Eternity Law International News VASP Regulation in Guernsey

VASP Regulation in Guernsey

August 23, 2023

The financial world is going through a big transformation because of digital money. As these digital forms of value become more important, regulators all around the world are trying to find good ways to make sure they’re used safely, fairly, and honestly. Guernsey, a big player in finance, is taking the lead by creating clear rules for companies. VASP Regulation in Guernsey is designed to handle the tricky parts of this new and changing field. The ones who follow them can achieve a VASP license in Guernsey.

Making Sure Things are Fair and Safe

The main goal of these rules for VASPs is to stop illegal forms of activities like money machinations, and illegal financing. But at the same time, Guernsey wants to encourage new ideas and good behavior. Guernsey’s approach matches what other financial centers are doing to handle the different sorts of risks that come with virtual assets.

The meaning of the virtual asset(VA) as a very wide and comprehensive entity. It covers all sorts of digital property that can be exchanged, traded, moved around, and used for investing. 

Different Services, Clearer Rules

The rules are really careful about listing out the services that VASPs may offer and that need to be overwatched over. This includes things like changing virtual assets into regular money, moving virtual assets around, and being part of services related to VA. The list is long because there’s a lot of different things that can happen with virtual assets.

Adapting to a Changing World

Guernsey estimates that the behavior of VA keeps changing. The Commission approves they’re going to be flexible when they decide what counts as a virtual asset and VASP activity. This way, even new ideas and services will fit under these rules. Guernsey wants to stay on top of what’s happening in their jurisdiction and make sure the rules stay strong and useful.

Getting a License

Starting from July 1, 2023, if a company does VASP operations in Guernsey or from there, they have to follow the LCF Law rules. This is true if these are a part of the company’s business or if it’s a local company. This is when VASPs require to get a Part III VASP license in Guernsey under the LCF Law, unless there’s a good reason not to.

But there are some cases that don’t need to follow these rules. If a person is just doing virtual asset stuff for themselves, or if a company is helping VASPs with their business tasks, they might not need a license. There are also exceptions for certain investment plans that are linked to virtual assets.

Being Honest and Open

Subjects with licenses are obligated to:

  • Embrace serious responsibilities to maintain transparency and honesty in their operations. Adhere to the regulations outlined in the LCF Rules, which ensure proper structures and knowledgeable individuals are in place.
  • Establish the right procedures and include qualified individuals to lead their activities.

Talking and Growing

The Commission is discussing with people about how to make rules better for VASPs to fight against illegal activity. This shows that Guernsey is serious about having strong rules. The new guidelines, coming in July, will help VASPs know what they have to do to follow these rules.

To Wrap Up, Guernsey’s way of regulating cryptocurrency shows they want to encourage new ideas while also keeping a close eye on things. The rules they’ve set up match the changing world of finance. They’re flexible, clear, and fit in with what the whole world is doing. Guernsey is prepared to insure VA grow in a good way and everyone plays by the rules in this changing field.

You could be interested

Gaming licenses in Zambia

Online-gambling has been actively developing for several years. This fact made Zambia`s governance think about adopting certain legislative acts to restrain this endeavor. The main purpose of such documents is to identify fraudulent organizations, to ensure the safety of data about players and their accounts, and to provide fair and honest rules on the accrual...

Crypto license in Romania

In July 2019, local governmental bodies adopted the Law regulating the prevention of illegal circulation of funds and monetary support for terrorism. New regulation provisions – GEO – required that companies that have received such a permit, such as a crypto license in Romania, and act as services providers for cryptocurrencies exchanges and virtual wallets,...

Obtaining а citizenship of Grenada

Obtaining citizenship of Grenada for the acquisition of real estate – recommendations and reviews. Even the global epidemic of Covid 19 from the Middle Kingdom is not able to interfere with obtaining the coveted citizenship of this country. To do this, you just need to purchase real estate there for a total amount of 220...

So you want to register a Money Service Business (MSB) in Canada?

Modern business-projects are connected with the provision of high-tech services. If we are talking about financial structures, it is an extremely profitable interaction to work in the field of providing cash-handling assistance. New companies are regularly required in the market to provide fast and quality money transfers and foreign currency-transactions. However, such companies need to...

Forex license in Thailand

Organizations dealing with securities weren’t earlier allowed to implement purchases, vends or exchanges of foreign currencies directly with customers, as it was impossible to license it. Due to the increasing popularity of investing in foreign currency-markets, Thailand’s regulators created new regulations giving securities-companies possibilities to apply for permission for foreign exchange-operations. Forex license in Thailand...

Purpose and scope of MiCA regulation

MiCA, EU law of cryptocurrency market was put into consideration in the EuroParliament in March 2022, and as result, the amendment to limit PoW-based crypto assets, which would have efficiently resulted in a ban on Bitcoin, has obtained a rejection. Read on to find out what is the purpose and scope of MiCA regulation and...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001


Gediminas Avenue, 44A


Kesklinna linnaosa, Tuukri 19


Lochrin Square, 1


Jacovides Tower, 5 floor


Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


Level 42, Suntec Tower Three, 8 Temasek Boulevard


20 Martin Place


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7