Following the recently-signed Memorandum of Understanding between Binance and Digital Jersey, the Jersey Financial Services Commission (JFSC) has issued a Guidance Note on the approval process for ICOs.
The ICO Guidance Note is aimed at creating a transparent process for ICOs to obtain consent from the JFSC to issue tokens and raise capital in Jersey. At the same time, it sets out safeguards that token issuers must put in place to protect against scams and ensure money laundering checks are done.
“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,” said Binance’s CEO, Changpeng Zhao, known as CZ. “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.”
Binance has recently started building a fiat-to-crypto exchange in Jersey, which will allow customers to buy bitcoin and ether using sterling trading pairs. The activities of the new exchange would be registered with the Jersey Financial Services Commission (JFSC).
Digital Jersey’s CEO, Tony Moretta, commented: “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 ICO Guidance Note sets high standards designed to prevent any scam projects ever setting foot in Jersey.”