Virtual Currency Regulation In Jersey Takes Effect

Virtual currency trading value and volume is soaring globally, but regulating virtual currencies and those who provide virtual currency exchange services (Exchangers) is challenging.  

Exchangers operate at the interface between the physical and the virtual value chains, exchanging virtual money, such as Bitcoin, into tangible, so-called "fiat" money, or vice versa.

Now, the Proceeds of Crime (Miscellaneous Amendments) (Jersey) Regulations 2016 (the Regulations), which came into effect on 26 September 2016, have brought Exchangers within the ambit of Jersey's anti-money laundering legislation. Like other financial services businesses, Exchangers must comply with the island's laws, regulations, policies and procedures aimed at preventing and detecting money laundering and terrorist financing.