Advantages Requirements Company registration Regulations Taxation FAQ

Crypto License in Jersey

As an international financial center with a favorable business climate, Jersey offers ideal conditions for crypto investments. Gofaizen & Sherle provides professional assistance and support in registering companies and obtaining a Crypto License in Jersey with a guaranteed turnkey solution.

Jersey has established itself as an attractive jurisdiction for cryptocurrency transactions thanks to the progressive policies of the Jersey Financial Services Commission (JFSC). The body was one of the first to approve the launch of a regulated Bitcoin investment fund, GABI Plc, setting a precedent for such innovation internationally.

In Jersey, cryptocurrency companies can take advantage of several key benefits: a simple registration process and a favorable tax climate, including an exemption from capital gains tax and a zero rate of corporate income tax for certain activities.

However, the jurisdiction does not offer complete discretion. While there is no specific Jersey crypto license, all transactions are subject to strict registration and monitoring by the JFSC. Companies are required to comply with transparency criteria and anti-money laundering measures, including registration with the JFSC, AML compliance, appointment of resident directors, and maintenance of good corporate governance.

Advantages of Obtaining a Crypto License in Jersey

Simplified registration process

Jersey offers foreign investors a quick and simple company registration process, which makes it much easier to enter the international market. The simplified procedure allows you to start your business quickly, minimizing bureaucratic delays.

Zero corporate income tax

Companies in Jersey benefit from a zero rate of corporate income tax, making the jurisdiction particularly attractive to businesses seeking to maximize their profits and optimize their tax liabilities.

High level of confidentiality

Jersey provides strict privacy for business owners, protecting personal and corporate data.

Minimum declaration requirements

Jersey does not have strict requirements for declaring cryptocurrency holdings, making it easier to manage investments in digital assets and reducing the administrative burden on companies.

Support for blockchain and DLT innovation

The Jersey government actively supports the application and development of blockchain and DLT technologies, seeing significant potential for the island’s economy.

Full foreign ownership

Jersey allows foreign investors to own 100% of companies without imposing restrictions on foreign ownership. This gives global businesses the freedom to take full control of their operations without having to find a local partner.

Stability and security

Jersey is known for its political and economic stability, making it a safe place to do business. The island offers reliable infrastructure and a high standard of living, which also helps to attract highly skilled professionals.

Strategic location

Situated between the UK and France, Jersey occupies a strategic position in Europe, providing easy access to major European financial markets and international trade routes.

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Requirements for a crypto license in Jersey

The following requirements must be met to operate legally in the jurisdiction, which is essentially the same as holding a Cryptocurrency exchange license in Jersey:

All cryptocurrency companies must register with the Jersey Financial Services Commission (JFSC) as VASPs (Virtual Asset Service Providers) if their activities include exchanging virtual assets for fiat currencies, exchanging between virtual assets, transferring or managing virtual assets, or providing financial services related to the issuance and/or sale of virtual assets.
Companies should implement strict measures and procedures to combat money laundering and terrorist financing, including thoroughly identifying customers, tracking transactions, and maintaining internal controls and risk management measures.
An anti-money laundering compliance officer and an anti-money laundering reporting officer should be appointed.
VASP activities must be carried on from or within Jersey, which entails management and supervision in Jersey, having an office or employees based in Jersey.
Companies must file regular financial statements with the JFSC and pay taxes appropriate to their activities. Which includes paying income tax using the ITIS system and social security contributions.
Companies must have at least one shareholder and one director. If the company is involved in security token exchange, a minimum of two Jersey resident directors are required.
Directors are required to act in good faith and in the best interests of the company while complying with company governance and disclosure requirements.

Company registration in Jersey

To start working with a Jersey crypto license, it is required that your cryptocurrency company is registered as a legal entity in Jersey. This requirement is because it is not possible to conduct an ICO under other legal forms or through unregistered means. Company registration must go through the JFSC, which ensures that all transactions comply with the imposed financial and legal regulations of the region. To register a cryptocurrency company in Jersey, follow these steps:

Choosing a business form

Step 1

Decide on the structure of the company. For cryptocurrency activities in Jersey, choosing the limited company form is recommended as it offers management flexibility.

Choose a company name

Step 2

Choose a unique name for your company that is not the same or too similar to already registered names. Ensure that the name reflects your company’s business and is in line with Jersey corporate standards.

Prepare corporate documents

Step 3

Prepare the main incorporation documents including the Articles of Association and Memorandum of Association, business plan, and business risk assessment. These documents should comply with Jersey law and reflect the shareholding structure, the powers and duties of the directors, and the rights and obligations of shareholders.
Appoint the directors and identify a registered address in Jersey to be used as the company’s registered office.

Register the legal entity

Step 4

Submit an application for registration with the JFSC. Include all necessary documents and details of the beneficial owners of the company. Each beneficial owner who has a stake of more than 10%, as well as the co-founders who manage the company, must be identified.
Ensure that all documents are certified as required by the JFSC.

AML/CFT Compliance

Step 5

Ensure your company is compliant with AML/CFT requirements, which includes preparing and implementing appropriate policies and procedures, including integrity assessments and ongoing transaction monitoring.

Confirm compliance

Step 6

Once your company has been incorporated, you will need to open a corporate bank account and register with the Jersey tax and social security authorities for tax and social contributions.

