Feedback will shape approach to innovation

The Isle of Man Financial Services Authority is seeking feedback to help shape its future approach to fintech innovation, particularly in relation to crypto-assets.

A ‘Request for Input’ has been issued today, Monday 21 February 2022, via the Government Engagement Hub to invite comments on ‘Innovation and the Regulatory Perimeter.’

The Authority is capturing the views of stakeholders to strengthen its understanding of emerging risks, new opportunities and challenges resulting from innovation, such as crypto-currencies, crypto-exchanges and initial coin offerings.

Comments can be sent by email to or by post to Dan Johnson, Senior Manager, Policy and Authorisations, IoM Financial Services Authority, PO Box 58, Finch Hill House, Bucks Road, Douglas, IM99 1 DT.

The deadline for submissions is 18 April 2022.

Responses will inform discussions around the future development of fintech innovation, and whether certain activities could or should be brought within the Island’s regulatory perimeter.

Most firms conducting business in connection with crypto-assets and Convertible Virtual Currencies (CVC) are not currently regulated by the Authority. They are registered as designated businesses and supervised for compliance with anti-money laundering and countering the financing of terrorism legislation.

The Request for Input is intended to open a dialogue with stakeholders around the existing approach and the potential implications of broadening the regulatory perimeter.

The research will support the Authority’s long-term goal of embracing innovation within a dynamic, appropriately-regulated international finance sector.

Dan Johnson, Senior Manager, Policy and Authorisations, said: ‘The Request for Input is an initial fact-finding exercise to develop our knowledge of innovation and help determine the next steps. It’s essential for us to hear from stakeholders about how the Island can best position itself to take advantage of opportunities in the crypto world.’

Bettina Roth, the Authority’s Chief Executive Officer, added: ‘The Authority is open to new ways of conducting business, but as a risk-based regulator we must always seek to strike the right balance.  While innovation can stimulate economic growth and enhance consumer protection and choice, there is also a significant cost to introducing a new regulatory framework, as well as more stringent requirements for businesses. We will review the feedback from the consultation and continue to liaise with stakeholders to plan for the future.'