As of May 2016 Bitcoin and other virtual currencies can be used instead of cash for online gambling in the Isle of Man. To fully understand the magnitude of this development and what it means for crypto-currency, traditional money and gambling, then the following key terms must be understood.Bitcoin
The use of Bitcoins was first conceived from an idea that transactions should be able to be completed without scrutiny, regulations or heavy fees from a third party. This revolutionary concept resulted in an evolved currency that cannot be physically traced like a coin or bank note.
In the similar way that its namesake the bit utilizes space on the computer as a way to represent a character, the bitcoin uses monetary values represented by hashes. These monetary values can then be exchanged among parties or members of the transaction. The Bitcoin is currently valued at around £300 and is identified as highly unbreakable codes. These codes are then mined, traded and verified via a database that also records each transaction. This database is publicly held in a network of computers and is called the Blockchain or a distributed ledger Man is an Isle?
Less than four decades ago the Isle of Mann’s economy was mainly funded by
Agriculture, Fishing and Tourism. Today this is in stark contrast to the global digital currency industry leader it has become. So much so that the Isle of Man which is also known as Isle of Man, Ellan Vannin or just Mann is now also being called Bitcoin Island.
This was largely due to the fact that the Isle of Man has the freedom to make their own laws coupled with their willingness to go with the flow. This was further substantiated by Brian Donegan, head of the Department of Economic Development recent interview.
He was quoted as saying: “We have an advantage here in that we can put the legislation in place and provide the rigorous oversight that is needed more rapidly than other jurisdictions.”
He further explained: “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.”
Prophetic words indeed as the Isle of Man is now known as the Global Digital Currency Leader. This was not a random feat instead the Isle of Man used its lower tax rate than the UK, rapid economic growth, forward thinking government, willingness to stay current, along with the innovative technology that is currently available to it.
The Isle of Man also has a history of establishing itself as a modern trendsetter after staking its claim in the satellite operators industry in the 1990s. Riding on that technological wave, The Isle of Man is now offering online gambling companies options and benefits previously withheld or not available. This has resulted in the electronic gaming business representing an astonishing 16.7% of the £4.1bn Gross Domestic Product.The future of online gambling
As a result of an almost two years process, the Isle of Man can also now boast of being the first to establish a regulatory framework which will enable the use of digital currencies as never seen before. When this legislation came into effect earlier this month it meant that businesses using crypto-currency have to register with the government and be reviewed by a financial regulator. Among the new stipulations drafted by the Gambling Supervision
Commission and Treasury are the following:
Virtual currencies such as Bitcoin are accepted as cash the phrase “deposit of money” has been changed to read “deposit of something which has a value in money or money’s worth” Crypto-currencies including Bitcoin have been reclassified as property. the allowance for more startup operations by reducing the OGRA 2001 fees for sub-licensees’.
Full details of the new changes as laid out in the Gambling Regulation Package 2016 can be viewed in this article here: https://www.gov.im/lib/docs/gambling/egamingsectorconsultation.pdf
As a result of this technological and economical upsurge the Isle of Man is no longer just associated with TT motor-bike races or cats with no tails. Instead, The Isle of Man can now be known as the bench mark for Crypto-currencies and heralded as The Bitcoin Island.