Bitcoin Forum

A campaign has been launched to make Jersey a world leader in digital currencies.

Bitcoin payments are already accepted in a handful of places but an industry expert says, if the States allow banks to accept and trade with it, Jersey could become a magnet for new business.

Robbie Andrews, of bit.coin.je, an industry body set up to promote and campaign for the currency, wants to create a "Bitcoin Isle".

Treasury Minister Senator Philip Ozouf said he wanted Jersey to be an early leader in the field.

There have been issues around the digital currency, including a lack of regulation and concerns over potential for money laundering and other illegal activity.

In October 2013 the FBI shut down online marketplace Silk Road. The site traded in drugs and other illegal goods and took payments using "crypto-currencies" such as Bitcoin.

In December 2013, Fiona Le Poidevin, Chief Executive of Guernsey Finance, said the current lack of regulation was an area of concern.

She said the Bitcoin concept had become "increasingly familiar, but it is still in its infancy and this brings with it both challenges and opportunities".

Senator Ozouf said: "[This] is a sector that could hold significant opportunities for Jersey.

"Our infrastructure of world-class financial services and digital expertise gives us the tools to be an early leader in the field. Innovation will be central to Jersey's future prosperity.

"We are keen to support local businesses by helping to create a well-regulated and responsive environment for investment in the sector."

Early in 2014 the Chinese government said Bitcoin was not a currency and banned financial institutions from dealing with Bitcoin exchanges.

BBC chief business correspondent, Linda Yueh, said: "It is clear that regulators around the world are unsure about what to make of Bitcoin and are still in the process of making up their mind if and how it and other crypto-currencies should be regulated."

Mr Andrews said Bitcoin was vital to the future of Jersey's economy and would be used globally.

"In the same way email changed how we send files globally, Bitcoin will change how we transact our lives. It is a network you can use for payment that is global and not managed by one industry body."

He said he would like to see more places accept payment in digital currency.

"My plan would be that you get the bus and pay using your phone. You get the paper, you pay with your phone. And at no point do you constantly give people your credit card details."

Tiffin tearoom on St Helier's waterfront already accepts Bitcoin. Owner Giles Day said: "It is fast, reliable and a very secure payment method. It is the way of the future. It is what the digital and finance industry will be using and those two industries are key to Jersey.

"With a credit card, we get charged and it takes a while to get the money. We get Bitcoins into our account straight away, without any charges."

Mr Andrews said the next step would be Bitcoin banking, meaning workers would get paid in Bitcoins.

"That would require new legislation and the States need to act quickly if they want to capitalise on it," he said.

"At the moment there is a big push for a digital industry in Jersey to grow and if you asked any technologist what is the one technology that fits between technology and finance, it would be a crypto-currency like Bitcoin."

Source "http://www.bbc.com/news/world-europe-jersey-27921445"

Jersey is already a massive hub for businesses wanting to save on their tax bill. I could see the appeal to bitcoin businesses.

Has someone here registered a business in Jersey ? I'm looking for nearby countries ready to accept bitcoin business but for what i saw you need to have lived there for 5 years in order to open a business here...

short answer, yes. residents of jersey seem to be positive of bitcoin. and with me living in england makes me love it more.. nice short ferry journey

I have a business based in Jersey (thats Jersey the Island near England, not New Jersey USA to be clear  :) ).

It's pretty easy to use local professionals to setup businesses, but do not think that the money laundering/KYC rules are any different than for any other developed country ie cash/fx transactions require full disclosure of identity etc. The same will probably apply for Bitcoin there, unless it's just being used to buy goods etc.

Also most of the local banks are subsidiaries of major global banking groups (for obvious reasons), so they will be under scrutiny from their HQ as to the businesses they enter into. If they don't like Bitcoin at HQ they will ban all their subsidiaries as well. http://en.wikipedia.org/wiki/List_of_banks_in_Jersey

i dont mind the KYC stuff, but was looking for another account that was bitcoin friendly. all my business is legit, and current bank loves me. was just hoping jersey would be the answer if my bank changed its mind due to the emotional and irrational whim of their HQ...

It's great that Jersey embraces bitcoin in a smart way to boost its economy. But I think the anti money laundering/KYC rules are a bit excessive. Only an extremely tiny fraction of bitcoin buyers might be doing what's called money laundering. It's disproportionate to spy on everyone just to identify that tiny fraction. Humanity is better off without AML/KYC laws, because the damage these laws do to the whole economy/society is far greater than their use to fight crime.

ya.ya.yo!

the real funny part is that when doing a bank transfer, the banks have all the details of the account holders on both sides anyways. because people have to registered their life history when opening an account. yet services have to do it too lol.. kind of weird, as any query about bank transfers can be answered by the banks, and not have to concern the bitcoin exchanges one bit

EG lets say i moved fnds from my account to a jersey bitcoin exchange. and there was an investigation.. without even having to contact me or the jersey exchange, all the details of both me and the exchange can be found through our banks.. so no need for the jersey exchange to ask for that much info. all they have to do is the deposit/withdrawal limit stuff. and reverse a payment if it moved too much.

watch new jersey take away all the bitcoin businesses from new york which is close by

this topic is about the island of jersey, near britain.. not 'new jersey'... just jersey..

This could be great if they are able to make Jersey a magnet for business. With the way things are now anything that can help people get into the line of business and help themselves is always welcomed no matter where you go but if one small place in Britain can accomplish something like this it can then show others how easy it could be for them and how much they could achieve if more Bitcoin businesses were set up.

I agree. It would be great if this is perceived as an encouragement for other countries to join the bitcoin economy. Bitcoin is perfectly suited for small island nations with liberal regulatory climate. In general these nations already rely on the financial services industry, because it's their only chance to achieve some wealth as they often do not have exploitable resources and are too remote to establish a manufactoring industry.

I think there is a first-mover advantage, too.

ya.ya.yo!