Isle Of Man’s Financial Services Authority Publishes Regulations Governing Blockchain
PANewsKR 2020-10-16 08:13:02
The Financial Services Authority (FSA) of the Isle of Man, a self-governing British Crown dependency, has clarified how it will treat cryptocurrencies and other tokens, and which might be regulated as securities. The perimeter guidance is aimed at giving companies greater clarity when setting up blockchain-related business in the jurisdiction. The FSA said the precise treatment will depend on the nature of the token, and the watchdog will consider "substance rather than form." While some cryptocurrencies like Bitcoin and Ethereum fall outside its regulatory oversight, companies operating with such assets must register with the FSA as “Designated Businesses” and comply with anti-money laundering and countering the financing of terrorism requirements. Such entities will not require a financial services license. Those carrying out activities with tokens that "have the characteristics of securities or electronic money," will be regulated by the FSA. The guidance suggests that tokens offering profit, income or capital growth would be regulated as security-like investments and would require a financial services license. These tokens would come under the same rules that would apply if the investment were made via other means such as share certificates. Tokens or cryptocurrencies that offer a store of value or access to services, and are not a form of e-money, would be unregulated.