Isle of Man Prepares to Protect Against Digital CryptoCurrencies

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Isle of Man Prepares to Protect Consumers Against Digital CurrenciesWith the rise of digital and virtual currencies, Bitcoin as a major example leading into this post, regulation and controls to protect consumers and operators are gaining focus towards anti-money laundering.

Isle of Man this week has weighed in heavily on the development to ensure a “fair policy is developed and implemented” along with the Department of Home Affairs. Plans to develop controls will fall under the Proceeds of Crime Act (POCA) which deals with a wide array of criminal issues as it provides for the legal seizure by a government or other public authority of civil recovery of proceeds from crime. Regulation is said to also fall under the Designated Business (Registration and Oversight) Bill 2014.

“The Isle of Man recognises both the risks and opportunities presented by digital and virtual currencies. We are conscious of issues that have surrounded these activities but also can identify serious and credible entrants to the market wishing to explore this innovative technology. Therefore, the Government has instructed the relevant departments and statutory bodies to ensure there is a regime that promotes both business opportunities but also applies appropriate anti-money laundering requirements.”

The use of digital currencies is being seen worldwide, Bitcoin ATM’s are becoming more readily available, travel agencies and hotels are now accepting, rapper 50 Cent recently announced his acceptance on the release of his new album and even one time considered anti bitcoin Apple have updated policies to reflect, the allowance of bitcoin as well as other cryptocurrency apps.

Island of Man plans to allow digital developers and entrepreneurs operation on the island as long as they fall within the scope of government regulatory guidelines adding,

“Our stance is intended to welcome those who can meet the necessary standards while also preserving the Island’s good reputation as a financial centre. We will work with Isle of Man Financial Supervision Commission, Department of Home Affairs and industry to ensure a fair and appropriate regime is implemented. This is not at this stage expected to embrace a full prudential suite of requirements, so consumers will need to be aware of this when making their decisions.”

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