Crypto firms operating on the island would have to meet the qualification requirements for investment businesses, which were not designed for the crypto market.
The Isle of Man, a self-governing British Crown dependency and a well-known offshore financial center, has opened a public consultation on the future of its crypto regulation.
On Feb. 13, the local Financial Service Authority (FSA) published a discussion paper on the oversight of “certain crypto-asset activities” for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) purposes.
According to the press release, the Island’s National Risk Assessment identifies crypto-related businesses as posing significant AML/CFT risks, requiring tighter regulation. However, currently, the “majority of crypto firms” on the island are already registered and supervised by AML/CFT legislation.
