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Guernsey regulator backs tokenised insurance-linked securities for re/insurers
The Guernsey Financial Services Commission plans guidance on tokenised ILS and says public blockchains can be used for fund tokenisation while clarifying that tokenised ILS do not require VASP licensing.
The Guernsey Financial Services Commission (GFSC) said it supports re/insurers using tokenised insurance-linked securities as part of its feedback on tokenisation of assets regulations, describing the move as a way to spur innovation in digital finance.
In a recent feedback paper, the GFSC said its existing technology-neutral framework is suited for digital finance and proposed targeted refinements aimed at reducing complexity, creating clearer routes to market, and supporting well-governed innovation that can scale safely.
Among the specific actions outlined, the Commission plans new guidance to support tokenisation of investments and other assets, permits the use of public blockchains for fund tokenisation, and provides regulatory clarity on how tokenised ILS do not require VASP (virtual asset service provider) licensing.
The GFSC also said it will work with the States of Guernsey to simplify and clarify parts of the legal and regulatory framework for digital finance businesses, including reducing licensing hurdles so existing investment and insurance license holders can conduct certain virtual asset activities without an additional VASP licence, according to Artemis.