Guernsey consults on new law to regulate VASPs

The Guernsey Financial Services Commission has issued a consultation paper, which among other matters seeks input on proposals to regulate fintech platforms operating crowdfunding, peer to peer platforms and virtual asset service providers (VASPs).

The consultation (https://www.gfsc.gg/commission/legislation-and-guidance) follows the passing of The Lending, Credit and Finance (Bailiwick of Guernsey) Law 2022, which was passed by the States of Guernsey on 14 July.

The Commission said that the new rules are to help ensure that the regulatory environment remains in line with the recommendations outlined by the Financial Action Task Force, particularly regarding "how countries must act to stop crypto being used for criminal purposes".

It added: "The Law will also replace the existing Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008, and introduce instead the licensing and regulation of "financial firm businesses"".

A wide range of stakeholder feedback is being sought, including from consumers and "potential licencsees".