The boss of a thriving bitcoin business has welcomed the formation of a blockchain office in the island.

Danny Scott, chief executive of CoinCorner, spoke after Digital Isle of Man announced the initiative.

The office is being established to guide blockchain businesses through current (and future) regulatory landscapes, with expert-led assistance and support.

Mr Scott said: ‘The Isle of Man Government has always been very supportive of the industry.

‘As one of the first bitcoin exchanges to be established on the island, CoinCorner has been fortunate to work closely with the Government on a number of key projects including drafting the current virtual currency business’ guidelines.

‘Being located here has given us strong foundations and it’s great to see innovation continue in an industry with such potential.’

Lyle Wraxall, chief executive of Digital Isle of Man said: ‘With the launch of the Blockchain Office and Sandbox, the Isle of Man is making a firm commitment to be a fully supportive jurisdiction for the blockchain industry.

‘We are looking to attract premium blockchain businesses and the world’s top exchanges to the island, and we will be creating new tech-agnostic regulation inspired by best practice that we’ve seen from other high-quality jurisdictions around the world.’

Daphne Caine MHK, Political Member for Digital Isle of Man said: ‘The Isle of Man – which was among the first jurisdictions in the world to establish a regulatory environment for virtual currencies – has been home to leading exchanges since 2013, and is the headquarters of blockchain businesses including CoinCorner, Quanta, Luckbox and Qadre.

‘The creation of the Blockchain Office solidifies our commitment to maintaining our reputation at the forefront of innovation and emerging technologies and responding quickly to new business models.

‘It is encouraging to see that the sector is supported by a community of legal, accountancy and fiduciary firms, service providers and advisors, and the island’s long-established financial services and eGaming sectors act as a strong foundation for the industry.’

The primary function of the office will be to facilitate a dialogue between businesses and local and international regulators, and to help blockchain platforms design and future-proof their concepts in accordance with regulation.

The office will also provide expertise, guidance, and marketing support, as well as facilitate and encourage collaboration between companies. Through the Blockchain Office, businesses will be able to apply to participate in the so-called Isle of Man Blockchain Sandbox. Applications for the Sandbox will be open from March with the office fully functional in the spring.

Early participants will not be charged fees for the facility, which will provide them with access to an environment where they can develop and test blockchain platforms.

They will also have access to other international sandboxes through the Isle of Man’s Sandbox. A ‘robust’ selection process will also ensure that all participants are of the highest quality, as the island seeks to create a ‘centre of excellence’ ecosystem.

Blockchain is a technology that builds databases and ledgers of information that are permanently fixed online.

It cannot be tampered with, giving potential application use for financial services, government and e-gaming, and can be updated indefinitely.

Blockchain is the technology, how it is used depends on the business model and application.