Bitcoin exchange CoinCorner has announced that it has been awarded Designated Business status in the Isle of Man.
CoinCorner is an Isle of Man (United Kingdom) based Bitcoin solutions provider, offering users a range of services such as buying and selling Bitcoin, a cloud based wallet, mobile app, and a payment gateway for merchants.
The title, granted by the Isle of Man Financial Services Authority (IOMFSA), took effect on Wednesday 4th May 2016 after CoinCorner successfully applied to become a Designated Business, following the introduction of The Designated Businesses (Registration and Oversight) Act last year.
Background to the Designated Businesses (Registration & Oversight) Act 2015
Following comments from the IMF report in 2009, the Council of Ministers considered proposals put forward by the then Chief Secretary’s Office (now the Cabinet Office) to place responsibility on the Isle of Man Financial Services Authority for the oversight of certain businesses and professions (“Designated Businesses”) to the Island’s anti-money laundering and countering the financing of terrorism legislation.
The Designated Businesses (Registration and Oversight) Act 2015 (PDF) was passed in order to address these comments and came into force on 26 October 2015. Designated businesses are registered and overseen by the Authority for AML/CFT compliance only – they retain their current status with the various bodies responsible for their wider business, competence or other matters, such as the Isle of Man Law Society, the ICAEW, ACCA, CIMA, the Office of Fair Trading etc.
With the Isle of Man’s acceptance of bitcoin friendly businesses well documented, Designated Businesses now also include those in “the business of issuing, transmitting, transferring, providing safe custody or storage of, administering, managing, lending, buying, selling, exchanging or otherwise trading or intermediating convertible virtual currencies, including crypto-currencies or similar concepts where the concept is accepted by persons as a means of payment for goods or services, a unit of account, a store of value or a commodity.”
When discussing the importance of becoming a Designated Business, Duncan Hughes, Senior Developer at CoinCorner said,
“This is great news for everyone – ourselves, our customers and the bitcoin industry. Trust is an important part in this industry and we feel that by becoming a Designated Business, it verifies the legitimacy of our business. We want our customers – old and new – to know that they can trust us, our products and services.”