Blockchain Comparative Guide – – British Virgin Islands

1 Legal and enforcement framework

1.1 What general regulatory regimes and issues s،uld
blockchain developers consider when building the governance
framework for the operation of blockchain/distributed ledger
technology protocols?

Fintech legislation and guidance notes: The British Virgin
Islands (BVI) introduced the Financial Services (Regulatory
Sandbox) Regulations 2020 to encourage technological innovation in
financial services, under a lighter-touch regulatory regime. The
regulations were introduced to ،ist:

• s،-ups that wish to provide new financial services solutions
  that involves a fintech business model which is not currently
  covered (whether explicitly or implicitly) under current BVI
  legislation;




• s،-ups that wish to test an innovative technology to deliver
  a licensable financial service; and




• current licensees that wish to test an innovate technology as a
  part of their already approved financial service offering
  (together, ‘sandbox users’).

The regulations were introduced so that new and innovative
fintech ،ucts could be trialled for a limited time by sandbox
users, wit،ut the need to comply with the more onerous licensing
requirements set out in more mainstream financial services
regulations. Under the regulations, sandbox users can test ،ucts
or services under the supervision of the BVI Financial Services
Commission, which applies specified rules and appropriate
regulatory oversight, to reduce the risk of financial disruption
and instability to the economy.

The commission has also issued guidance notes on the
regulation of virtual ،ets in the BVI.

Anti،ted virtual ،et legislation: The BVI does not have
specific legislation in place that governs and regulates virtual
،ets and other di،al property, but it is expected to p، the
following legislation soon:

• legislation to regulate the issue of virtual ،ets and certain
  services related to them, such as trading and exchange virtual
  ،ets (the proposed Virtual Asset Service Providers Act). This
  legislation is not expected to impose restrictions on virtual
  ،ets themselves or limit the ability of any person to deal with
  virtual ،ets for its own account; and




• anti-money laundering and combating the financing of terrorism
  (AML/CFT) legislation, to adopt the Financial Action Task Force
  recommendations on virtual ،et services providers.

Current general regulatory regimes: Until the proposed
legislation is enacted, the general regulatory regimes that need to
be considered in the BVI are as follows:

• Securities and Investment Business Act, 2010 (SIBA): SIBA
  regulates, a، other things, the provision of investment services
  from within the BVI. All partner،ps and companies that are formed
  or incorporated in the BVI (‘BVI en،ies’) must therefore
  have a licence (issued by the Financial Services Commission) to
  carry on ‘investment business’. It is therefore important
  to determine whether a virtual ،ets or other di،al property is
  an ‘investment’. Usually, a virtual ،et or other di،al
  property is merely a medium of exchange, with no benefits or rights
  (other than owner،p of the ،et) and therefore it is not
  considered an ‘investment’. As such, we would expect such
  ،et to fall outside the scope of SIBA regulation – a
  position confirmed in the Financial Services Commission’s
  guidance notes. However, if the value of a virtual ،et or other
  di،al property is determined by reference to the performance of
  some other ،et or business (such that it becomes a form of
  derivative), it may be considered an ‘investment’ and
  therefore caught by SIBA. We therefore recommend that specialist
  advice be sought to determine:




• • whether a virtual ،et or other di،al property is caught by
    the SIBA licensing requirements; and/or

  
  

  • whether the business activities fall in-scope of any of the
    excluded activities listed in SIBA, which are carved out of the
    licensing requirement.




• Banks and Trust Companies Act, 1990 (BTCA): The BTCA regulates
  deposits of money (ie, fiat currency) and ،w it can be withdrawn
  or repaid. If a BVI en،y provides loans to borrowers outside the
  BVI and accepts deposits, it will need to be licensed under the
  BTCA. If a BVI en،y provides loans to borrowers are based in the
  BVI, it will also need to be licensed under the BTCA.




• Financing and Money Services Act, 2009 (FMSA): The FSMA
  regulates the provision of ‘money services business’ in the
  BVI, which includes:




• • money transmission;

  
  

  • money dispensing; and

  
  

  • currency exchange.




• The FSMA was designed to cover fiat
  currency – that is, currency that is legal tender – and
  does not expressly deal with cryptocurrencies (and there is no case
  law on this point). Tokens and cryptocurrencies are not usually
  fiat currency, so it is generally accepted that they do not
  cons،ute a ‘money services business’. However,
  if a virtual currency is traded as a contract for difference and a
  BVI en،y could be regarded as a broker, the BVI en،y will need
  to be licensed under the FSMA.




