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IOM shows pioneering spirit with new crypto business registration rule

Regulators in the Isle of Man have again underlined their flexible and forward-thinking approach to new technology with the announcement of a process designed to provide cryptocurrency companies with certainty.

Given current travel restrictions during the global pandemic, the Isle of Man Financial Services Authority (IOMFSA) has introduced a “subject to” registration, allowing crypto businesses to register without the need for an immediate physical presence on the island.

Crypto businesses are usually required to have at least two Isle of Man resident directors but the “subject to” registration allows them to register as long as all other criteria are met. This timely change is designed to allow greater certainty to firms considering the Isle of Man as a base and follows reports of businesses being “left in limbo” by the Financial Conduct Authority in the UK.

Digital Isle of Man Regulatory Lead Steve Billinghurst said: “This welcomed option comes at a time when crypto businesses are looking for some regulatory certainty, not just for the final outcome but for the process and regulatory direction.

“The route to registration for crypto businesses has been well trod by the IOMFSA over the past five years, each time they continue to adapt and strengthen the opportunities available.

“The area of regulation for crypto currencies and digital assets is continually moving, just consider the amount of developments in 2021.

“The IOMFSA continues to support good quality crypto business being able to work within a leading regulatory jurisdiction in a way that maintains the fight against financial crime, supports the positive reputation of the Isle of Man and provides consumer protection.”

SolutionsHub, based in Douglas, is a world-leading provider of blockchain technology and crypto regulation services.

CEO Lee Hills said: “The Isle of Man continues to set the standard when it comes to the regulation of emerging digital sectors, not least Distributed Ledger Technology (DLT).

“Not only does the island’s regulatory framework encourage and support good quality business, but there is also a willingness to work dynamically, to update processes and procedures, to move with the times and adapt to new challenges and opportunities.

“I would argue that the Isle of Man is now the most attractive home for DLT companies serious about doing business properly and having a solid foundation from which to grow.”

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