Fintech Why Jersey?
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Fintech Why Jersey? Jersey: Shaping fintech1 Jersey - A History of Jersey for Fintech Growth and Innovation at a Glance Benefits Jersey’s history and culture has resulted in a highly sophisticated community, open to every challenge and opportunity. World-Class Finance Situated only a short distance from the coast of Industry northern France, Jersey is the largest of the Channel Islands and shares a central time zone with the UK, spanning the business day from India and China to the US. Although Jersey is a British Crown Dependency, Digital Expertise and it is not a part of the United Kingdom nor is it Infrastructure represented in the British Houses of Parliament. The Island’s domestic autonomy has been preserved through charter and convention over 800 years of English history. Investment in Fibre As a result of Jersey’s unbroken constitutional position, Connectivity New York Jersey Shanghai the Island proudly possesses its own democratically elected parliament, the Government of Jersey, which has consistently maintained responsibility for domestic affairs including fiscal matters. These unique attributes add to the Island’s reputation Time Zone as one of the world’s leading international finance and Language Jersey: centres. Throughout its history, Jersey has embraced economic opportunities and has shown a consistent track record of successful innovation. With its World-Class Strong expertise as a finance centre, it was quick to Data Centres recognise the opportunities presented by fintech and has developed an attractive proposition for innovative startups and established businesses alike. As a Foundations result, Jersey has become a hub for successful fintech enterprises, a few of which are highlighted here. Strong Digital The efficient scale and accessibility of Jersey’s Skills Base The combination of Jersey’s strengths in the independent government means that it is able to financial sector, its pro-business environment listen to industry and move rapidly in the Island’s best interests. Its independence and small size gives and its growing digital sector positions the Island it ‘first-mover’ advantage in introducing forward- as the ideal jurisdiction for investors, startups looking financial legislation quickly. This is already Pro-Business Government and established businesses working in fintech. a major factor in the success of Jersey’s finance and Regulator industry and is proving beneficial for the digital sector. Legislative innovation and responsiveness are just two of the key attractions for fintech businesses Extensive looking to either set up operations in Jersey, or use Telecommunications the jurisdiction as a testbed for new products. Network 2 Jersey: Shaping fintech Jersey: Shaping fintech 3 Constantly Evolving Jersey’s Professional and Innovating Services Network Jersey is one of the first jurisdictions to adopt Jersey boasts numerous professional service a regulatory regime for virtual currency. providers who can offer support to fintech The regulation provides a threshold test businesses. The professional services network that exempts start-ups involved in virtual in Jersey includes: currency exchange from paying fees to the Jersey Financial Services Commission (JFSC) All Major Accountancy for regulation, until they reach a specified Firms turnover threshold. This means that while these businesses have to register and comply with the KYC/AML handbook, there is sufficient room for innovation with minimal 32 regulatory costs. Bank Licenses As at December 2015 st Regulated1 Bitcoin Fund Global Advisors Bitcoin people employed in Investment Fund became + the world’s first regulator digital industries approved Bitcoin Investment 2,250 Fund in July 2014 As at January 2016 + st 13,000 Unmanned1 Smart Finance Industry Issuance Kiosk Professionals As at December 2015 Atam holdings allows real-time, unmanned issuance of Credit, Debit, Prepaid and ID card products Jersey’s 1ST st to1 Introduce Limited International Finance Centre Liability Partnerships of7 Foundations Years Jersey is one of the world’s leading international finance centres. A solution to a gap identified Reliability, political and economic stability, and a sophisticated in wealth management services whereby civil law jurisdictions th and comprehensive infrastructure of laws have kept Jersey at the were unfamiliar with the 30 forefront of global finance for more than 50 years. concept of trusts Anniversary Trust Law The wealth of experience and expertise offered by Jersey’s Celebrated highly-skilled financial service providers, combined with a The first of its kind and a template world-class infrastructure and flexible approach, gives an for many other jurisdictions unparalleled welcome to fintech businesses and investors alike. 