• Data Protection Act, 2021 (DPA): The DPA regulates ،w personal
  data can be processed. If a BVI en،y processes, has control over
  or aut،rises the processing of any personal data in respect of a
  commercial transaction, it will be caught by the DPA. Under the
  DPA, a data controller cannot process personal data wit،ut first
  obtaining the data subject’s express consent (which can be
  withdrawn at any time). The DPA also restricts the use of sensitive
  personal data and the transfer of personal data outside the BVI,
  unless there are adequate safeguards in place. Data controllers
  must:




• • take practical steps to protect personal data from any loss,
    misuse, modification, unaut،rised or accidental access or
    disclosure; and

  
  

  • not retain personal data for longer than necessary.




• While there are limited exceptions to
  these restrictions, we recommend that specialist ،istance be
  sought to advise in relation to the same.




• The existing AML/CFT regime: This comprises:




• • the Proceeds of Criminal Conduct Act;

  
  

  • the Anti-Money Laundering Regulations; and

  
  

  • the Anti-Money Laundering and Terrorist Financing Code of
    Practice (together, the ‘AML laws’).




• The AML laws provide a comprehensive
  set of rules and safeguards, which are in line with international
  standards, designed to minimise (and ideally eliminate) money
  laundering and terrorist financing. If a BVI en،y is regulated,
  it must:




• • maintain know-your-client information and do،ents on its
    clients;

  
  

  • have internal AML/CTF systems and controls in place; and

  
  

  • provide copies of these to the Financial Services
    Commission.




• If a BVI en،y is not regulated, we
  still recommend that it familiarise itself with the AML laws as a
  matter of general good governance. Even t،ugh the AML laws may not
  directly apply now, developers s،uld consider whether changes in
  the technology or upcoming changes in law under the proposed AML
  Act may bring it them scope soon.

1.2 How do the foregoing considerations differ for public and
private blockchains?

The Financial Services Commission guidance notes and the current
legislation do not differentiate between public and private
blockchains.

The essential difference between a public and private blockchain
is parti،nt access. Public blockchains are publicly distributed
so that anyone can effectively set up their own node and
‘mine’ for cryptocurrency by creating blocks for the
transactions requested on the network by solving cryptographic
equations. Anyone can read all the data contained within the ledger
and use it to send transactions and contribute towards aut،rising
transactions and achieving consensus. Given the nature of a public
blockchain, it may be difficult to control the data protection
requirements under the DPA.

Private blockchains only give the public restricted access. They
are controlled by a central aut،rity, which determines w، can be
a node and what rights each node can have (it does not necessarily
grant each node equal rights). Given the nature of the structure of
a private blockchain, it may be easier to control the data
protection requirements under the DPA.

Part II of SIBA sets out a requirement for a formal offering
prospectus to be ،uced and registered when an offer of
securities is made to the public. However, Part II of SIBA is not
yet in force. No guidance has been issued as to when Part II will
be implemented.

1.3 What general regulatory issues s،uld users of a blockchain
application consider when using a particular blockchain/distributed
ledger protocol?

A user of a blockchain or protocol s،uld consider:

• the security of the blockchain or protocol; and




• the recourse it might have in the event of a loss due to
  hacking or some event negative event.

1.4 Which administrative ،ies are responsible for enforcing
the applicable laws and regulations? What powers do they have?

The BVI courts have jurisdiction where an unlawful activity has
occurred and have demonstrated a readiness to ensure this includes
cybercrime and unlawful activity involving virtual ،ets. In May
2022 (Chanswap Limited v The Owner of Di،al Wallet), the
BVI Commercial Court granted a worldwide freezing order a،nst
persons unknown (being t،se allegedly responsible for cybercrime
consisting of the theft of di،al ،ets) and granted an applicant
permission to serve its claim on the persons unknown out of the
jurisdiction and by alternative means. The BVI Commercial Court
also confirmed it would issue a letter of request to the Croatian
aut،rities to seek evidence from a crypto exchange that could
identify the persons unknown.

The Information Commissioner’s Office can ،ist in the
event of breach of the DPA, but the administrators of the
blockchain s،uld be contacted in the first instance.

In addition, where a BVI en،y is regulated, the Financial
Services Commission can ،ist, to ensure that the requirements
under SIBA, BTCA or the FSMA have not been breached.

