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Jersey is a great place for crypto investments because it has a good business environment and is a global financial hub. Alparanjo can help you set up a company and get the necessary approvals for crypto activities in Jersey, offering a complete solution.

Jersey is known for its supportive rules on cryptocurrency, thanks to the Jersey Financial Services Commission (JFSC). The JFSC was one of the first to allow a regulated Bitcoin fund, GABI Plc, to launch, making Jersey a leader in this area.

Crypto companies in Jersey benefit from easy registration and low taxes, including no capital gains tax and a 0% corporate income tax on certain activities.

But, companies must follow strict rules. There isn't a specific crypto license, but all transactions must be registered and monitored by the JFSC. Companies need to follow transparency rules, fight against money laundering, register with the JFSC, appoint local directors, and maintain good corporate governance.

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Advantages of Obtaining a Crypto License in Jersey

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Easy registration process

Jersey makes it simple for foreign investors to register a company quickly, helping businesses enter the international market faster with less paperwork.

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No corporate income tax

Companies in Jersey don't pay corporate income tax, which helps businesses keep more profits and reduce taxes.

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High privacy protection

Jersey ensures strong privacy for business owners, keeping personal and company information safe.

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Minimal reporting requirements

Jersey has few rules for reporting cryptocurrency holdings, making it easier to manage digital investments and lowering the paperwork for companies.

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Support for blockchain and technology

The Jersey government supports the growth of blockchain and digital technologies, seeing great potential for the island's economy.

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100% foreign ownership

Foreign investors can fully own their companies in Jersey without needing a local partner, giving them complete control of their business.

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Safe and stable environment

Jersey is known for its political and economic stability, making it a secure place to do business. It has excellent infrastructure and a high quality of life, which attracts top professionals.

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Strategic location

Located between the UK and France, Jersey offers easy access to key European financial markets and global trade routes.

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Jersey Crypto license

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Requirements of a Crypto License in Jersey

To operate legally in Jersey, cryptocurrency companies must meet these
requirements, which are similar to having a cryptocurrency exchange license in Jersey:

  • All cryptocurrency companies must register with the Jersey Financial Services Commission (JFSC) as Virtual Asset Service Providers (VASPs). This applies if they exchange virtual assets for regular money, exchange between virtual assets, transfer or manage virtual assets, or offer financial services related to virtual assets.
  • Companies must have strict rules to prevent money laundering and terrorist financing. This includes checking customer identities, monitoring transactions, and having strong internal controls and risk management.
  • They must appoint both an anti-money laundering compliance officer and an anti-money laundering reporting officer.
  • VASP activities must be managed and supervised from Jersey. This means having an office or employees in Jersey.
  • Companies must submit regular financial statements to the JFSC and pay taxes according to their activities, including income tax through 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 exchanges, they need at least two directors who live in Jersey.
  • Directors must act in good faith, in the best interests of the company, and follow company governance and disclosure rules.

Procedure for Obtaining a Crypto
License in Jersey

To start using a Jersey crypto license, your cryptocurrency company must be legally registered in Jersey. You cannot run an ICO without this registration. The registration must go through the Jersey Financial Services Commission (JFSC), which makes sure all transactions follow local laws. Here are the steps to register a cryptocurrency company in Jersey:

1. Choose a Business Structure

Decide how your company will be structured. It's best to choose a limited company because it allows for flexible management.

Pick a unique name for your company that isn’t already used by another company. The name should reflect what your business does and meet Jersey’s standards.

Create the main documents needed to set up your company, like the Articles of Association, Memorandum of Association, business plan, and risk assessment. These documents should follow Jersey law and outline the company’s ownership, the roles of directors, and the rights of shareholders. You’ll also need to appoint directors and have a registered address in Jersey.

Submit your registration application to the JFSC with all required documents and details about the company’s owners. Anyone owning more than 10% of the company, along with the co-founders, must be named. Make sure all documents are certified as the JFSC requires.

Make sure your company follows anti-money laundering (AML) and counter-terrorism financing (CFT) rules. This includes having the right policies and procedures, as well as monitoring transactions.

After your company is registered, you need to open a corporate bank account and register with Jersey’s tax and social security authorities for taxes and social contributions.

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Jersey Crypto license

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Taxation and Regulations of
Cryptocurrency in Jersey

Jersey doesn't have specific laws about taxing cryptocurrencies and digital assets, but the tax authority has provided guidance on how regular tax rules apply to these assets. This guidance includes income tax and goods and services tax (GST), stating that cryptocurrencies will be taxed like traditional financial instruments. Jersey aims to keep its reputation as a modern financial center.

Companies wanting a cryptocurrency exchange license in Jersey can benefit from the following tax rules:

  • Income Tax: Many companies, including those in cryptocurrency, have a zero tax rate, except for some regulated financial institutions.
  • Capital Gains Tax: There is no capital gains tax, so investors can keep their profits without paying extra taxes.
  • Capital Transfer Tax: Jersey has no capital transfer tax, meaning there’s no tax on dividends or stamp duty for transferring shares.
  • GST (Goods and Services Tax): When using cryptocurrency, transactions must be converted to pounds sterling for tax purposes, but many may not be subject to GST, depending on the type of transaction.

Jersey is known as a friendly place for cryptocurrencies because it offers a regulated environment for crypto transactions and has created the world’s first regulated Bitcoin investment fund.

The Jersey Financial Services Commission (JFSC) is the main regulator for the financial industry in Jersey. Its job is to oversee and develop the financial sector while keeping a balanced and forward-thinking approach. The JFSC has the power to license and supervise different areas, including banking, investments, and insurance, as well as organizations working to prevent money laundering and terrorist financing.

The main laws affecting cryptocurrency in Jersey are:

  • Financial Services (Jersey) Law 1998 (FSJL): This law requires cryptocurrency companies that manage funds or trade securities to follow regulations and obtain a license.
  • Proceeds of Crime (Jersey) Law 1999 (POCJL): This law requires all businesses, including crypto exchanges, to follow rules to prevent money laundering.
  • Good Business Practices Policy (SBPP): This policy treats crypto assets as “sensitive activities” that require more scrutiny and compliance with anti-money laundering regulations.
  • VASP Regime: This framework regulates virtual asset service providers (VASP) and requires them to meet strict anti-money laundering standards.

Overall, Jersey aims to ensure that cryptocurrency activities are safe and regulated while maintaining its reputation as a strong financial center.

Any Questions

Frequently Asked Questions

Yes, cryptocurrency is legal in Jersey. The Jersey Financial Services Commission (JFSC) supports crypto transactions with its friendly rules. They even approved the first regulated Bitcoin investment fund, GABI Plc, which is a big step for innovation worldwide.
In Jersey, cryptocurrencies are taxed like other income or assets. There isn’t a specific ‘cryptocurrency tax,’ but if you make money from trading or mining cryptocurrencies, you may have to pay taxes based on how you received that income.
Jersey does not have special laws just for cryptocurrencies. Instead, crypto activities are regulated under general financial services laws and anti-money laundering rules. The Jersey Financial Services Commission requires crypto companies to register and follow rules to keep transactions safe and clear.
There isn’t a specific Crypto License in Jersey, but companies that deal with virtual currencies must register with the Jersey Financial Services Commission (JFSC). This registration is similar to a Cryptocurrency exchange license.
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