Guernsey regulator removes retail restriction on virtual asset service providers from 1 Oct 2026
Rules made on 9 Sep 2026 also delete a VASP-only environmental declaration and the rule that licensed firms doing virtual asset activity must always hold a separate VASP licence.
- Effective date
Summary
- GFSC removes retail restriction on VASPs from 1 Oct 2026
- Licensed firms will not always need a separate VASP licence
- Rules also delete the VASP-only environmental declaration
- July 2026 paper: retail-facing virtual asset licensees to notify GFSC
- GFSC expects stablecoin framework rules by the end of 2026
What happened
The Guernsey Financial Services Commission (GFSC) announced on 17 Sep 2026 that it has made the Lending, Credit and Finance (Amendment) Rules, 2026. The rules, made on 9 Sep 2026, are final and come into force on 1 Oct 2026.
The rules amend Part 10 of the Lending, Credit and Finance Rules, 2023, which covers Part III virtual asset service provider (VASP) licences. The Commission proposed the changes in a December 2025 consultation and confirmed them in a July 2026 feedback paper.
What changed
The rules delete three provisions:
- Rule 10.2(1), under which Part III VASP licensees were "only permitted to provide VASP services to institutional and wholesale counterparties". The Commission calls this "the blanket restriction that prevented virtual asset service providers from offering services to retail customers".
- Rule 10.1(1), which required holders of licences under any of Guernsey's regulatory laws who carry on VASP activities to hold a Part III VASP licence as well. The Commission said in July 2026 that this deletion "does not eliminate the need for additional licences in all cases".
- Rule 10.3, the environmental declaration. It required VASP licensees to publish information each year on the environmental impact of the consensus mechanisms of each virtual asset they deal with.
Rule 10.2(2) is unchanged. It prohibits VASP licensees from dealing in, trading in or offering virtual assets or services that aim to obscure the parties to a transaction or the flow of assets.
Who is affected
The changes affect Part III VASP licensees, firms holding other Commission licences that undertake or wish to undertake virtual asset activity, and firms looking to establish or expand digital finance operations in Guernsey.
The July 2026 feedback paper said: "At this time the Commission does not propose to impose additional conduct rules for firms dealing with retail customers." The Commission said existing requirements, including the minimum criteria for licensing and the Principles of Conduct of Finance Business, already address many of the issues behind calls for enhanced retail conduct rules. It also said licensees offering virtual asset business directly to retail customers "will need to notify the Commission".
What happens next
The rules come into force on 1 Oct 2026.
The feedback paper also said the Commission would enable "existing PoI and insurance licensees to trade, hold or invest in virtual assets in the course of carrying on restricted activities without an additional VASP licence". PoI refers to the Protection of Investors (Bailiwick of Guernsey) Law, 2020. The Commission planned to do this through a notice under section 40 of the Lending, Credit and Finance Law, and invited comments on a draft by 31 Aug 2026.
On 14 Sep 2026, the Commission said it expects feedback and rules on a stablecoin framework by the end of 2026.
Anvesan view
The retail change applies by rule from 1 Oct 2026. The relief the Commission planned for PoI and insurance licensees depends on a separate section 40 notice, which neither the 14 Sep 2026 nor the 17 Sep 2026 release mentions.
Official source
Source: Guernsey Financial Services Commission (GFSC), news release, published 17 Sep 2026.
Published