New crypto regulation in the Isle of Man
The Isle of Man Financial Services Authority has published new crypto regulation guidelines.
This is a document published by the Isle of Man Financial Services Authority (IOMFSA) which outlines its position on the applicability of financial regulatory requirements to cryptocurrencies and tokens issued using DLT.
The guide, developed in collaboration with Digital Isle of Man, an Executive Agency within the Department for Enterprise, serves to provide greater clarity to those who consider the island as a potential location for their DLT-related activities. In particular, it provides information on the likely regulatory status of crypto assets and tokens that may be issued in the future, depending on the nature of the assets and tokens themselves.
Crypto regulation in the Isle of Man
In fact, the IOMFSA intends to regulate entities that undertake activities with cryptocurrencies and tokens that have the characteristics of securities or electronic money, to the same extent that they were issued in other forms.
However, entities undertaking certain activities outside the regulatory scope, including cryptocurrencies such as Bitcoin and Ether, do not require licenses for financial services, but must still register with IOMFSA as “Designated Businesses”, in addition to complying with anti-money laundering and anti-terrorism rules.
The guide is accompanied by a series of answers to frequently asked questions that clarify the IOMFSA’s point of view on common issues raised by those who have already made requests in this area to the IOMFSA.
The Regulatory Lead of Digital Isle of Man, Steve Billinghurst, said:
“The publication of this guidance is an important milestone, marking the culmination of a period of close cooperation between ourselves and the IOMFSA. But there’s plenty more to do as the regulatory environment in crypto assets and cryptocurrencies continues to develop in major jurisdictions.
Digital Isle of Man continues to keep a close eye on developments and, through a series of discussions with industry stakeholders, we will be bringing new proposals, for its consideration, to the IOMFSA regarding potential future regulatory matters, new guidance notes and further FAQs to support professional advisers and their clients”.