses from year-end revaluation are typically not taxable or relievable.
  • Mining: Cryptocurrency mining, particularly on a small or irregular scale, is generally not considered a trading activity that would incur income tax.
  • International Standards: Guernsey is committed to implementing the OECD's Crypto-Asset Reporting Framework (CARF), with initial exchanges of data intended to commence by 2027 (based on 2026 data).

### 7. Recent Developments and Future Outlook

  • Evolving GFSC Stance (June 2025): A statement indicated a more flexible approach towards certain digital assets, acknowledging the growing maturity of some cryptocurrencies like Bitcoin, particularly for collective investment schemes.
  • Leading Crypto Fund Jurisdiction: Guernsey maintains its status as a leading jurisdiction for crypto funds, evidenced by the authorization of the world's first Tier 1 Bitcoin ETF in January 2022.
  • Environmental Impact Reporting: Under the LCF Law, VASPs are now required to publish annual information regarding the environmental impact of the consensus mechanisms of the virtual assets they handle.
  • Continuous Adaptation: The GFSC's approach to digital assets is continuously evolving, reflecting a progressive yet responsible regulatory philosophy.

Full Analysis Report

Retail_Trading_Status in Guernsey

Report Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

1. Identified Current Status

Allowed-Regulated

2. Detailed Narrative Explanation

Individual citizens and residents in Guernsey are legally permitted to buy, sell, and hold cryptocurrencies for their own account. This activity is considered exempt from requiring a specific license. However, the broader regulatory environment for virtual assets and Virtual Asset Service Providers (VASPs) in Guernsey is established and places a strong emphasis on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance, investor protection, and market integrity.

Historically, the Guernsey Financial Services Commission (GFSC) has approached cryptocurrencies with caution, particularly concerning retail investor involvement due to perceived risks of fraud and money laundering. While individuals trading for themselves are exempt from licensing, any entity providing services related to virtual assets by way of business, including exchanges, custodians, or platforms facilitating retail trading, falls under the definition of a VASP.

The primary legislation governing VASPs is the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (LCF Law), which came into full effect on July 1, 2023. This law mandates that VASPs obtain a license from the GFSC and adhere to specific rules, including robust AML/CFT measures in line with Financial Action Task Force (FATF) standards.

A significant aspect of Guernsey's VASP regime has been a cautious stance towards retail customers. Initially, the GFSC indicated a "blanket ban on the licensing of any VASPs intending to do business with retail customers." While direct retail-focused VASP licensing remains restrictive, recent statements from the GFSC in June 2025 suggest a more nuanced approach, particularly regarding indirect investment through regulated fund structures. The GFSC has acknowledged the evolution of the crypto market and is open to well-managed funds investing in cryptocurrencies, even for retail investors, provided specific expectations are met, such as ensuring investors receive professional advice and do not commit more than they can afford to lose.

Despite this cautious approach to VASPs directly servicing retail clients, the act of an individual buying, selling, or holding cryptocurrency for their own personal investment is not prohibited. The GFSC has explicitly stated: "No, buying and selling for yourself is exempt. However, if you buy cryptocurrency for another person or business, or provide other products or services related to virtual assets, then you will need a licence."

Therefore, while individuals can trade, the platforms they might use (if based in or operating from Guernsey, or a Guernsey business operating elsewhere) would be subject to stringent regulation. Guernsey has also adopted the Crypto Asset Reporting Framework (CARF) to ensure tax transparency for crypto-asset transactions.

General warnings about the risks of cryptocurrency investments, especially Initial Coin Offerings (ICOs), have been issued by the GFSC, advising retail investors to exercise extreme caution and be prepared for potential losses.

In summary, retail trading by individuals for their own account is permitted. The regulatory framework focuses on licensing and supervising VASPs, with a historically restrictive but evolving stance on direct retail client services by these providers. AML/CFT obligations are paramount for all regulated entities in the virtual asset space.

