Recently, we are seeing more and more news from Jersey, a British island situated off the south coast of England, wedged between northern France in the English Channel. Quite an idyllic location by all accounts, not that Iâve been myself. Back to the point. Jersey is starting to become a bit of a cryptocurrency hot spot, this is partly down to both its proximity to mainland Europe and the UK, and, of course, its status as a tax haven. As a result of this, Malin Nilsson, the Managing Director of International firm, Duff and Phelps, has published a report in the Jersey Evening Post that highlights what Jersey need to do, to prepare for the cryptocurrency boom that Nilsson believes is coming to Jersey. Nilsson believes that Jersey need to Isolate, Integrate and, Regulate. You can see the full article for yourself, here- https://jerseyeveningpost.com/news/business/2018/06/26/isolate-integrate-and-regulate--being-cautious-during-jerseys-crypto-boom/ According to Nilsson:
âGovernments and regulators are struggling with the concept of how to regulate something which is very different to traditional asset classes. While some governments have taken a highly cautious approach to cryptocurrency or outright banning it, Jersey is leading the way as demonstrated by the recent Memorandum of Understanding signed with Binance.âMoreover:
âThere are three broad approaches: isolate (imposing loose guidelines to allow the industry to evolve without heavy regulation), integrate (by allowing cryptocurrencies to integrate into existing regulatory and economic frameworks) and regulate (via heavy participation of government and regulatory bodies).âNilsson then goes on to discuss these concepts a little further, stating that:
âThe concepts of isolate, integrate and regulate are applied at different points of the development life-cycle and the public should be reminded of the speculative and risky nature of virtual currency as an investment. However, for all the excitement of virtual currency, regulation of this area may actually look boringly similar to more traditional financial services firms.âAnd in conclusionâ¦
âWhatever the approach, industry participants should work side by side with government agencies and regulators to ensure we remain one step ahead. Indeed, Jerseyâs track record in the virtual currency space and the recent Binance announcement is evidence this is taking place. The Island is clearly embracing the world of virtual currency. Cautiously.âThese are all very positive sentiments. Nilsson looks to believe that the future for cryptocurrency in Jersey is bright, but, in order to succeed, authorities need to step in now to ensure that a culture is able to develop. Airing caution, is the only way in which Nilsson believes Jersey can embrace the blockchain revolution. These sorts of reports are very important. At the very least, Nilssonâs words are no doubt going to be read by local citizens who may be feeling a little anxious about how cryptocurrency is invading Jerseyâs shores. Within this, Nilsson at least provides some reassurance to these people, people that can then go on to pressure the local authorities to take steps towards establishing regulations. Either way, Jersey is attracting an awful lot of attention at the moment and thus, is promising to act as a key figure for cryptocurrency and blockchain adoption in Europe. Moreover, this in turn will apply pressure to the UK cryptocurrency taskforce too, a group that are working to build UK specific regulations. Together, Jersey could help to turn not just itself into the crypto capital of Europe, but the rest of the UK too.