The Guernsey Financial Services Commission (FSC) has launched a consultation outlining measures aimed at supporting financial services’ adoption of digital finance.

The consultation looks to provide clarity on the regulatory treatment of emerging technologies and proposed targeted amendments to open up the Bailiwick of Guernsey’s Virtual Asset Service Provider (VASP) regime.

It has proposed permitting the tokenisation of collective investment schemes on public blockchains, subject to appropriate controls, and clarifying the treatment of tokenised securities under the Protection of Investors Law.

The commission also proposed opening up the VASP regime by removing restrictions on retail activity and simplifying licensing requirements.

A new framework for stablecoin issuers has been proposed, alongside assistance for digital asset custody services, guidance supporting blockchain technology for insurance contracts, and enhanced anti-financial crime compliance through technology.

The consultation is now open and will run until 6 March 2026.

“This consultation is about ensuring Guernsey positions itself at the forefront of good quality financial innovation whilst maintaining regulatory integrity,” commented Guernsey FSC director general, William Mason.

“By providing clarity on emerging technologies and opening up opportunities for digital finance, we aim to support the Bailiwick’s financial services sectors in adapting to global trends and attracting new business.”

Bank Aston CEO, Paul Gorman, added: “We welcome the GFSC’s digital finance initiative and stand ready to play our part.

“This is a hugely exciting area with tremendous potential. The Guernsey FSC’s willingness to look at it will help keep Guernsey at the cutting edge of digital innovation and could open a massive new market for its financial services industry.

“Estimates suggest there are more than 500 million holders of cryptocurrencies worldwide. With digital assets now moving into the mainstream, looking at ways to enable inter-operation with traditional financial services is the pragmatic and sensible move.

“There is a long way to go – there need to be ways to hold and convert digital currencies and tokenised assets, for example.

“This consultation signals a progressive and forward-thinking outlook, ensuring Guernsey can operate at the centre of the global financial radar. This market is rapidly evolving so we hope as many people as possible contribute and respond to the consultation.”

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