Risk assessment on Virtual Assets carried out

Money laundering, terrorist financing and proliferation financing risks evaluated in process

The Isle of Man's virtual assets sector's risk from global financial crime threats has been classified as medium following a national risk assessment.

The process involved a comprehensive evaluation of the money laundering, terrorist financing and proliferation financing risks associated with the use of virtual assets in, and from the Island.

As a sector, virtual assets remains small in scale but it's international connections create a degree of vulnerability.

The findings reflect a combination of factors including the growing use of 'stablecoins' - a type of cryptocurrency - along with globally and evolving criminal typologies such as online fraud, cyber-enabled crime and cross-border laundering.

No evidence of domestic terrorist or proliferation financing involving virtual assets was found in the assessment, as well as no evidence of Isle of Man registered providers offering privacy coins or anonymity enhancing services.

The National Risk Assessment has been developed in line with international standards and methodologies.