It’s an apt question, and on the minds of many who have seen the incredible rise of capital raised for new and existing companies via Initial Coin Offerings in the last twelve months. 2017 saw around $9bn raised via token generation and sales on listed exchanges by new, ambitious and hungry fintech companies – as well as no small number of less scrupulous individuals.
It is true that most of these did not take place on the Isle of Man. We think that is because much of the hype in blockchain monetisation comes from a desire by most of these companies to “cash in”. We all witnessed the epic rise of the price of bitcoin: from the initial bubble to £90 in 2014, to £1,000 in 2017 and finally an incredible £18,000 by the end of 2017.
Ethereum was no different. If you had bought £5,000 during its ICO, you would be cashing out £20,000,000 today.
It is this kind of thinking that fuels a lot of those wanting to carry out ICOs right now. And that is precisely the attitude that the Isle of Man’s regulation doesn’t cater for. Much of the investment made into the “easy money” ICOs fueled by greed and “fear of missing out” has disappeared, with token holders left holding on to valueless crypto despite the promises made to them.
Whilst we have a thorough regime and oversight for regulating ICOs (in which MK Compliance LLC are experts) the Isle of Man has always held the title of the world’s premier end to end centre of regulatory excellence for online technology. That’s why the world’s biggest and best online gaming companies find themselves at home here (think Pokerstars, for example).
You heard that right: if your ICO passes the test and takes place on the Isle of Man, your company will keep its profits to reinvest into the services and products you came to deliver. Most companies here don’t have to pay any corporation tax and fintech is no different.
It’s simple: if you can commit to the process and successfully carry out your ICO here, you will be respected by consumers around the world.
The MK team has decades of experience helping companies find their feet on the Isle of Man, as well as being home to qualified solicitors, accountants, trust and estate practitioners and, of course, key individuals licensed by the Financial Services Authority.