For those that still have not seen this
Some infos I have gathered regarding: GABI (Global Advisors Bitcoin Investment Fund) for anyone that may not have seen it.
ANNOUNCEMENT FROM JERSEY GOVhttp://www.gov.je/News/2014/Pages/CryptoCurrency.aspx
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The Assistant Chief Minister with responsibility for financial services, Senator Philip Ozouf, has commented on the announcement by a Jersey-based investment management company that it has received approval to launch a Jersey-regulated Bitcoin investment fund.
Senator Ozouf's statement
Senator Ozouf said "This is believed to be the first regulated Bitcoin fund in operation and Jersey is pleased to be paving the way. Fintech, which broadly defines the emerging digital industry in finance, is a sector that I believe holds significant opportunities for Jersey. In April this year, when I presented the Government’s policy framework for the future of our financial services industry, I made it clear that innovation will be central to Jersey’s future prosperity. I also emphasised that Government will offer its full support for innovative measures undertaken by industry and the regulator.
“I therefore welcome the decision of the Jersey Financial Services Commission to approve the launch of the Island’s first regulated Bitcoin fund. We are working closely with the Commission, industry and Digital Jersey to help develop the Island as a natural hub for fintech business. We are committed to maximising the benefits and opportunities of cryptocurrencies like Bitcoin in a well-regulated environment.”
Cryptocurrency overview
Cryptocurrencies are fundamentally a software code or chain of digital signatures that define units of value. No transfer of any physical money or digital file takes place at the point of transaction as with traditional core currency transactions.
The most notable difference between crypto currencies and core currencies is that no group or individual may accelerate, stunt or in any other way significantly moderate (or abuse) the production of money. Most crypto currencies are designed to gradually introduce new units of currency, placing an ultimate cap on the total amount of currency that will ever be in circulation. This is done both to mimic the scarcity (and value) of precious metals and to avoid hyperinflation.
One of the commonly known cryptocurrencies is ‘Bitcoin’. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created Bitcoins. Bitcoins are now actively obtained in exchange for core money, products, and services.
The popularity of cryptocurrencies, particularly Bitcoin, has increased significantly as a tool of trade and more recently as an asset class for expert investors.
Regulation
Jersey has consistently taken a proactive approach in advancing the worldwide fight against money laundering and financing of terrorism. In the area of cryptocurrencies, this approach will not change. Jersey is committed to introducing an appropriate and proportionate anti-money laundering regime in this area.
Given that the use of cryptocurrencies has evolved at such a rapid pace, and that the user and business acceptance is sharply growing, the Government and the Jersey Financial Services Commission are of the view that an in-depth analysis of the risks posed by crypto-currency needs to be carried out before an appropriate and proportionate anti-money laundering regime can be introduced.
The analysis of the risks associated with crypto-currency is underway and it is anticipated that the Financial Crime Strategy Group, who make recommendations to the Government on financial crime matters, will be in a position to advise Ministers by the end of 2014.
Tax implications
Any business or individual receiving an income from any activity involving Bitcoin and other similar cryptocurrencies will need to consider the income tax and GST implications.
In general terms, the Comptroller of Taxes has issued the following guidance
the profits and losses of a business entering into transactions involving cryptocurrencies would be reflected in the accounts and would be taxable under normal Jersey income tax provisions relating to foreign exchange.
with regard to GST, the value of the supply of goods or services on which GST is due will be the sterling value of the cryptocurrency at the point the transaction takes place.
Local cryptocurrency use
The use of cryptocurrencies locally is gathering momentum with a growing number of retailers currently accepting payment in Bitcoin. As such, Trading Standards have published new guidance for retailers accepting cryptocurrencies for consumer transactions.
(Global Advisors Jersey Limited) Daniel Masters (
http://www.linkedin.com/pub/daniel-masters/8/939/197)
Co-Principal and Portfolio Manager
Director of Trading & Execution
Daniel Masters started out in 1985 at Royal Dutch/Shell, where he was responsible for managing a portfolio of North Sea Crude. Moving to The Phibro Energy Division of Salomon, Inc. in 1987, he pioneered the firm’s entrance into the electricity markets. He structured groundbreaking natural gas deals and was an original participant in the “Contract for Difference” (CFD) market for physical oil in Europe. J.P. Morgan hired him in 1993 to add trading expertise to its array of financial capabilities. Based on Danny’s success in establishing a proprietary trading program, Morgan promoted him to head its global energy trading business in 1997.
Russell Newton(
uk.linkedin.com/pub/rus-newton/0/419/371)
Co-Principal and Portfolio Manager
Director of Systematic Model Research & Development
Russell Newton began his career as a crude oil trader for Royal Dutch/Shell in 1986. As head of Shell’s futures and forwards trading, he was one of the original developers of pricing models for the Brent CFD market. Rus also worked for The Phibro Energy Division of Salomon, Inc. and Rhein Oel Limited before joining J.P. Morgan in 1993. At Morgan, he served as global commodities strategist, covering base and precious metals as well as energy. He developed a new derivative trade structures and new techniques for researching, analyzing and modeling markets.
J Mognetti(
uk.linkedin.com/in/jmmognetti)
Mr Mognetti is a director and shareholder of Global Advisors (Jersey) Limited. Mr. Mognetti is registered with the National Futures Association (NFA) as a Principal, an Associated Person , and a National Futures Association (NFA) associated member of Global Advisors (Jersey) Limited and is also approved as a Key Person of Global Advisors (Jersey) Limited by the Jersey Financial Services Commission (JFSC).
Global Investment Bitcoin Investment Fund Ground Floor Liberation House Castle Street St Helier Jersey JE2 3AT
http://www.globaladvisors.co.uk/The Company seeks to achieve capital appreciation through direct and indirect exposure to Bitcoins and Bitcoin related markets.
If profitable opportunities arise, the Company will also invest in certain other commodity markets, including precious metals, oil and other forms of money (such as FX) as required to meet its investment goals whilst enhancing the Company’s ability to manage its liquidity requirementsIntro video if you have not seen it =
https://www.youtube.com/watch?v=OMN03xti4pkPartnersCarey Olsen as legal advisers led by James Mulholland -
http://www.careyolsen.com/locations/jersey/Moore Management as fund administrator
http://www.mooremanagement.com/Netagio and Elliptic as providers of custody services to strengthen and enhance our fund offering.
https://secure.netagio.com/ Netagio. The first British Bitcoin, gold & sterling exchange.
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https://www.elliptic.co/ Company formation and registration details https://www.jerseyfsc.org/registry/documentsearch/NameDetail.aspx?Id=297268
The fund will operate within the Collective Investment Funds (Jersey) Law 1998 as an Expert Fund.of which you can find a copy here =
http://www.jerseyfsc.org/pdf/schedule_2_codes_for_certified_funds_august_2011.pdf
........Interestingly enough the company that I used to work for who are based in Jersey, who have since merged and then morphed and changed names several times.. was most likely involved in advising the government (and others) in writing the Collective Investment Funds (Jersey) Law 1998, and I also worked at the same company as one of the other members of the team at GABI ,one of the non exec directors, albeit I never met the guy from memory.... ..small world
Edit: actually the same company also advised quite a few other governments too over the years in various aspects of Taxation law and Financial and International Finance law/International law and the like, they get around, highly respected in their field and everything they touched was solid as a rock
....huh really small world... looking around I see 6 or 7 people from
one company I worked for (Jersey/London based) are now working in and with Bitcoin related businesses, even one guy working for one of the GABI partners.
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