The Isle of Man suspended the license of the firm behind Poundtoken, the first GBP-pegged stablecoin in the UK. In a statement on Tuesday, the Isle of Man Financial Services Authority confirmed it had temporarily suspended the financial services license of Blackfridge SC Limited. In a statement, a spokesperson for the authority said:

“On 14 January 2025, with the agreement of Blackfridge, the Authority suspended the Class 8 – Money Transmission Services – subclass 2(a) and subclass (4) regulated activity of Blackfridge. The “agreed temporary suspension” will remain in effect until one of the following events occurs:

“(a) the “agreed temporary suspension” is varied or lifted by the Authority; or (b) the relevant licence permissions are surrendered by Blackfridge; or (c) the relevant licence permissions are revoked by the Authority.”

It comes two years after Blackfridge was awarded a license by the Isle of Man authorities to issue electronic money, which was shortly followed by the firm’s launch of Poundtoken, a stablecoin linked to the British Pound. On Thursday, the official Poundtoken and Blackfridge SC websites appeared to be offline.

Documents obtained from the Isle of Man Companies Registry showed in its most recent annual return Blackfridge FC showed the firm declared zero debts with £775,000 worth of nominal share capital – in excess of the £750,000 mandated by its license.

The Isle of Man FSA further said on its website that Blackfridge’s license had been suspended “Due to the licence holder ceasing to employ persons competent to undertake the regulated activity and being unable to comply with the Authority’s regulatory requirements.”

It comes less than three years since Blackfridge SC won approval for its Poundtoken, as well as support schemes and grants provided by the Isle of Man government. In 2022 Blackfridge CEO Alan Sun thanked the authorities for their support of his company. He said:

“We are extremely excited to have been granted the licence by the Isle of Man Financial Services Authority, allowing us to launch our GBP-pegged stablecoin. The Isle of Man has a unique approach to regulation and this was enticing when choosing which jurisdiction to base ourselves in.

“The support we have received through the application has made the process simple and efficient. Furthermore, the support schemes and grants provided by the Government during the pandemic have enabled us to reach this monumental stage.”

At the time CNBC reported that: “Poundtoken is designed to incorporate the strengths of a regulated financial product with the benefits of blockchain technology and smart contracts.

“As a stablecoin, its value is never expected to rise significantly above the GBP. Therefore, GBPT is not so much for investment purposes as it’s a store of value, medium of exchange, and tool for cost-efficient and speedy international payments and settlements.”

However, with Blackfridge’s license suspended the future of its crypto venture now looks in doubt. Less than three years ago its stablecoin project was heralded as a great innovation – and now it remains unclear when, or if, the firm will have its license restored. Blackfridge SC could not be reached for comment.