Regulatory Alerts2022-08-25
Guidance Notes on Security Token Offerings and Security Token Trading Systems
The Financial Services Commission of Mauritius has issued updated guidance notes establishing a comprehensive licensing and operational framework for Security Token Offerings and Security Token Trading Systems. The document defines security tokens as digital representations of traditional securities, outlines permissible issuance methods, and mandates that trading systems secure a Trading Securities System licence while maintaining minimum capital, professional indemnity insurance, and robust cybersecurity governance. It further requires licensed entities to implement strict anti-money laundering protocols, data protection compliance, and independent IT audits, while clarifying that investors bear the risks without statutory compensation.
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