The Isle of Man, a British Crown Dependency, has released a fresh wave of crypto regulatory news with specific requirements for the industry operating on the island.
The Isle of Man, a self-governing British Crown Dependency, has recently started a crypto consultation phase. The crypto regulatory news has grabbed the spotlight in the crypto community since the island is a global financial center. A local regulator in the region also released a crypto consultation discussion paper detailing its plans.
Like other countries, the Isle of Man has proclaimed its concerns for anti-money laundering and countering terrorism financing. The two issues have become concerns for crypto regulation worldwide. Meanwhile, the National Risk Assessment of the island has recognized how the crypto industry would need to prevent such risks.
Further, the crypto consultation paper also highlights various suggestions for crypto regulation. However, a degree of crypto regulation already covers a majority of industry firms on the island.
The first suggestion is for crypto firms to stick to current financial regulatory laws on the island. The second involves lending ‘investment’ status to crypto. The paper stated that it will help treat crypto firms on the same footing as other investment businesses.
Other suggestions included creating completely separate regulatory frameworks for crypto. The paper finally states how it would broadly adopt ideas from the UK and the EU’s initiatives in crypto regulation.
Regarding funding for new regulators, the paper mentioned, “The establishment of new regulated activities for crypto-asset activities would either need to be funded by fee income from those regulated entities, fee income from the wider financial services sector, a subvention from the Isle of Man Government, or a combination of those three.”
Meanwhile, the UK’s crypto-friendly initiatives will likely continue to positively impact the island’s policies.
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