Regulation of Crypto-Asset Activities

Overview

The purpose of this Discussion Paper is to seek views on the current approach to the oversight of certain crypto-asset activities for anti-money laundering and countering the financing of terrorism (‘AML/CFT’) purposes, the desirability (or not) of regulation, the potential approaches to regulation and how the cost of regulation should be funded.

Why your views matter

The Authority has been monitoring recent developments and has identified the following options on the possible expansion of the regulatory perimeter under the FSA08 to cover crypto-asset activities. Not all of these options are mutually exclusive:

1. Maintain current approach under the DBROA15 (i.e. no change)
    
2. Extend existing ‘investment’ definition to include crypto-assets
    
3. New regulated activity for the operation of a crypto-asset service provider
    
4. New regulated activity for issuing and advising on crypto-assets and similar activities and
    
5. New regulated activity for issuing and managing stablecoins

Views are sought on these options, with related questions in the next few sections of the Discussion Paper.

Confidentiality and Data Protection

The information you send may be published in full or in a summary of responses. All information in responses, including personal data, may be subject to publication or disclosure in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2015 and the Data Protection Act 2018) with which the Authority is obliged to comply.

The Authority is registered with the Information Commissioner as a data controller under Isle of Man data protection legislation. It collects and processes personal data to carry out its functions under relevant legislation and may share personal data with other parties where there is a legal basis for doing so. Further information on how the Authority collects and processes personal data can be found in the Privacy Policy on the Authority’s website.

If you have a query in relation to how this consultation has been carried out, please contact the Authority’s Legal & Policy Division by email at Policy@iomfsa.im or by telephone on +44 1624 646000.

Responding to this Discussion Paper

This Discussion Paper has been published on the Authority's website and on the Isle of Man Government's Engagement Hub (this site). A list of specific representative groups to which this Discussion Paper has been sent is shown below: 

• Alliance of Isle of Man Compliance Professionals
• Association of Chartered Certified Accountants (Isle of Man branch)
• Association of Corporate Service Providers
• Chartered Governance Institute (Isle of Man branch)
• Chartered Institute for Securities and Investment (Isle of Man branch)
• The Department for Enterprise
• Digital Isle of Man
• Finance Isle of Man
• Financial Intelligence Unit
• Financial Planners & Insurance Brokers Association
• Gambling Supervision Commission
• Institute of Directors (Isle of Man branch)
• Insurance Institute of the Isle of Man
• Isle of Man Association of Pension Scheme Providers
• Isle of Man Bankers Association
• Isle of Man Captives Association
• Isle of Man Chamber of Commerce
• Isle of Man Law Society
• Isle of Man Society of Chartered Accountants
• Isle of Man Wealth & Fund Services Association
• London Institute of Banking and Finance (Isle of Man branch)
• Manx Actuarial Society
• Manx Insurance Association
• Society of Trust and Estate Practitioners (Isle of Man branch)
• The Treasury

The closing date for comments is 9 April 2024.

Before you respond, please ensure that you have read the Discussion Paper. You can respond to this Discussion Paper online by clicking on the 'Online Survey' link below. Alternatively, you can download a paper version of this Discussion Paper in the 'Related' section below and email it to Policy@iomfsa.im or post it to: 

Mrs Sarah Marshall
Isle of Man Financial Services Authority
PO Box 58, Finch Hill House,
Bucks Road,
Douglas,
Isle of Man,
IM99 1DT

What happens next

Following closure of the discussion period, the Authority will review the responses received and publish a Feedback Statement document on the Authority’s website and the Isle of Man Government’s Consultation Hub.

The responses to this Discussion Paper will be used to inform the Authority’s approach to the regulation of crypto-asset activities.