Proceeds of Crime
(Supervisory Bodies) (Virtual Currency Exchange Business) (Exemption) (Jersey)
Order 2016
1 Interpretation
(1) In this Order, unless
otherwise indicated or required by the context –
“calendar year” means a year beginning on 1st January
and ending on the following 31st December;
“currency” means money other than virtual currency,
whether in the form of cash or any negotiable instrument;
“Law” means the Proceeds of Crime (Supervisory Bodies) (Jersey)
Law 2008;
“turnover” has the meaning given by paragraph (2);
“virtual currency” has the meaning given by the Proceeds of Crime (Jersey) Law 1999; and
“virtual currency exchange business” means a business of
the kind described in paragraph 9 of Part B of Schedule 2 to the
Proceeds of Crime (Jersey)
Law 1999.
(2) For the purposes of
this Order “turnover”, in relation to a virtual currency exchange
business carried on by a person, means the cumulative total, during a calendar
year, of currency –
(a) that
is, in the course of the person’s carrying on that business, bought from,
or sold to, customers of the business in exchange for virtual currency; and
(b) measured
in sterling in accordance with generally accepted accounting principles.
2 Conditions
of exemption (turnover less than specified amount)
(1) A person who carries on
virtual currency exchange business is a person prescribed for the purposes of
Article 10(2)(a)(ii) of the Law, provided that the person notifies the
supervisory body –
(a) that
the person intends to carry on, or is carrying on, virtual currency exchange
business; and
(b) that
the turnover of that business as calculated by the person in accordance with
Article 1(2) –
(i) in the calendar
year immediately preceding the notification (the “current year”),
is less than £150,000, and
(ii) in
each complete calendar year preceding the current year (if any), was less than
£150,000; and
(c) of
the amount of turnover.
(2) The disapplication of
the Law by virtue of this Article and Article 10(2) of the Law is subject to the restrictions for which
further provision is made by Article 3.
(3) A person shall, within
the period of 3 months beginning with the day on which the person ceases
to carry on the virtual currency exchange business of which notification was
given under paragraph (1), notify the supervisory body of that fact and of
the date of such cessation.
(4) A person who
has –
(a) given
notification under paragraph (1); but
(b) decided
not to commence the virtual currency exchange business to which the
notification relates,
shall, within the period of 3 months beginning with the day on
which the decision was taken, notify the supervisory body of that decision and
of the date of the decision.
(5) A person who has given
notification under paragraph (1) shall continue to be a person prescribed
as provided in that paragraph, if and for so long as the person further
notifies the supervisory body –
(a) of
the amount of turnover in each calendar year, being less than £150,000;
(b) no
later than 31st March in the year immediately following the calendar year in
respect of which the further notification is given.
3 Restrictions
on exemption
(1) The exemption conferred
by Article 2 is restricted to Part 3 (apart from Article 10(2))
and Part 4 of the Law.
(2) Parts 1, 2, 5 and
6 of the Law shall continue to apply in relation to a person prescribed under
Article 2(1) (with all necessary modifications) as they apply in relation
to a registered person, or to a regulated person, as the case may be.
4 Transitional
provisions
(1) Notwithstanding Article 2(1)(b)
and (3), a person shall not be taken to have committed any offence under
Article 10(4) of the Law for a period of 3 months beginning with the
day on which the turnover of the person’s virtual currency exchange
business, in the calendar year immediately preceding that day is or exceeds
£150,000.
(2) If, within the period
of 3 months mentioned in paragraph (1), a person to whom that
paragraph applies makes an application to the supervisory body for registration
under the Law, the person shall not be taken to have committed any offence
under Article 10(4) of the Law until on or after –
(a) the
day on which the application is finally determined (including as a result of an
appeal to the Court under Article 19 of the Law) or is withdrawn; or
(b) in
the event that the application is refused, such later date as may be specified
by the supervisory body or the Court.
5 Citation
This Order may be cited as the Proceeds of Crime (Supervisory
Bodies) (Virtual Currency Exchange Business) (Exemption) (Jersey)
Order 2016.