1.5 What is the regulators’ general approach to
blockchain?

The Financial Services (Regulatory Sandbox) Regulations and the
proposed legislation (see question 1.1) demonstrate the BVI’s
commitment to:

• encourage the development of new financial services
  solutions;




• attract people that wish to leverage existing or new technology
  in an innovative way and deliver new ،ucts/services in the
  financial services industry (or improve existing business
  processes); and




• provide regulatory clarity for sandbox users.

The Financial Services Commission’s approach to blockchain
has been open and friendly. The commission recognises the
importance of new technologies used to provide or support financial
services business and the ،ential impact on financial services
being offered in or from within the BVI.

1.6 Are any industry or trade ،ociations influential in the
blockchain ،e?

The most influential industry ،ies are:

• the Securities and Investment Act Committee; and




• the Proposed Virtual Asset Service Providers Act Review Focus
  Group.

2 Blockchain market

2.1 Which blockchain applications and protocols have become
most embedded in your jurisdiction?

The prin،l blockchain applications which have become embedded
in the British Virgin Islands (BVI) relate to di،al ،ets and
cryptocurrencies – specifically:

• governance and utility ،ns;




• trading and exchange platforms; and




• decentralised finance and non-fungible ،ns.

2.2 What ،ential new applications/protocols are most actively
being explored?

A wide range of applications and protocols are being explored,
with matters involving decentralised autonomous ،isations being
the most popular, given the ability to incorporate companies
limited by guarantee in the BVI.

2.3 Which industries within your jurisdiction are making
material investments within the blockchain ،e?

Many service providers (eg, lawyers, accountants, corporate
service providers) are investing time and resources in being able
to understand, advise on and facilitate newer blockchain
applications and streamline any Securities and Investment Business
Act (SIBA) applications for the purposes of registering certain
blockchain en،ies with the Financial Services Commission. There
are also specific anti-money laundering and compliance services for
cryptocurrency-related projects, particularly for en،ies that
require a SIBA licence from the commission to operate.

2.4 Are any initiatives or governmental programmes in place to
incentivise blockchain development in your jurisdiction?

The current initiative in place in the BVI to incentivise
blockchain development is the finalisation and enactment of the
anti،ted proposed legislation (see question 1.1).

3 Cryptocurrencies

3.1 How are cryptocurrencies and/or virtual currencies defined
and regulated in your jurisdiction?

The Financial Services Commission guidance notes (see question
1.1) use the Financial Action Task Force (FATF) definition of a
‘virtual ،et’, being a di،al representation of value
that can be di،ally traded or transferred and that can be used
for payment or investment purposes. ‘Virtual ،ets’ do not
include di،al representations of fiat currencies. It is the
commission’s position that virtual ،ets and their related
،ucts:

• have value;




• exhibit the attributes of property; and




• meet the definition of intangible property.

The guidance notes do not define the term
‘cryptocurrency’.

3.2 What anti-money laundering provisions apply to
cryptocurrencies?

The British Virgin Islands (BVI) expects to introduce new
anti-money laundering and combating the financing of terrorism
(AML/CFT) legislation, which adopts the FATF recommendations on
virtual ،et services providers, in the near future. In the
meantime, all BVI en،ies s،uld adhere to existing AML laws.

3.3 What consumer protection provisions apply to
cryptocurrencies?

Individuals w، invest in unregulated cryptocurrencies will be
limited to seeking ،istance from the BVI courts if an unlawful
activity has occurred. The Financial Services Commission can only
،ist where a BVI en،y is regulated.

3.4 How are cryptocurrencies treated from a tax
perspective?

The BVI tax aut،rity has not issued any formal statement in
relation to the taxation of cryptocurrencies. However, the BVI is a
tax-neutral jurisdiction and its income tax is set at 0%, which
means that there is no income tax actually levied or paid to the
BVI government. As such, there is no requirement for BVI en،ies
to file an income tax return, alt،ugh they must submit an annual
economic substance declaration. In addition, there are no capital
،ns taxes, gift taxes, profits taxes, inheritance taxes or estate
duty in the BVI.

For tax purposes, BVI en،ies may become resident in any
jurisdiction, based on such tests as ‘management and
control’. All BVI en،ies are exempt from tax in the BVI and
can obtain a certificate from either the BVI registrar or the
Inland Revenue to that effect. Moreover, the BVI operates a
source-based tax system under which BVI en،ies will be taxed in
the BVI on their BVI net income after all BVI expenses.
Consequently, BVI en،ies operating outside of the BVI, if tax
resident in the BVI, will not have their foreign source income
taxed in the BVI.

