Why Jersey? MoonPay and Carey Olsen Discuss

As MoonPay has grown, so too have the regulatory requirements of the digital asset sector. Established in 2019, the global crypto payments business has seen its services increasingly resemble traditional financial services and become regulated accordingly.

MoonPay wanted to establish a Virtual Asset Service Provider (VASP) in a European time zone, but outside the EU. Having already experienced regulatory application processes across a number of markets, the business was looking for a jurisdiction with a respected financial services regulator that was also willing to engage with new technologies.

After considering a number of jurisdictions, MoonPay chose Jersey and established a local entity, securing its VASP registration with the Jersey Financial Services Commission (JFSC).

Rather than building a local team from the outset, MoonPay appointed Jersey-based Oak Group to provide local directors and compliance support. This allowed the business to establish its operation efficiently while assessing its longer-term staffing requirements as its Jersey activities develop.

Jersey’s established financial services environment, together with the JFSC’s willingness to engage with digital asset businesses, were important factors in MoonPay’s decision.

In particular, MoonPay identified the JFSC’s existing guidance on tokenised real-world assets and ICOs, alongside its experience with innovative digital asset projects, when assessing Jersey against other jurisdictions. The ability to access Jersey’s existing network of regulated professional services providers also provided MoonPay with the flexibility to establish a local presence without the need to recruit a full team immediately.