2014 Securities Interest Law Received Global First Tier Legal Innovation Award 5 Practices 4 Jersey: Shaping fintech Jersey: Shaping fintech 5 Digital Jersey Investment Digital Jersey was established to act as an in Fibre Connectivity accelerator, working alongside government and the private sector in coordinating The Gigabit Jersey project is bringing fibre activities that improve Jersey’s ‘digital connectivity to every Island home and ecosystem’. The government-funded business, transforming Jersey and providing development agency’s main aim is to facilitate businesses with the ideal test environment for growth of the digital sector, increasing its high-bandwidth services. value to the Island whilst creating more This connectivity is set to place Jersey at the employment opportunities. Digital Jersey forefront of the global digital ecosystem, voices and supports a community of generating significant opportunities for stakeholders’ visions for the digital sector fintech business. Today, even before through skills development, technical completion, Jersey consistently scores in the innovation and research, financing, incentives, global top 10 consumer download speeds on infrastructure and involvement in eGov. It the Ookla index. also helps existing local digital companies and start-ups flourish while demonstrating advantages of Jersey to new technology Extensive businesses. Telecommunications Network The Digital Hub World-class, resilient, high-speed and The Digital Hub, located in the heart of St high-bandwidth communication links with Helier, provides a co-working space and tools both the UK and France allow the Island to for young businesses to grow and develop operate beyond its borders and fully integrate their ideas. The dynamic, vibrant hub is used with the global market economy. Jersey by a multitude of businesses, from small fintech startups to more established digital Jersey is one of the best connected mobile data jurisdictions in the world, with the launch Digital Expertise and Mobile firms. For those new to Jersey, it provides growth space or can be a stop-gap whilst of 4G. Subscriptions Infrastructure for Fintech they get settled. It is also proving to be a very 118 subscribers per 100 effective way to connect with the local digital inhabitants* Businesses community. Data Hosting Jersey data centres are world-class and used Developing Digital Talent by global brands, multinational banks and Jersey has developed a thriving digital sector. online e-tailers. This has included the establishment of a representative body, Digital Jersey, as well as investment in strategic The Island has a strong digital skills base, The Island’s five state of the art data centres infrastructure projects. with tech firms in an array of sectors. The offer: Broadband Digital Hub has played host to hackathons n Adherence to ISO27001 and PCI security Penetration Rate showcasing the local talent, which have standards is 87% per 100 led to the development of new innovative n households* applications. Resilient and virtually unlimited transit Jersey is committed to nurturing digital talent capacity off Island n so that businesses can continue to recruit Cloud services and DDoS protection skilled and dedicated staff. solutions n The Digital Hub is at the centre of this Physical data security commitment, hosting regular skills n workshops, networking events and also acting A safe location due to Jersey’s geopolitical as the base for a mentoring programme. This stability and amenable weather conditions provides entrepreneurs and startups with the ability to seek guidance from industry experts to ensure their ideas are successful. *Circa Telecommunications Statistics Market Report 2014 6 Jersey: Shaping fintech Jersey: Shaping fintech 7 Forward Thinking “Jersey rightly prides itself on being among the top tier of jurisdictions The scale and accessibility of Jersey’s when it comes to compliance and has independent government allows it to proven many times that innovation in respond swiftly to industry requirements. new financial products and the highest As mentioned, the ability to quickly enact regulatory standards are not mutually legislation is a major factor in the finance exclusive.” industry’s success and is proving to be a Daniel Masters, Director of GAJL valuable asset for the digital sector. Combined with the proactive outlook of the JFSC, this has created a perfect testbed environment for fintech businesses, without compromising the jurisdiction’s robust regulatory regime and compliance with international standards. Case Study Emerging financial products and ever-increasing regulatory requirements The World’s First Regulated have brought a new focus on opportunities Bitcoin Fund and demands for fintech solutions. Jersey offers an ideal