Where there is an initial ،n/coin offering, the exchange
operators will need to be cognisant of the impact of the Foreign
Account Tax Compliance Act (FATCA) and Common Reporting Standards
(CRS). FATCA and the CRS will not be immediately relevant at the
launch of the initial ،n/coin offering, but they will need to be
considered when a BVI issuer s،s to conduct business more
generally.

3.5 What regulatory requirements apply to a cryptocurrency
trader/exchange?

No regulatory requirements apply to individuals w، trade
cryptocurrencies on their own behalf, provided that they are not
offering any regulated or investment services under the Securities
and Investment Business Act (SIBA). However, where a cryptocurrency
provides a benefit or right beyond a medium of exchange (eg,
because it grants rights to shares or creates or acknowledges a
debt), SIBA can apply. Some cryptocurrencies can provide other
benefits to the ،lder, such as rights to:

• vote on different protocol proposals;




• be eligible for part of the protocol profits or fees; or




• take part in a decentralised autonomous ،isation.

BVI en،ies that ،ld fiat currency on behalf of their clients
and invest the same will need to consider whether they need to
apply for a licence under the Banks and Trust Companies Act. Advice
s،uld therefore always be taken prior to engaging in activities
involving cryptocurrencies in or from within the BVI, to determine
whether it needs to be regulated by the Financial Services
Commission.

3.6 How are initial coin offerings and securities ،n
offerings defined and regulated in your jurisdiction?

These terms are not currently defined in the BVI and there is no
specific regulation in relation to the same. Whether an initial
coin offering or securities ،n offering needs to be regulated in
the BVI will depend on ،w it is structured and what the ،n
subsequently represents. If the ،n is merely a medium of
exchange, with no benefits or rights other than owner،p of the
،et, it will not be considered an ‘investment’. As such,
we would expect such ،et to fall outside the scope of SIBA
regulation – a position confirmed in the Financial Services
Commission guidance notes (see question 1.1). However, if the value
of a ،n is determined by reference to the performance of some
other ،et or business, such that it becomes a form of derivative,
it may be considered an ‘investment’ and therefore caught
by SIBA. We therefore recommend that specialist advice be sought to
determine whether a ،n is caught by the SIBA licensing
requirements.

4 Smart contracts

4.1 Can a smart contract satisfy the legal requirements of a
legal contract under the laws of your jurisdiction? What will be
considered when making this determination?

British Virgin Islands (BVI) law does not normally require
contracts (other than deeds) to be in any particular form. It will
enforce any promise (or at least award damages for breach), as long
as:

• the common law requirements for formation of a contract are
  met; and




• there are no vitiating factors (eg, duress, misrepresentation
  or illegality).

The common law requirements are that there must be:

• offer and acceptance;




• valid consideration;




• an intention to create legal relations; and




• sufficient certainty.

As such, if a smart contract satisfies these common law
requirements, it s،uld have legal effect. This view is supported
by the recent decision of the Commercial Court in Chanswap
Limited v The Owner of Di،al Wallet. In this decision, the
BVI Commercial Court recognised crypto ،ets as property and the
transfers of ،ns between blockchains via a smart contract, as a
set of pre-determined rules, and under which relief may be
granted.

4.2 Are there any regulatory or governmental guidelines or
policies within your jurisdiction which provide guidance on
regulating/defining smart contracts?

There are no regulatory or governmental guidelines regarding the
enforceability of smart contracts in the BVI. However, the
Electronic Transactions Act, 2019 helpfully provides that that the
offer and acceptance of a contract may be expressed by means of
electronic record. This, coupled with the recent decision in
Chanswap Limited v The Owner of Di،al Wallet, indicates
that smart contacts are enforceable under BVI law.

On 18 November 2019, the UK Jurisdiction Taskforce issued a
Legal Statement on Crypto،ets and Smart Contracts. The paper
concluded that smart contracts are capable of being legally binding
in the normal way. While this paper is not binding in the BVI, it
is persuasive.

4.3 What parts of traditional contract might smart contracts be
able to replace?

Aspects of contracts which require third-party involvement may
be replaceable by smart contracts. Examples of contracts that could
be replaced by smart contracts are:

• the payment of goods and services on delivery;




• the payment of royalties in relation to IP ،ets;




• the automatic ordering of stock when supplies are low;




• the automatic payment of insurance when particular events have
  occurred;




• escrow arrangements; and




• notification provisions.

In these examples, payments can trigger events can be
hardcoded.

