Digital currency businesses will have to comply with the Isle of Man’s anti-money laundering (AML) laws from 1st April and will likely fall under the remit of the Financial Services Commission from the summer.
The Isle of Man government has amended the Proceeds of Crime Act 2008 so it covers bitcoin companies, such as exchanges, operating from the island.
Amendments to the act have been approved and state the following businesses will have to adhere to AML requirements:
“[Those in] the business of issuing, transmitting, transferring, providing safe custody or storage of, administering, managing, lending, buying, selling, exchanging or otherwise trading or intermediating convertible virtual currencies, including crypto-currencies or similar concepts where the concept is accepted by persons as a means of payment for goods or services, a unit of account, a store of value or a commodity.”
These companies will have to report to the authorities if they suspect a person using their business is engaged in money laundering. They will also have to assist in identifying the person they believe is involved.
This means cryptocurrency businesses will have to adopt certain know-your-customer (KYC) practices, collecting ID information so this can