Why is the Isle of Man, renowned financial tax haven for the wealthy and international businesses welcoming Bitcoin? CoinDesk features a guest article today from R. Paul Davis a barrister and solicitor for Counting House Services, a Canadian group of companies, headquartered in Canada. Davis lives and works on the Isle of Man specializing in international payments law and technology.
The Isle of Man according to solicitor Davis is allowing its financial system of liberal environment to include the crypto-related activities as well.
Davis explains in his guest feature that he wrote a legal opinion for his Canadian clients requesting to operate on the Isle of Man. In response this past Wednesday the Island’s Financial Supervision Commission responded and approved that a bitcoin exchange that has clients with a licensed overseas payment service provider is not required to obtain a license for activities in the self-governing British Crown country.
It is noted specifically that the FSC confirmed that neither Class 2 of the Regulated Activities Order,’ ‘Investment Business,’ nor Class 8 ‘Money Transmission Services’ covers bitcoin activities,’ writes Davis.
The FSC may change ruling in the future, however to accommodate other changes in requirements. Davis sees this as opportunity for two banks on the Isle of Man that offer facilities to regulated entities, but not to unlicensed businesses to define their business relationship with bitcoin exchanges and product payment systems.
The Isle of Man is very friendly to e-commerce business due to the no corporate tax for businesses, 10% only for banks and 20% for individuals with a max of 120,000 pounds or approximately the equivalent of $200,000 USD. This allows for very vigorous e-commerce base that bitcoin transactions are well suited. It is a match made in financial heavenly clouds.
Davis placing this solicitation for response of the FSC was done in preparation of a meeting planned for April1.There will be about 30 individuals from the Island with business interests in hosting services, bitcoin mining and bitcoin exchange operation planning at the meeting to form Manx Digital Currency Association.
This comes in view of the Department of Economic Development which has been tracking the progress of bitcoin and the possibility of a digital currency on the Isle of Man in some business form. The Dept. of Economic Development’s prime responsibility is to promote wealth generation throughout the commercial sectors and the creation of business opportunity to promote the workforce.
The Isle of Man has the financial community of a high powered level of business leaders and a well-educated and trained workforce to greet bitcoin business development. It is a financial talent center as is Silicon Valley is to technology development. The mechanics for operation and the interest are well positioned for bitcoin and cryptocurrencies to succeed on the Isle of Man.
To find out more about Bitcoin view the article below in Author’s notes and view the video atop this article from the BBC reporting on Bitcoin activity in London.
Twitter: Victoria Wagner@victoriaross888