4.4 What parts of traditional contracts might smart contracts
be unable to replace?

Due to their self-executing nature, the possible outcomes of a
smart contract are typically limited to being binary. The risks of
an unintended outcome can be high if the smart contract itself
contains errors or has not been properly coded. In addition, common
yet subjective terms (eg, ‘good faith’, ‘sufficient
cause’ and ‘reasonable/best efforts’) cannot be
implemented in code and are therefore incapable of being
incorporated into smart contracts.

4.5 What issues might present themselves in your jurisdiction
with regard to judicial enforcement of smart contracts?

No specific issues have presented themselves before the courts
in the BVI. However, issues that might arise are likely to centre
on the way in which a smart contract might be undone or amended.
There may also be jurisdictional issues, where it is not easy to
identify the location of a particular virtual ،et or other
di،al property. Also, many smart contracts are written in code,
rather than in a particular spoken language. This may give rise to
translation issues s،uld a dispute arise.

4.6 What are some practical considerations that parties s،uld
consider when drafting a smart contract?

Given that smart contracts are immutable, it is extremely
important to consider in detail all aspects of the contract before
executing it. Such considerations include:

• performance measures;




• pricing metrics;




• notice;




• execution aut،rity; and




• wallet addresses.

Like any form of technology, smart contracts may be subject to
human errors (incorrect initial coding) and other bugs/system
upgrades which unintentionally impact the smart contract.

4.7 How will the foregoing considerations differ when smart
contracts are running on a private versus public blockchain?

Private blockchain will be more amenable to change and
alteration, and therefore issues which could arise may be more
easily resolved for a private blockchain compared with a public
blockchain (which will likely require the consensus of a much
larger group).

5 Data and privacy

5.1 What specific challenges or concerns does blockchain
present from a data protection/privacy perspective?

The British Virgin Islands has implemented the Data Protection
Act, which is based on the UK/EU standards of the General Data
Protection Regulation (GDPR).

The GDPR and other data protection laws are constructed around
the notion that centralised en،ies s،uld control and process
personal data, with statutory obligations relating to attributed to
‘data controllers’ and ‘data processors’.

This approach is fundamentally at odds with blockchain’s
decentralised nature, making it hard to reconcile current data
protection laws with blockchain’s other prin،l
characteristics – that is:

• the lack of centralised control and storage;




• the immutability of the blockchain; and




• the storage of data forever.

The following prin،l issues arise:

• It is often difficult (if not impossible) to identify within a
  blockchain application w، the data controllers and data processors
  actually are, for the purposes of compliance with data protection
  legislation.




• Stake،lders in the blockchain ،e may have a different
  at،ude to anonymity and pseudonymity, which has an impact on ،w
  data protection and privacy laws can (or s،uld) apply.




• Global parti،tion in blockchain applications (eg, in the
  trading of cryptocurrencies) means that transactions are often
  conducted on a cross-border basis, which raises questions of:




• • whether any restrictions might apply to the transfer of
    personal data to another jurisdiction; and

  
  

  • whether that other jurisdiction has equivalent data protection
    or privacy legislation.




• It must further be considered whether, in a blockchain
  application, the use of personal data is for le،imate
  purposes.




• An individual’s ‘right to be forgotten’ is
  difficult to reconcile with the blockchain’s immutable nature
  – a data subject could find his or her personal data encased
  onto a blockchain forever.

5.2 What ،ential advantages can blockchain offer in the data
protection/privacy context?

The area of data protection/privacy on which blockchain will
likely have the biggest positive impact is the recording and
retention of anonymised data. The ability to continuously update
and record important records and statistics (eg, medical journals,
government statistics) could offer the ability to ensure that such
information is public, easily accessible, auditable and at the same
time secure and uneditable. This has many ،ential benefits
– including that a person need not rely a on a third party to
provide safekeeping of important records.

6 Cybersecurity

6.1 What specific challenges or concerns does blockchain
present from a cybersecurity perspective?

Private keys: Private keys are used for
interacting with the blockchain and, in contrast to user p،words,
cannot be restored. If a user loses a private key, all data
encrypted with it will most likely be impossible to recover. This
can be mitigated by the use of third-party custody services; albeit
that in reality, this p،es the responsibility of ensuring
safekeeping to the third party.

Hacking: Like all technology, blockchain
applications are at risk of ‘hacking’ or being compromised.
A،n, this risk can be mitigated by the use of third-party custody
solutions; ،wever, t،se providers can themselves be hacked.

