The administration of the Isle of Man struggles to develop friendly regulation for bitcoin companies on the island. Now it is turning towards blockchain.

The head of digital business at the Manx Department of Economic Development Brian Donegan voiced the new position of island administration in the interview to Independent.

“The potential for this technology is absolutely huge. It is the blockchain side of things that we are excited about. We may not be Bitcoin Island so much as Distributed Ledger Island.”

Currently the administration of the island processes regulations for bitcoin companies present on Man.

“We move quickly because we can see the potential of what is out there. This technology is transformational and we want to be in the lead,” said Donegan.

According to the Independent, there are about 25 bitcoin start-ups on the island.

The island of Man attracted attention of bitcoiners in 2014, when its administration gave first hints to possible bright prospects for bitcoin. However, in the spring of 2015 the process of “legalisation” of bitcoin slowed down due to the full implementation of the Proceeds of Crime Act on the island.

Any businesses that carry out cryptocurrency operations, including issuing, transmitting, storing, buying, selling or exchanging, would fall under the Proceeds of Crime Act 2008. This means that failing to disclose an act of money laundering carried out through a cryptocurrency company would result in legal prosecution of the business. The anti-money laundering code also requires long-term record-keeping.

The recent changes in the status of bitcoin and blockchain in the UK create a new hope for the Manx. In 2015 the UK government changed their stance towards digital currency. The banks are also interested in the new technology, which allows them to cut some costs. The Barclays bank accepted a bitcoin company into its London-based incubator and joined the global consortium of banks developing the blockchain technology. All this gives the project of “bitcoin (or more recently blockchain) island” located between Britain and Ireland some chance for success.

Roman Korizky