Over the past few years, the Isle of Man has made significant progress in making the island one of the best locations to set up shop as a blockchain or digital currency business. However, coronavirus has made it difficult for businesses looking to operate out of the Isle of Man to relocate to the country. Fortunately, the Isle of Man Financial Services Authority (IOMFSA) has come up with a solution to that problem.
Under normal circumstances, a business registered in the Isle of Man needs to have a physical presence on the island and have at least two Isle of Man resident directors to ensure management and control of the business is on the Island. But as we all know, coronavirus has made cross-border travel difficult, and nearly impossible depending on where you live or what kind of passport you have.
But now, the IOMFSA allows digital currency businesses to apply for a “subject-to” registration. The subject-to registration allows a business to register in the Isle of Man if they satisfy all of the registration criteria besides re-location, under the condition that if their application is accepted, they will relocate to the Isle of man when it becomes possible. When the company officially re-locates to the Isle of Man, its application will receive formal registration.
That being said, the subject-to registration lets the business know that their registration in the Isle of Man will indefinitely be approved once they relocate to the Isle of man (if their business operations have not drastically changed from the time they registered for the subject-to, to the time that they are able to physically relocate).
“This welcomed option comes at a time when crypto businesses are looking for some regulatory certainty, not just for the final outcome but for the process and regulatory direction. The route to registration for crypto businesses has been well trod by the IOMFSA over the past five years, each time they continue to adapt and strengthen the opportunities available,” said Steve Billinghurst, the Regulatory lead at Digital Isle of Man.
Why the Isle of Man?
The Isle of Man has one of the most straightforward regulatory frameworks for blockchain and digital currency businesses. In our recent conversation with Steve Billinghurst, we learned more about the Isle of Man’s legal frameworks for blockchain and digital currency companies, as well as, why businesses gravitate toward countries with regulatory certainty. To find out why the Isle of Man is becoming one of the best destinations for blockchain and digital currency businesses, you can learn more by reading CoinGeek’s interview with Steve Billinghurst.
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