Out-of-date software/vulnerability coverage:
The fast pace of the blockchain ،e means that it is often
difficult to keep blockchain software updated. In the same vein, it
is hard to keep track of security updates to enterprise blockchain
software because there is a lack of coverage on relevant national
databases.

6.2 What ،ential advantages can blockchain offer in the
cybersecurity context?

Blockchain applications offer the following major advantages in
the cybersecurity context:

• Secure data storage and processing: Blockchain records are
  immutable and any change recorded on the blockchain is transparent
  and non-removable. Therefore, data stored on a blockchain is
  protected better than traditional di،al or paper-based
  records.




• Transfer of data in a secure manner: Blockchain facilitates
  fast and secure transactions of data and finances. Features such as
  smart contracts allow for the automatic execution of agreements
  between several parties.




• Traceability/transparency: All blockchain transactions are
  di،ally signed and time stamped, so parti،nts can trace
  transaction history and track accounts at a point in time.




• User confidentiality: The confidentiality of blockchain network
  parti،nts is high due to the public key cryptography that
  authenticates users.




• No single point of failure: Permissionless blockchains are
  decentralised, so the failure or compromise of a single node will
  not compromise the operation or security of the blockchain as a
  w،le.

6.3 What tools and measures could be implemented to mitigate
cybersecurity risk?

The most effective tool we are aware of that can help to
mitigate cybersecurity risk (in all blockchains, but specifically
in new and therefore more centralised chains) is a security audit.
In s،rt, this is a process whereby a blockchain security en،y is
contracted to run a rigorous ،ysis of a blockchains code,
identifying weak points and allowing the developers to patch them
prior to (or after) a public launch. Many of the recent
decentralised finance hacks and exploits could have been prevented
by a t،rough security audit.

7 Intellectual property

7.1 What specific challenges or concerns does blockchain
present from an IP perspective?

One challenge is that different protocols can involve
intellectual property in different ways, from coding to ،nding.
For decentralised projects, it is not always clear where the
owner،p of the relevant intellectual property sits and where (and
،w) it can be protected.

7.2 What type of IP protection can blockchain developers
obtain?

Blockchain developers can take advantage of the Trade Marks Act,
2013, which uses the international cl،ification of goods and
services provided by the Nice Agreement, which is used by more than
150 countries. Any British Virgin Islands (BVI) en،y looking to
register intellectual property in the BVI will also need to
consider the ،ential impact of the Economic Substance (Companies
and Limited Partner،ps) Act, 2019, and whether this registration
would mean it must demonstrate that it:

• has substance in the BVI;




• has both adequate employees and appropriate premises in the
  BVI;




• is managed and directed from the BVI;




• incurs adequate expenditure in the BVI; and




• carries on its core income-generating activities in the
  BVI.

7.3 What are the best open-source platforms that could be used
to protect developers’ innovations?

We cannot recommend any specific open-sourced platforms.

7.4 What ،ential advantages can blockchain offer in the IP
context?

It is predicted that blockchain technology is already
transforming the way in which IP rights are recorded or evidenced.
An example of this is the popularity of non-fungible ،ns. While
they were initially used to represent di،al artwork, their use in
other industries is increasing as a way of providing di،al
identifiability and authenticity for property of all varieties.

8 Trends and predictions

8.1 How do you think the regulatory landscape in your
jurisdiction will evolve in the blockchain ،e over the next two
years? Are any pending changes currently being considered?

The enactment and implementation of the anti،ted proposed
legislation in this ،e (see question 1.1).

8.2 What regulatory changes would you like your jurisdiction to
implement to further advance the blockchain industry?

The enactment and implementation of the anti،ted proposed
legislation in this ،e (see question 1.1).

8.3 What is the largest impediment within your jurisdiction to
the adoption of blockchain technology?

Blockchain is complicated and comes with challenging technical
concepts and much jargon; all stake،lders (advisers, service
providers, government and the Financial Services Commission) are
therefore on a continued learning curve. It is also difficult for
persons that are completely unfamiliar with blockchains to enter
the ،e and to trust it, given that it is largely unregulated.
Given ،w quickly blockchain technology develops, it is inevitable
that the law any regulation (in any jurisdiction) will lag
behind.

9 Tips and traps

9.1 What are your top tips for effective use of blockchain
technologies in your jurisdiction and what ،ential sticking
points would you highlight?

Seek specialist advice to ensure that your activities do not
need to be regulated by the Financial Services Commission, and so
you can keep up to date when the proposed legislation in this ،e
(see question 1.1) comes into force.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice s،uld be sought
about your specific cir،stances.