The government of Jersey, the largest of the Channel Islands, has published a consultation paper on the risks and regulations for virtual currencies, including bitcoin. The report will be similar to that of Financial Action Task Force previously covered by Bitcoin Magazine. However, the government of Jersey is engaging in a public virtual currency consultation process from July 9 to August 7.
With the participation of virtual currency and cryptography enthusiasts, the government of Jersey is set to publish the final consultation paper after all feedback and responses have been considered.
The document will focus on money laundering risks and terrorist financing risks associated with digital currencies and the possibility of using the blockchain technology to create a standard ledger of records for the island.
Unlike the report of FATF, the government of Jersey will devote a significant part of the document in explaining the potential applications of the blockchain, and its wide range of usages.
“The creation of a business-friendly framework that encourages innovation, jobs and growth in both the financial services and digital sector is a priority for the Government of Jersey,” the document reads. “Virtual Currency systems can be significant building blocks of a modern digital economy. This Consultation Paper highlights the most prominent money laundering and terrorist financing risks that the Government of Jersey believe are associated with virtual currencies in their current form.”
The document explicitly explains the benefits and the technology behind Ripple and its gateway system, and how the technology can be used to benefit the Island of Jersey.