Earlier this week, we saw the dramatic move by Chinese regulators led by the People’s Bank of China, declaring that Initial Coin Offerings (ICOs) are illegal. Effectively affecting both domestic and international activities relating to the funding model.

However, the Isle of Man, a British Crown dependency, chooses to open its doors to entrepreneurs who are interested in launching ICO. While countries like Canada have offered some hope for ICO organizers, this move by the Isle of Man is one step above in accepting a range of token sales.

In an interview conducted by CoinDesk, a leader in blockchain related news, with Brian Donegan, head of operations for fintech and digital development at the Isle of Man’s Department of Economic Development, Mr. Donegan said that the Isle of Man has created a regulatory framework it believes will allow for token sales that are compliant with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Although this has yet to be announced formally, it’s been moving in this direction for some time. Mr. Donegan said that the framework itself is based on AML regulations put in place in 2014 and 2015. Adel, a fintech incubator that launched an ICO after incorporating on the island, effectively served as a test-bed for the concept.

The reason behind why the self-governing dependency is moving to capitalize on the interest in ICOs is simple. "Our understanding and analysis of the ICO market is that it represents a massive vertical market for us." Mr. Donegan said.

The early bird gets the worm, there's a significant opportunity for governments that are early adopters in creating accommodative environments for ICO organizers.

Businesses looking to launch an ICO in the Isle of Man would be required to register with the relevant authorities within the dependency and follow the applicable regulations. That said, officials would play a supportive role for businesses as they move through the token sale process.

When asked to comment on China’s move to outlaw ICOs, Mr. Donegan believes the Isle of Man can provide AML/KYC compliance specifically tailored for ICOs as they are absolutely necessary. The Isle of Man first revealed its plans to put rules in place for cryptocurrency businesses in 2014.

"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," he said, concluding: "What we're about is keeping consumers safe and keeping crime out."

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