It has since been revealed that the CTS decision was made under pressure from London-based banking giant HSBC. According to bitcoin advocate R. Paul Davis, speaking at yesterday’s Crypto Valley Summit in the Mann capital of Douglas, “HSBC closed CTS’ corporate accounts because it objected to bitcoin transactions flowing through it.” As the second largest bank in the world, and with a long track record of turning a blind eye to billions of dollars in money laundering, HSBC’s attitude towards bitcoin seems particularly ironic.
Yesterday, Mann’s bitcoin businesses received some much-needed good news. High-risk and offshore credit card processing company Instabill announced that it will offer processing services to digital currency businesses on Isle of Man. Instabill’s offer is a mixed one, however, as the company’s fees are considerably higher than a traditional bank, meaning many companies would need to completely overhaul their marginal pricing schemes to take advantage of the service.
There is one other piece of good news, however. Earlier today, the Isle of Man announced a plan that would allow businesses and residents to pay their taxes in bitcoin. If approved, the plan could take effect later this year.