The Bailiwick of Jersey has launched a consultation process to assess the risks and advantages of establishing a framework to regulate virtual currencies, as it looks to tap into the financial technology (fintech) market.

The consultation runs from July 9th to August 7th, and largely focuses around potential misuses of such currencies. Jersey says that while it is keen to embrace the potential offered by virtual currencies, it is also wary of the need to properly regulate the sector to tackle issues such as money laundering and the financing of terrorism.

“Should virtual currencies accomplish the necessary levels of user acceptance and market penetration in the future, both legitimate and nefarious users may achieve full independence in acquiring, transferring and spending virtual currencies within the virtual economy,” the consultation paper explains.

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