Jersey has ‘good opportunity’ to become a crypto hub

Jersey has a “good opportunity” to become a major centre for crypto technology, according to a specialist in digital currency.

Nathan de la Haye, 26, founder of BlockWise, said the island’s financial services industry and its clear regulatory guidelines made it an ideal place for crypto businesses.

But he also said he believed local companies needed to change their perspective to take advantage of digital currency.

He said: “A lot of people think it’s just a get-rich-quick scheme, and don’t really treat it seriously.”

Mr de la Haye explained that companies in Jersey could be cautious about the price volatility of cryptocurrencies.

But he said: “The size of the industry means you can’t really ignore it any more”.

The global cryptocurrency market cap is more than $4.2 trillion, according to cryptocurrency market data platform CoinMarketCap.

Mr de la Haye explained that the Jersey Financial Services Commission (JFSC) was open to adopting cryptocurrencies and had provided clear guidance for businesses.

“They recognise the potential that this technology can have, so they have put the framework in place,” he added.

In 2014, the JFSC approved the world’s first regulated Bitcoin investment fund, GABI Plc.

Finance industry leader Jason Laity said this was certainly “a sign of a progressive regulatory environment”.

However, he stressed that the “regulator must tread a fine line” between supporting crypto and making sure the island’s reputation remained intact.

He said that the island’s reputation was “massively important for the financial services industry” and any emerging fast pace sector needed to be carefully regulated.

Mr de la Haye founded BlockWise to consult with businesses in Jersey on crypto technology.

He launched his company with the help of Digital Jersey’s Tech Start Up Bootcamp.

“Having more companies creating new financial products and services related to blockchain and cryptocurrency would be really exciting,” he said.

Mr Laity said there was certainly a lot of activity in Jersey, so there was no reason why the number of cryptocurrency start-ups could not increase.