The Guernsey Financial Services Commission published a Digital Finance Consultation Paper setting out measures to support adoption of digital finance across the Bailiwick’s financial services sectors, including greater clarity on the regulatory treatment of emerging technologies and targeted amendments intended to open up Guernsey’s Virtual Asset Service Provider (VASP) regime. The package proposes permitting tokenisation of collective investment schemes on public blockchains subject to appropriate controls, clarifying the treatment of tokenised securities under the Protection of Investors Law, and removing the blanket restriction on retail activity in the VASP regime alongside simplified licensing requirements. It also outlines a proposed framework for stablecoin issuers, measures to assist digital asset custody services, guidance supporting the use of blockchain technology for insurance contracts, and the use of technology to enhance anti-financial crime compliance. The Commission linked the proposals to stakeholder engagement through its Digital Forum, including roundtables covering digital asset custody, tokenisation, stablecoins and artificial intelligence, and analysis of international regulatory developments. The consultation runs until 6 March 2026.

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