Share this article
Isle of Man Regulator Says Bitcoin, Ether Not Considered Securities in New Guidance
The island's Financial Services Authority has set out how it will treat cryptocurrencies and crypto assets and which might be regulated as securities.
Updated Sep 14, 2021, 10:09 a.m. Published Oct 15, 2020, 10:32 a.m.
The financial watchdog 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.
STORY CONTINUES BELOW
- Published late last month but announced Thursday, the island's Financial Services Authority (FSA) said the perimeter guidance is aimed at giving companies greater clarity when setting up blockchain-related business in the jurisdiction.
- Developed in partnership with Digital Isle of Man, an executive agency within the government's enterprise department, the guidance is aimed to be "technology neutral," according to the document.
- 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 ether fall outside its regulatory oversight, companies operating with such assets mustnregister 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.
- Calling the development a "milestone," Steve Billinghurst, regulatory lead at Digital Isle of Man, said the guidance is likely to evolve further in line with the changing regulatory situation in other major jurisdictions.
Also read: SEC Will Be Forced to Give Crypto Guidance Despite Bureaucracy, Risk Avoidance: Peirce
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Canadian Province Wins Forfeiture of $1M QuadrigaCX Co-Founder's Cash, Gold via Default Judgment
The ruling transfers cash, gold bars, watches, and jewelry seized from a CIBC safety deposit box and bank account into government hands after Patryn did not defend the case.
What to know:
- The Supreme Court of British Columbia has forfeited $1 million in cash and gold tied to QuadrigaCX's co-founder, Michael Patryn, to the government.
- Patryn did not contest the forfeiture, which involved 45 gold bars, luxury watches, and over $250,000 in cash seized under an Unexplained Wealth Order.
- The forfeiture may lead to a process determining if any assets can be directed to QuadrigaCX's creditors, who received 13 cents on the dollar in the bankruptcy settlement.
Top Stories
