The Guernsey Financial Services Commission has published a feedback paper and a guidance note on the tokenisation of assets following its consultation on Supporting Growth with Digital Finance. The update concludes that Guernsey’s existing technology-neutral framework can support digital finance, while targeted refinements are intended to reduce complexity, give firms clearer routes to market and support innovation within existing regulatory standards. The measures being taken forward include new guidance on the tokenisation of investments and other assets, permission to use public blockchains for fund tokenisation, and clarification of the treatment of tokenised securities. The Commission is also removing rules that prevented virtual asset service provider licensees from serving retail customers and removing additional environmental reporting obligations. Further clarifications include that tokenised insurance-linked securities do not require virtual asset service provider licensing, support for the adoption of technologies such as smart contracts, and simple reporting requirements to help the Commission monitor digital finance activity in the Bailiwick. The changes are also designed to simplify licensing by allowing existing investment and insurance licensees to carry out certain virtual asset activity under clear conditions without needing an additional virtual asset service provider licence. The Commission said it will work with the States of Guernsey to simplify and clarify parts of the legal and regulatory framework for digital finance businesses. It also said further feedback and rules on stablecoins are expected in autumn 2026.

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