No virtual currency regulation in the Isle of Man

The Isle of Man’s Financial Supervision Commission has confirmed that virtual currency businesses will not be subject to prudential or business conduct regulation. This is in stark contract to the European Union and New York State, both of which seek comprehensive virtual currency regulation.

The Isle of Man government intends to amend legislation later in the year to include certain virtual currency activities in its anti money laundering and countering financing of terrorism regime and to include those businesses in planned AML oversight legislation.

In the meantime, there is no regulation in force on this self-governing British Crown Dependency located in the Irish Sea between the Great Britain and Ireland. The low-tax jurisdiction is outside the European Union but is part of the UK bank clearing system.