Announcing a Return to our Roots: The All-New Bitcoin Magazine

Isle of Man Preparing to Pass Digital Currency Regulatory Framework

by

         Isle of Man Preparing to Pass Digital Currency Regulatory Framework

The Isle of Man wants to become a leading Bitcoin hub and attract digital fintech businesses, entrepreneurs and developers, Business Insider reports. The government of the tiny island is about to pass a new regulatory framework to create a true paradise for digital currencies.

The Isle of Man is a self-governing British Crown dependency located in the Irish Sea between the islands of Great Britain and Ireland.

While the United Kingdom is responsible for the island’s defense and foreign policy, the local parliament and government have power over all domestic matters. Business regulations and tax incentives are domestic matters, so the island has the freedom to pass innovative legislation and tax incentives to attract digital fintech firms and professionals.

In fact, the Isle of Man has long been a favorite location for online businesses that need a permissive regulatory climate. For example, it has a world-class reputation as an online gaming and sports betting hub that offers a friendly and agile regulatory environment to the operators and at the same time provides strong legal protection to their customers worldwide.

The new regulatory framework for digital fintech will be informed by the same principles, and may permit restoring the support of the leading U.K. banks that in 2014, scared by the high volatility of bitcoin, stopped working with the digital currency industry on the island.

Brian Donegan, the Isle of Man’s head of operations for digital development and e-business, told CoinDesk that the government is moving aggressively to put key measures in place that would help the region’s budding digital currency industry thrive.

The Proceeds of Crime Act, which has been altered to account for digital currencies, is expected to come into force at the start of April. A new legislation, the Designated Businesses Bill, will regulate the activities of businesses responsible for holding sums of money, including Bitcoin exchanges.

Peter Greenhill , head of e-commerce for the Isle of Man, told Business Insider that the aim is to be the most attractive place in the world for cryptocurrency companies to work from, with “friendly but firm legislation” for digital currency startups.

“We have the regulations and infrastructure in place to become a world leader in digital currencies,” he said. “We already have companies coming in and setting up. We see this as the future and we want to be at the center of development in this area.”

It may seem odd that firmly enforced regulations are presented as an advantage for companies operating in a frontier industry that is often threatened by regulators, but Greenhill considers it a necessary step to foster trust in the use of digital currencies.

“These companies will be listed on a register that will be strictly controlled by the island’s Financial Supervision Commission,” he told Computer Weekly. “They will hold their records, have them audited, looked at, and if they see something untoward they’ll take those people off that register and make sure the world knows about it. We set the bar high, and if people don’t meet [our requirements], they can go somewhere else.”

It appears that the Isle of Man is aligning with the current trend of fostering the emerging Bitcoin economy and taking it mainstream, but under a firm regulatory framework.

Isle of Man image via Flickr.

Recommended

Ten Years Later, a Reflection on Bitcoin’s Genesis and Satoshi’s Timing

Rather than focusing simply on what the genesis block is, today is a day to reflect on what the genesis block represents.

Colin Harper

Op Ed: From Gray To Black and White: Traditional Regulations Come to Crypto

For the crypto industry, recent developments — at both the federal and international levels — signal that the time for plausible deniability or unregulated freedom is coming to an end and more traditional regulations are moving to the forefront.

Courtney Rogers Perrin and Joshua Lewis

Bitcoin Price Analysis: Blowing Through Support Levels on the Way to $3,000

Bitcoin continues to tumble lower and lower as it struggles to claim any footing in the market. It’s down almost 50% in three weeks and it’s showing very little sign of stopping. It’s currently clutching onto the $3,500 values but it doesn’t look like it can hold on much longer.

Bitcoin Schmitcoin

Op Ed: SEC’s Latest Declaration Creates Legal Minefield for Digital Assets

This broad, authoritative declaration is not unexpected, as, to date, the SEC has stated that all digital assets — regardless of whether they function as alt coins or utility tokens — are securities at least initially and, thus, subject to its jurisdiction.

Huhnsik Chung and Nicholas Secara