Guernsey opens the door to greater digital finance opportunities

The Guernsey Financial Services Commission has taken a significant step towards expanding digital finance opportunities in the Bailiwick by making changes that will allow firms to develop new services for a wider range of customers.

The Lending, Credit and Finance (Amendment) Rules, 2026, form part of the Commission’s Digital Finance Initiative, which is designed to support innovation and help position Guernsey as a trusted, agile and forward-thinking jurisdiction for digital financial services. The Rules were made on 9 September 2026 and will come into effect on 1 October 2026. 

The amendments remove the rule requiring a firm already licensed by the Commission to hold a separate virtual asset service provider licence in every case where it wishes to undertake virtual asset activity. By reducing unnecessary duplication, the changes will support innovation, lower barriers to entry and create greater flexibility for firms looking to establish or expand digital finance operations in Guernsey.

The changes remove the blanket restriction that prevented virtual asset service providers from offering services to retail customers. This means that firms licensed and regulated by the Commission should be able to better meet the growing demand for digital finance services. 

The Commission has also removed a separate environmental reporting requirement applying specifically to virtual asset service providers. This requirement was developed when blockchain technology was more closely associated with energy-intensive models and before the move towards a more flexible approach to sustainability reporting. Its removal brings the treatment of virtual asset businesses into line with firms operating under the Commission’s other regulatory laws and with developing international practice. 

William Mason, Director General, said:

“Digital finance offers real opportunities for Guernsey’s finance sector. Our improved regulations put those opportunities within reach by removing barriers that are no longer necessary and giving well-regulated firms greater freedom to develop services that meet the changing needs of the markets they serve or aspire to serve. These revisions are one element of a wider programme of work continuing through the Digital Finance Initiative. The Commission has also published guidance on tokenisation and is progressing work in areas including stablecoins, digital custody and the use of technology to enhance anti-financial crime compliance. Taken together, these measures should provide businesses with a supportive framework for innovation and support technological growth in Guernsey.”