Isle of Man Upbeat on Digital Currency Even in AML Announcement

Isle of Man's government today announced its intent to take actions "aimed at helping protect businesses and customers utilising digital currencies and provide an environment for high-quality businesses in this rapidly emerging field."

The Department of Economic Development's Director of E-Business Development, Peter Greenhill said that they're cognizant of both the opportunities and risks posed by digital currencies. As such, the relevant bodies have been instructed to ensure that both business opportunities are promoted and anti-money laundering (AML) requirements be applied.

The island, with a 2011 population of roughly 85,000, is a British Crown Dependency. It has the power to pass its own legislation but is technically not a sovereign nation. Its a possession of the British Crown, who manages its defense and foreign relations.

The island has become a sought financial haven, dodging the 2008-09 recession and recording 30 years of GDP growth at an average annual rate of 6%. It is ranked the 8th wealthiest international economy, ahead of both the U.S. and U.K. It has lenient tax policies, notably its 0% corporate rate. It has become a popular center for offshore banking. Sensitive to this, Greenhill stated:

"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."

The announcement doesn't make mention of specific digital currencies, such as Bitcoin, by name. Aside from touching upon money laundering, there's no mention of the dangers/risks posed by digital currency found in statements from most other governments commenting on it. These include: price Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, loss/theft, fraud and other criminal activity. Minister for Economic Development John Shimmin believes that when regulated, digital currency will be good for the economy:

I welcome this move to create a framework for the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term of digital currencies. The Isle of Man is synonymous not only with innovation, but for a regulatory environment that is both effective and pragmatic.

Although Shimmin mentioned the initiation of regulation, his intention was towards the creation of a rule framework for business conduct, not actual regulation of bitcoins or other digital currencies. This is evidenced in the Q&A document detailing their stance on digital currencies in regards to taxation, regulation and AML. Answering whether the Isle of Man is regulating digital currencies, the document states:

"No, it is intending to include crypto & digital currencies under the Proceeds of Crime Act 2008 and the Designated Business (Registration and Oversight) Bill 2014 to ensure that the activities undertaken are subject to the anti-money laundering legislation. The same registration and oversight regime that will be applicable to other designated businesses will then apply to digital currency businesses."

Isle of Man Q&A on Digital Currencies