Guernsey’s Evolving Digital Asset Funds Landscape

Authored by Ian Horswell, Head of Business Development - EMEA & APAC

The statement from the Guernsey Financial Services Commission (GFSC) last month (9th June) marks a notable step forward in the Island’s approach to digital assets, providing some welcome clarity for promoters of digital assets fund products. 

While the GFSC has made it clear that it remains cautious with regard to Virtual Asset Service Providers (VASPs) or token issuance structures, its acknowledgement that investment in digital assets is ‘entering a more mature period’ and its willingness to accommodate digital assets within certain private wealth and fund structures and contexts demonstrates a pragmatic and forward-looking stance.

Crucially, the GFSC’s more flexible approach strikes a balance between innovation and investor protection. Helpfully, the statement outlines a number of criteria that digital asset businesses should consider in establishing a Guernsey vehicle – including mechanisms to ensure that retail investors receive professional advice and detailed consideration of compliance monitoring plans, testing and risk management processes. 

By focusing on established structures, such as private investment funds and family office arrangements, and on ensuring that investors are ‘well informed’, Guernsey is positioning itself as a progressive jurisdiction that is able to support the growth of digital finance while maintaining its reputation for regulatory integrity.

At Suntera, we welcome this development and view this as an exciting opportunity for Guernsey to reinforce its position as a credible and well-regulated jurisdiction for institutional-grade digital asset strategies, particularly in the context of private wealth and fund vehicles. 

Our specialists, both in Guernsey and across our global network, are highly experienced in the complexity that comes with setting up and growing a digital, blockchain or fintech fund, balancing responsible business practices with a shared ambition for a more technologically-empowered world. 

Suntera has a proven track record working with clients to navigate the complexities across the digital asset ecosystem, including fund administration, governance, and compliance services. While Guernsey may not currently accommodate the full spectrum of virtual asset structures, our team of global experts is able to seamlessly support clients in what is a rapidly evolving space, wherever their investment strategy takes them.

Alongside the ongoing growth in the global digital assets market, this is a major step forward for Guernsey. We look forward to continuing to work with clients and partners to explore the jurisdiction’s evolving regulatory landscape to support the next generation of alternative investment.

To learn more about our bespoke fund services for the digital sector visit our digital funds overview page or speak with one of our experts by completing the form below.