Binance and Digital Jersey welcome ICO guidelines
Following the recent regulatory guidance note on initial coin offerings in Jersey, digital exchange Binance and the island’s economic development agency Digital Jersey, who recently signed a memorandum of understanding, have welcomed the guidelines.
Jersey Financial Services Commission (JFSC) issued its ICO Guidance Note on 12 July to regulate the process of approval for raising funds from the public for building blockchain projects.
The guidance will enable ICOs to be launched on the island providing the issuer can meet various controls that have been put in place to help reduce the risks associated with them.
Indeed, token issuers must convince JFSC that they have adequate measures in place to protect against scams and fraud and carry out checks against money laundering.
Tony Moretta, chief executive of Digital Jersey, added: “Jersey’s crypto community has been collaborating with the financial services regulator to strike the right balance in the ICO Guidance Note.
“Jersey has been at the forefront of crypto regulation for some time and the ICO Guidance Note takes us another step forward.
“Jersey’s treatment of exchanges and ICOs is permissive and allows for innovative businesses to operate in a country with a first-class regulatory reputation.
“On the other hand, the note sets high standards designed to prevent any scam projects ever setting foot in Jersey.”
Binance, the world’s largest cryptocurrency exchange, has recently started building a fiat-to-crypto exchange in Jersey that will allow its customers to buy bitcoin and ether using sterling.
Changpeng Zhao, chief executive, said: “Raising money through ICOs rather than traditional venture capital is becoming a more prevalent and, in many cases, preferred way to fund tech start-ups.
“They allow founders to focus on product development, rather than spending a disproportionate amount time courting investors and negotiating complex subscription documents.
“ICO is a much faster route to market compared to other means of funding, and engages a wider crowd of investors including early adopters and enthusiasts who also form the initial user base pivotal to the success of a project in the early stages.”