3. Specific, Relevant Text Excerpts

  • Guernsey Financial Services Commission (GFSC) FAQs: "I want to buy Bitcoin (or other cryptocurrency). Do I need a licence? No, buying and selling for yourself is exempt. However, if you buy cryptocurrency for another person or business, or provide other products or services related to virtual assets, then you will need a licence."
  • Guernsey Financial Services Commission (GFSC) FAQs (Elaboration on exemption): "Yes, the exemption applies to legal persons that, on their own behalf, buy or sell (exchange) virtual assets for fiat currency or other virtual assets, hold virtual assets or trade virtual assets. This exemption is subject to the provision that the person is not engaged in an arrangement involving the offer or provision of products or services related to virtual assets to third parties and does not support or facilitate other entities which offer or provide virtual asset products or services, derivatives of virtual assets or reference virtual assets."
  • Collas Crill (February 2023, regarding VASP licensing for retail): "The GFSC has placed a blanket ban on the licensing of any VASPs intending to do business with retail customers. Dealing to individuals may be considered through an intermediary, but the GFSC has expressed an intention to deal with Part III VASP applications on a daily basis, and reserves the right to add further restrictions based on the business model."
  • Charltons Quantum (referencing the LCF Law, 2022): "Retail customer ban: VASPs in Guernsey are only permitted to provide services to institutional and wholesale counterparties, excluding retail investors." (Note: This reflects the general VASP licensing restriction, not the individual's right to trade).
  • GFSC Public Statement (June 2025, on crypto funds): "The Commission recognises that crypto has been evolving, and some crypto currencies, such as Bitcoin, appear to be entering a more mature period. Guernsey, as a long standing and experienced funds centre, considers that collective investment schemes can, when appropriately run, provide vehicles for a range of investors to invest indirectly in crypto currencies. This is provided that the fund investor is well informed of the risks and is able to bear any potential losses."
  • GFSC Public Statement (June 2025, specific expectations for funds with retail exposure): "Additionally, there are specific expectations of any funds with crypto exposure, including: mechanisms to ensure that retail investors have received professional advice;; mechanisms to ensure retail investors do not commit more than they can afford to lose;; the regulated status of service providers, including any custodian; and detailed consideration in the Business Risk Assessment to ensure appropriate compliance monitoring plans, testing and risk management processes."
  • Mourant (June 2023, on the LCF Law): "The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 will regulate and license persons providing a range of services including those related to virtual assets and cryptocurrencies (known as Virtual Asset Service Providers or VASPs)... The rationale for regulating VASPs is to ensure that anyone carrying out activities in this business sector, which is considered by the Commission to be potentially high risk, is properly regulated for the purposes of anti-money laundering and countering the financing of terrorism and proliferation financing."
  • States of Guernsey (on CARF): "The CARF will target any digital representation of value that relies on a cryptographically secured distributed ledger or a similar technology to validate and secure transactions... Entities or individuals that provide services effectuating exchange transactions in crypto assets for, or on behalf of customers would be obliged to report under the CARF."
  • GFSC Consumer FAQs (on ICOs): "The Commission would not expect ICOs to be sold to, or bought by, retail investors. Anyone considering buying an ICO should carry out full research on the ICO project and be prepared to lose the entire value of their investment."

4. Direct, Accessible URL Links to Specific Sources

Web Sources (16)

Sources discovered via web search grounding

Search queries used (6)
  • Guernsey cryptocurrency regulation retail trading
  • Guernsey Financial Services Commission cryptocurrency rules for individuals
  • AML/KYC requirements cryptocurrency Guernsey
  • Legal status of buying and selling cryptocurrency in Guernsey for residents
  • Guernsey government official statements on retail crypto trading
  • Regulation of Virtual Asset Service Providers in Guernsey
Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Reviews

No reviews yet

Submit Review

Challenge: Disagree with the analysis | Approval: Confirm it's correct | Refinement: Suggest improvements