Legislation is on the way for cryptocurrencies, according to Treasury Minister Eddie Teare.

In a written response to a Keys question about the proposed regulatory framework being considered for virtual currencies such as Bitcoinoin, Mr Teare said they represent a new industry, with few recognised standards and are considered property rather than currency.

But he added because they could be used for money laundering or terrorist financing, the Proceeds of Crime Act 2008 will be amended to include them.

Mr Teare revealed the Council of Ministers has discussed regulating cryptocurrencies, which currently aren’t regulated.
But he added the Designated Businesses (Registration and Oversight) Bill 2014, currently going through the House of Keys, will include virtual currencies – meaning firms will have to register with the Financial Supervision Commission and abide by its controls.
He said at present the FSC can’t issue licences for businesses which aren’t carrying on regulated activities.
But he said the government and FSC are keeping a close watch on the sector, to see how oversight evolves internationally.