The Isle of Man’s financial services regulator has sped up the approval process for cryptocurrency firms wishing to register there during the pandemic.
The Isle of Man Financial Services Authority (IOMFSA) will now allow a crypto businesses to apply for a ‘subject to’ registration’ under the Designated Businesses (Registration and Oversight) Act 2015.
Designated businesses are required to have a physical presence on the Isle of Man and have at least two Isle of Man resident directors to ensure management and control of the business is on the Island.
Now, amidst Covid-19 and travel restrictions, IOMFSA introduced the ‘subject to registration’ process, giving crypto businesses certainty by allowing them to register before moving to the island.
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The new process could benefit crypto-backed peer-to-peer lending platforms looking to domicile in the Isle of Man.
“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,” said Steve Billinghurst, regulatory lead at Digital Isle of Man, an executive agency for the Isle of Man government.
“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.”
Whilst holding a ‘subject-to’ registration the business must not promote itself as being a registered business operating from the Isle of Man.