The Isle of Man has been quite open to any company or individual looking to venture into the world of Bitcoin and cryptocurrency. CoinCorner is the first company in the region to achieve Designated Business Status as the company is now officially licensed.
CoinCorner Assigned Designated Business Status
The Isle of Man has introduced an Act in October of 2015, which would ensure companies in the area adhere to anti-money laundering and anti-terrorism financing legislation. That is not unusual, considering most other countries in the world have similar countermeasures in place, and all financial institutions have to adhere to these guidelines.
But things are a bit different in the Isle of Man, as the region has become a haven for Bitcoin and cryptocurrency startups. CoinCorner, one of British Bitcoin exchanges available today, has been based out of Isle of Man since June 18, 2014. When the new regulation went into effect, they were one of the first to apply for the Designated Business Status.
As part of these regulatory guidelines – dubbed The Designated Businesses Registration and Oversight Act – the IOMFSA became responsible for the oversight of adherence to these rules. Given the fact the Isle of Man is publicly open towards Bitcoin companies, the Act had to include a section detailing cryptocurrency transactions.
Bitcoin companies around the world can offer a wide variety of service, and CoinCorner is not just an exchange, but also a wallet provider. That makes them part of a business who “transmit, transfer, provide storage, and manage convertible currencies.” Moreover, the act of “exchanging, buying selling, or otherwise trading” applies to this company as well.
After sending in their application and all of the associated paperwork to achieve compliance with the new act, it has taken a while until CoinCorner heard back from government officials. However, on May 4th, 2016, the Isle of Man Financial Services Authority granted the title of “Designated Business” to the British company, indicating they are now officially “licensed” and complying with all regulatory requirements.
CoinCorner Senior Developer, Duncan Hughes, commented:
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.
The Isle of Man is not the only region in the world where Bitcoin companies have to adhere to specific guidelines if they want to be deemed a compliant business. Over in New York, the BitLicense regulatory guidelines were put in place in 2015, although only one license has been issued so far. Most other companies decided to leave the region for other areas with less stringent regulatory requirements.
What are your thoughts on CoinCorner achieving the title of Designated Business in the region? Do you know of any other companies in Isle of Man who are waiting to hear back on their application? Let us know in the comments below!
Source: Press Release Via Email
Images courtesy of Shutterstock, CoinCorner