Isle of Man Seeks Public Input in Effort To Tighten Crypto Assets Regulation
The Isle of Man has rolled out a public consultation on possible crypto assets regulation to protect investors in the jurisdiction.
In a Feb 13 release, financial authorities in the self-governing British Crown dependency sought models to expand its laws on crypto assets in line with global standards.
The 22-page document highlights the status quo of virtual assets regulation on the island while mapping out plans to meet global standards.
A significant purpose of the discussion paper is for stakeholders to view the Financial Services Act (2008) and make contributions through public consultation.
“Open dialogue With stakeholders is an essential element for successful development of authority proposals. Constructive feedback will help the authority reach an informed decision on the contents of the proposals and manner of implementation.”
Per the press release, the National Risk Assessment identified certain activities of crypto actors posing money laundering and terror financing risks.
Furthermore, these risks extend to individual users with the high volatility of crypto assets, and industry collapses in the sector.
The paper flags some non-fungible tokens (NFTs) and Initial Coin Offerings (ICOs) that ended badly for several investors. Notably, the recent FTX implosion, which saw billions wiped out of the market, and the MT Gox debacle were attributed to regulatory failures.
Although most persons engaged in crypto-related activities are registered and regulated within the island’s AML/CFT framework, certain activities remain unregulated by the authority.
In February 2022, the Isle of Man Authority made similar moves to get responses from stakeholders. All nine responses affirmed that crypto-related companies should be regulated,
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