"Sandbox" Reforms Leave Jersey Well Placed As Virtual Currencies Enter The Mainstream

The introduction of a "regulatory sandbox" to enable businesses that provide virtual currency exchange services (Exchangers) to experiment and test new products and applications in Jersey under light-touch regulation have been welcomed by Ogier's IP, Tech and Digital team.

Changes to two key pieces of legislation that were approved unanimously in June are now in force - the coupled effect of the reforms and an exemption order means that amendments to the Proceeds of Crime and the Proceeds of Crime (Supervisory Bodies) laws establish a £150,000 turnover threshold for Exchangers to develop and test innovative products, services, business models and delivery mechanisms without having to fulfil all of the same regulatory burdens of a bank or other regulated entity.