The Isle of Man Financial Services Authority has suspended the licence of Blackfridge SC Limited (Blackfridge) which was the first GBP pegged stablecoin business in the British Isles.
In April 2022, Digital Isle of Man, part of the Isle of Man Government’s Department for Enterprise, had announced that Blackfridge was the first GBP pegged stablecoin business to gain the licence, following its entry into the Isle of Man Financial Services Authority’s regulatory sandbox, which was established to allow products to be tested in a live environment, while reducing the potential risk to consumers.
This came alongside the Isle of Man Financial Services Authority granting a financial services licence to Blackfridge to undertake payment services and issue electronic money. Blackfridge launched its stablecoin product, 'poundtoken'*, the first e-money instrument constituted as a GBP pegged stablecoin issued in the British Isles.
However, on 22 January the island regulator made a public statement concerning the "agreed temporary suspension of the financial services licence"
It said that on 14 January 2025, with the agreement of Blackfridge, the Isle of Man FSA suspended the Class 8 – Money Transmission Services – sub class 2(a) and sub class (4) regulated activity of Blackfridge.
The “agreed temporary suspension” will remain in effect until one of the following events occurs, namely the “agreed temporary suspension” is varied or lifted by the Authority; or the relevant licence permissions are surrendered by Blackfridge; or the relevant licence permissions are revoked by the Authority.
It made the statement in accordance with powers conferred upon it under section 13 of the Financial Services Act 2008.
The regulator said: "The making of such public statement supports the Authority’s regulatory objectives of, among other things, securing an appropriate degree of protection for customers of persons carrying on a regulated activity, reducing financial crime and maintaining confidence in the Isle of Man’s financial services industry. Furthermore, the Authority believes that the making of this public statement is desirable in the public interest."
