Supporting Growth with Digital Finance
11th December 2025
Today, the Guernsey Financial Services Commission which, inter alia, oversees a £1 trillion+ investment sector, launched its Digital Finance Consultation Paper, setting out measures to support the adoption of digital finance across the Bailiwick’s financial services sectors. The consultation seeks to provide clarity on the regulatory treatment of emerging technologies and proposes targeted amendments to open up the Bailiwick of Guernsey’s Virtual Asset Service Provider (VASP) regime.
The proposals reflect extensive stakeholder engagement through the Commission's Digital Forum. These have included roundtable discussions on digital asset custody, tokenisation, stable coins and artificial intelligence as well as analysis of international regulatory developments. They aim to build on Guernsey’s existing strengths while positioning the jurisdiction as a trusted and innovative hub for digital finance.
Key proposals include:
- 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;
- Opening up the VASP regime by removing the blanket restriction on retail activity and simplifying licensing requirements;
- Introducing a new framework for stablecoin issuers;
- Assisting digital asset custody services;
- Guidance supporting blockchain technology for insurance contracts; and
- Enhancing anti-financial crime compliance through technology.
William Mason, Director General, said: “This consultation is about ensuring Guernsey positions itself at the forefront of good quality financial innovation whilst maintaining regulatory integrity. 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.”
Gillian Browning, Deputy Director General (Policy and Supervision), said: “Stakeholder engagement, building on the Bailiwick’s existing strengths, has been pivotal to the Commission’s digital finance policy development thus far. All feedback during the consultation period will be valuable; enabling us to assess risks, opportunities, and potential business demand; towards the goal of supporting future sustainable growth.”
The consultation will run until 6 March 2026.
Read the consultation paper here: Supporting Growth with Digital Finance Consultation Paper
Complete the survey here: Supporting Growth with Digital Finance Survey