Since the highly successful Crypto Valley summit in September 2014, the Isle of Man's profile in the crypto currency sector has continued to grow and a number of businesses are progressing with their plans to establish on the Island.
One such business, Garigus Limited, has recently incorporated on
the Island and the shareholders paid for their shares in bitcoin.
This was a key milestone in the development of the crypto currency
industry on the Island and one of the founders commented on the
speed at which progress was made saying:-
"The Isle of Man 'Where You Can' tag line is not just rhetoric – there is a real ability for those in the private sector and public sector to work together to provide world class solutions to meet customer requirements".
In terms of regulatory developments, consultation has taken place on the amendment of the Proceeds of Crime Act 2008 to include crypto currency businesses in the schedule of businesses which must comply with the Island's primary and secondary anti-money laundering legislation. This is a positive step forward for the Island's ability to show an appropriate regulatory framework for the crypto currency sector, particularly in view of Lord Hill's recent recommendations in relation to the sector. Lord Hill, who is the new EU commissioner-designate for the Financial Stability, Financial Services and Capital Markets Union portfolio, commented in October 2014 that consideration should be given to bringing crypto currency businesses under the umbrella of the Fourth EU Money Laundering Directive and that this would be subject to further dialogue with the EU in the coming months. The Isle of Man has clearly already made significant steps forward in this regard, positioning itself well in terms of perceptions from international bodies and authorities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.