The Guernsey Financial Services Commission (GFSC) considers a virtual asset service provider (VASP) activity high risk. Its rationale for regulating VASPs is to ensure that anyone carrying out such activities by way of business in or from within the Bailiwick or by a Bailiwick body is properly regulated for the purposes of anti-money laundering and countering the financing of terrorism.
A VASP must have a licence under Part III of the LCF Law (a Part III licence), unless an exemption applies.
The following persons do not require a Part III licence:
those who make investments, hold, or trade, in virtual assets for their own benefit;
licensees under the local regulatory laws providing administration or management services to VASPs which either hold a Part III licence or who are otherwise exempt; or
authorised or registered collective investment schemes investing, holding, or trading in virtual assets.
For a full list of the exemptions please see the GFSC's LCF Disapplication Note.