The Guernsey Financial Services Commission is marking the first anniversary of its Digital Finance Initiative.
Launched on 11 September 2025, the initiative was established to encourage digital financial innovation in the Bailiwick, including digital assets, tokenisation, stablecoins and the use of technology across financial services.
Over the past year, the Commission has moved from consultation and engagement to a series of changes and proposals aimed at clarifying regulatory expectations and providing routes to market for well-governed digital finance businesses.
Its Supporting Growth with Digital Finance consultation, launched in December 2025, sought views on how the regulatory framework could support digital finance while maintaining standards.
Respondents highlighted the strengths of the Commission’s technology-neutral and risk-based approach, while identifying areas where greater clarity and targeted changes could make it easier to offer new products and services.
In July, the Commission published proposals on tokenisation, including guidance on the tokenisation of investments and other assets, use of public blockchains for fund tokenisation and clarification of the treatment of tokenised securities.
Changes also included removing rules preventing VASP licensees from providing services to retail customers, removing additional environmental reporting obligations and clarifying that tokenised insurance-linked securities do not require separate VASP licensing.
In May, the Commission also updated its Financial Crime Handbook to support the use of technology to combat financial crime and encourage investment in appropriate solutions.
The Commission has continued to develop its Innovation Sandbox and Concierge, giving firms working on novel products, services and business models a way to engage with the regulator at an early stage.
Updated information and FAQs were published in April, while another participant was licensed through the Innovation Sandbox in August.
The Concierge service has also been strengthened with the appointment of Peter Deacon as Guernsey’s first Finance Sector Concierge, helping businesses considering Guernsey connect with public and private sector expertise.
The Digital Finance Initiative has also supported industry engagement through the Digital Forum, including discussions on stablecoins.
Work is now progressing on a regulatory framework for stablecoins, with feedback and rules expected by the end of the year.
Alice Joy, Director of External Affairs, said: “The first year of the Digital Finance Initiative has been about turning engagement into practical progress. We have listened to industry, improved the information available to firms and made targeted changes where greater clarity or flexibility can support responsible innovation.
“Being open to innovation does not mean lowering standards. It means making sure that regulation is clear, practical and capable of keeping pace with new technology. That is the balance Guernsey needs: open to serious innovation, clear about expectations and focused on maintaining trust.”
William Mason (pictured), Director General of the Commission, said: “Over the past year, the Digital Finance Initiative has demonstrated that a well-regulated international finance centre can support innovation in a practical and measured way.
“The overwhelming feedback we have is that innovative digital businesses do not want to operate in a lawless zone but rather want sensible and pragmatic regulations to create a framework around which they can confidently build advanced new ways to provide services to their customers.
“The work completed over the past year gives Guernsey a stronger platform on which to build the next generation of digital finance.
“The Commission will continue to work with its partners in government and industry to improve the legal and regulatory framework for digital finance, including its stablecoin policy work and opportunities to use technology more effectively to combat financial crime, while reducing costly administrative paperwork.”
