Draft Taxation (International Tax Compliance) (Crypto-Asset Reporting Framework) (Jersey) Regulations 202- (P.99/2025): comments
This content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments. Please see the PDF for the official version of the document.
STATES OF JERSEY
DRAFT TAXATION (INTERNATIONAL TAX COMPLIANCE) (CRYPTO-ASSET REPORTING FRAMEWORK) (JERSEY) REGULATIONS 202- (P.99/2025): COMMENTS
Presented to the States on 2nd December 2025
by the Economic and International Affairs Scrutiny Panel
STATES GREFFE
2025 P.99 Com.
COMMENTS
Background
Draft Taxation (International Tax Compliance) (Crypto-Asset Reporting Framework) (Jersey) Regulations 202- [P.99/2025] (hereafter referred "the draft Regulations") was lodged au Greffe on 29th October 2025 by the Minister for External Relations (hereafter the Minister) and is scheduled for debate at the States' sitting commencing 8th December 2025.
The draft Regulations, alongside Draft Taxation (Implementation) (International Tax Compliance) (Common Reporting Standard) (Jersey) Amendment Regulations 202- [P.100/2025] (hereafter referred "the draft Amendment Regulations"), are intended to maintain Jersey's commitment to meet the international regulatory requirements determined by the Organisation for Economic Cooperation and Development (OECD).
The Economic and International Affairs Scrutiny Panel (hereafter "the Panel") wrote a letter to question the Minister on the draft Regulations and received a response on the 7th November 2025. The Panel also questioned the Minister during a Quarterly Hearing on 18th September 2025.
The Draft Regulations
The Panel was informed by the Minister that the draft Regulations comprise the minimum necessary to implement the Crypto-Asset Reporting Framework (CARF) into domestic law only.1 The Minister has further explained that the CARF was developed by the OECD to establish a reporting or exchange of information process for digital assets between jurisdictions. The Panel was advised that the draft Regulations are designed to develop the existing reporting framework, which does not currently prescribe for digital assets.
The Minister:
"Why we are involved is a good question, but it is an evolving international standard so that is ultimately why we are involved. It is a framework that has been developed by the O.E.C.D. The G20 asked them to do it and it is about forming a reporting or exchange of information process for, in effect, crypto assets that would not have fallen into the existing reporting framework, which is C.R.S. (Common Reporting Standard)."2
The implementation of the draft Regulations will primarily involve exchanging information with other jurisdictions due to the low number of local structures that fall within scope.
The Minister:
"We do not have very many structures that it would currently apply to but obviously between jurisdictions there is a lot of information that flows between jurisdictions so those jurisdictions can understand what is happening, or out of other jurisdictions.
1 Letter - Minister for External Relations re: Amendments to the Common Reporting Standard Regulation and FATCA Regulations - 7 November 2025
2 Transcript – Quarterly Hearing – Minister for External Relations – 18 September 2025
"These whole frameworks are exchanging information so you would expect that we have the information in regard to a Jersey structure that might have investors from A.N. Other country. Those A.N. Other countries may have obligations to report on their tax return, for example, to their home jurisdiction and so it is just that flow of information so that both sides can see that it is being reported appropriately." [3]
The Panel heard that the consultation process included a range of representatives from relevant industries, in which the draft Regulations were generally welcomed. The consultation process resulted in requests for accompanying guidance from Government of Jersey, which the Assistant Comptroller of Revenue advised will be addressed.
Assistant Comptroller of Revenue:
"We had a lot of responses about penalties, which we expected to get, and that was very useful feedback. In terms of the proposals in terms of the way we have proposed to implement the C.A.R.F. and the amendments to the C.R.S., business made very few comments. I think they generally welcomed the fact that we were building on existing frameworks and quite predictable legislation that has already been in place. There were some requests for guidance, which we will be addressing. In one case we have had to refer that request back up to the O.E.C.D. because it to do with the interpretation of the standard as opposed to something that we can opine on here, but it was quite positive." [4]
Proposals to amend penalty provisions are not included in the draft Regulations. [5]The Panel was advised that a separate twelve-week consultation exercise will be conducted due to the number of responses related to proposals to amend and align the penalty provisions across all three Automatic Exchange of Tax Information (AEOI) Regulations (CARF, CRS and FATCA), which will result in a separate Proposition.
It was confirmed that regulatory burden will increase for businesses as a result of the proposals, who will need to collect additional client due diligence to identify the tax jurisdictions or tax residence and the taxpayer information numbers of their clients. This information will be reported on an annual basis to Revenue Jersey from 2027.
Assistant Comptroller of Revenue:
"It is an additional reporting obligation on businesses that assist people to trade but it builds on existing client due diligence. There is additional client due diligence that needs to be done because they now need to identify the tax jurisdictions or tax residence and the taxpayer information numbers of their clients, which they have not had to do before, and they will have to make reports to Revenue Jersey on an annual basis from 2027. So, yes, it is additional." [6]
Page - 3
Conclusion
The implementation of the draft Regulations, alongside the draft Amendment Regulations, will ensure that Jersey upholds the necessary regulatory commitments determined by the OECD. The Panel is supportive of the draft Regulations as proposed.