Reports say that The Isle Of Man will not only be lenient on ICOs or initial coin offerings, but they will encourage ICO fundraising through a government initiative, a move that is sure to bring more ICO projects to fruition in the area. Speaking on behalf of the Isle Of Man’s Department of Economic Development, the head of operations for fintech and digital development, Brian Donegan explained that the government had already begun to lay the groundwork that will act as a regulatory framework for the ICO initiative. Donegan implied that ICOs or token sales will be allowed, as long as the projects comply with anti-terrorism and anti-money laundering regulations.
While the Government has not issued a formal announcement, the Isle of Man has been pouring the foundation for an initiative involving fintech and anti-laundering regulations since 2014.
When asked about the motivation behind the ICO welcome party, Donegan Commented
“Our understanding and analysis of the ICO market is that it represents a massive vertical market for us.”
Companies and startups seeking to launch a token sale or ICO fundraiser will be required to register with appropriate departments within the local government, to ensure compliance with regulations.
“I have to tell you, for every 10 applications we’ve had from ICO promoters over the last several months, I’d say only one of those gets through because there’s a lot of scamming going on in the industry,”
So, while it may be a lucrative method of attracting investment dollars, that isn’t the motivation for the allowance of ICO’s according to Donegan. The motivation behind the movement, as the fintech government official claimed, is for the greater good of the self-governed island that sits within the Irish Sea.
Donegan finished by saying “What we’re about is keeping consumers safe and keeping crime out.”
Timing is everything, and it may not be a total coincidence that the Isle Of Man’s newfound warmth for ICO’s is getting more attention at the same time as China announced a total ban on ICO fundraising in a lengthy statement.
Translated from Chinese:
“Any illegal open financing behavior, suspected of illegal sale Tokens, illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities The relevant departments will closely monitor, strengthen cooperation with the judicial and local governments, in accordance with the existing mechanism, strict law enforcement, resolutely control market chaos Anyone suspected to be criminal who violates these regulations, will be facing the judiciary system as a criminal”
So it does raise an eyebrow when on one hand consumers are led to believe that the surfacing plans to encourage ICO’s are not a revenue-motivated plan, yet, the timing against the Chinese crackdown seems like a common marketing gimmick. It almost looks like the Isle of Man is seeking to rally up the overflow from any stranded or would-be ICO’s who are being turned away from China’s gates, or shut down entirely.