Find more information about the Crypto License in Jersey

Cryptocurrency Regulations in Jersey

Jersey has established its position as a crypto-friendly jurisdiction by providing a regulated space for cryptocurrency transactions and the world’s first regulated Bitcoin investment fund.

The Jersey Financial Services Commission (JFSC) is the key regulator of the financial sector in the island of Jersey. It is responsible for the regulation, supervision, and development of the financial industry, aiming for a balanced and progressive approach. The JFSC has licensing and supervisory powers over various sectors including banking, investment, and insurance businesses, as well as not-for-profit organizations and companies working to prevent money laundering and terrorist financing. They also manage the company registry, registering and supervising the activities of financial market entities on the island.

In addition, the JFSC is innovating to support innovation in the digital asset industry. However, despite its progressive attitude towards digital assets, Jersey is not a jurisdiction with complete freedom of action for cryptocurrencies and maintains strict regulatory controls, especially after the collapse of major crypto exchanges in 2022.

Jersey has not introduced specialized legislation for cryptocurrencies but has integrated them into the existing financial services regulatory structure. The laws that form the basis of cryptocurrency regulation in Jersey:

The Financial Services (Jersey) Law 1998 (FSJL) impacts cryptocurrency companies by requiring any activity classified as ‘financial services’ to be regulated and licensed. If a cryptocurrency company is in the business of managing funds, trading securities (including security tokens), or providing investment advice, it must comply with FSJL standards. Companies offering custody of crypto assets may also be subject to this legislation if they act as trustees or provide fund-related services.

The Proceeds of Crime (Jersey) Law 1999 (POCJL) sets out requirements to prevent money laundering relating to all businesses, including crypto exchanges and other forms of crypto activity.
The Proceeds of Crime (Jersey) Law 1999 (POCJL) sets out requirements to prevent money laundering relating to all businesses, including cryptocurrency exchanges and other forms of crypto activity.

The Good Business Practices Policy (SBPP) aims to protect Jersey’s reputation as a financial center by regulating cryptoassets as a “sensitive activity” requiring increased scrutiny and compliance with AML/CFT regulations.

The JFSC’s ICO guidance was published in response to a surge of interest in ICOs. In it, the JFSC requires cryptocurrency companies to have a robust governance structure and a clear understanding of consumer rights and AML obligations.

The VASP regime is introduced to regulate virtual asset service providers requiring compliance with all AML/CFT/CPF standards. All VASP transactions must be conducted from Jersey or have a close connection to the jurisdiction.

VASP includes activities involving the exchange between virtual and fiat currencies, the transfer of virtual assets, and their management or safekeeping. Organizations conducting VASP activities must register with the JFSC and are subject to strict regulatory oversight.

The Good Business Practice Policy (SBPP) aims to protect Jersey’s reputation as a financial center by regulating crypto-assets as a “sensitive activity” requiring increased scrutiny and compliance with AML/CFT regulations.

Taxation of cryptocurrencies in Jersey

While Jersey does not have specific laws explicitly governing the taxation of cryptocurrencies and digital assets, the Island’s tax controller has developed guidance that clarifies how general tax principles should be applied to such assets. The guidance covers both income tax and goods and services tax, emphasizing that cryptocurrencies are subject to taxation in line with traditional financial instruments, reflecting Jersey’s desire to maintain its reputation as a cutting-edge financial center. Companies wishing to hold a Cryptocurrency exchange license in Jersey can enjoy the following fees and tax rates:

This guidance emphasizes that cryptocurrencies are taxable in line with traditional financial instruments.

Income Tax: Zero rates for many companies, including cryptocurrency companies, except for some regulated financial institutions.
Capital gains tax: Not levied, allowing investors to retain gains without additional tax liability.
Capital Transfer Tax: None in Jersey, including no tax on dividends and stamp duty on share transfers.
GST (Goods and Services Tax): Cryptocurrency transactions require conversion to pounds sterling for tax purposes, but many transactions may be exempt from GST depending on their nature.

FAQ about Jersey crypto license

Is crypto legal in Jersey?

Yes, cryptocurrency is legal in Jersey. The jurisdiction is actively attracting cryptocurrency transactions thanks to the progressive policies of the Jersey Financial Services Commission (JFSC). The JFSC approved the launch of the world’s first regulated Bitcoin investment fund, GABI Plc, setting a precedent for such innovation internationally.

Do you need a license for cryptocurrency in Jersey?

Although there is no specific Crypto License in Jersey, virtual currency-related companies must register with the Jersey Financial Services Commission (JFSC). This registration can be seen as analogous to the Cryptocurrency exchange license in Jersey.

Do you pay tax on crypto in Jersey?

Cryptocurrencies are taxed in Jersey under the general tax rules and principles that apply to other forms of income or assets. There is no specific ‘cryptocurrency tax’, but cryptocurrency income, such as trading or mining profits, may be subject to tax depending on the particular circumstances of its receipt.

What is Jersey crypto legislation?

Jersey has no specialized laws explicitly regulating cryptocurrencies. Crypto-asset activity is regulated under general financial services legislation and anti-money laundering measures. The Jersey Financial Services Commission requires cryptocurrency companies to register and comply with rules aimed at ensuring transparency and security of transactions.

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