Mauritius: crypto & digital assets regulation

Who regulates

• Financial Services Commission

  Primary regulator for VASPs, ITO issuers, and digital asset custodians

  ^{[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20]}

• Bank of Mauritius

  Prudential supervisor for licensed banks engaging in virtual asset activities

  ^[1]

Core laws & rules

• Virtual Asset and Initial Token Offerings Services Act (2021)

  Establishes the primary licensing and regulatory framework for VASPs and ITO issuers, including capital, custody, and operational requirements.

  ^[6][7][16]

• Financial Services (Custodian Services for Digital Assets) Rules (2019)

  Pre-dates the 2021 Act but established the initial licensing framework for digital asset custodians, requiring local offices and minimum capital.

  ^[19][20]

• Financial Institutions (Anti-Money Laundering and Combating the Financing of Terrorism) Act (2002)

  Designates VASPs and ITO issuers as financial institutions subject to AML/CFT obligations including customer due diligence.

  ^[9]

Licensing & registration

• Virtual Asset Service Provider (VASP)

  Requires licensing for entities providing virtual asset services, subject to capital, custody, cybersecurity, and AML/CFT rules.

  ^{[16][12][13][9]}

• Initial Token Offering (ITO) Issuer

  Requires licensing and regulatory approval for public offerings, with exemptions for sophisticated investors.

  ^[6][7]

• Digital Asset Custodian

  Requires a dedicated license with local office requirements, senior representatives, and minimum capital thresholds.

  ^[19][20]

Restrictions & warnings

• Security tokens are regulated as traditional securities under the Securities Act, requiring prior regulatory approval for public offerings.

  ^[3][8]

• NFTs used for payment or investment are regulated, while digital collectibles not used for these purposes are exempt.

  ^[5]

• Strict custody rules mandate segregated or omnibus holding of client assets with express written consent for any use.

  ^[12]

• Advertisements must be fair, clear, accurate, and properly balanced, with specific disclosure obligations for clients.

  ^[14][11]

Direction of travel

• The FSC maintains an active regulatory sandbox for fintech innovation, indicating a supportive stance towards new financial technologies.

  ^[2]

• Recent amendments to administrative penalty rules and fee structures suggest ongoing enforcement and standardization of the regulatory framework.

  ^[4][10]

Sources

1. Guideline for Virtual Asset related Activities · 2024-11-13
2. Regulatory Sandbox Guidelines · 2023-10-31
3. Guidance Notes on Security Token Offerings and Trading Systems · 2023-01-01
4. Financial Services (Administrative Penalties) (Amendment) Rules 2023 · 2023-01-01
5. Guidance Notes on the Regulatory Treatment of Non-Fungible Tokens · 2022-11-30
6. Guidance Notes on Security Token Offerings · 2022-08-25
7. Guidance Notes - Recognition of Virtual Asset as an Asset Class for Investment by Sophisticated and Expert Investors · 2022-08-25
8. Guidance Notes on Security Token Offerings and Security Token Trading Systems · 2022-08-25
9. AML/CFT Guidance Notes for Virtual Asset Service Providers and Issuers of Initial Token Offerings · 2022-07-04
10. Financial Services (Consolidated Licensing and Fees) (Amendment No. 2) Rules 2022 · 2022-01-01
11. Virtual Asset and Initial Token Offerings Services (Client Disclosure) Rules 2022 · 2022-01-01
12. Virtual Asset and Initial Token Offerings Services (Custody of Client Assets) Rules 2022 · 2022-01-01
13. Virtual Asset and Initial Token Offerings Services (Cybersecurity) Rules 2022 · 2022-01-01
14. Virtual Asset and Initial Token Offerings Services (Publication of Advertisements) Rules 2022 · 2022-01-01
15. Virtual Asset and Initial Token Offerings Services (Travel) Rules 2022 · 2022-01-01
16. Virtual Asset and Initial Token Offerings Services (Capital and Other Financial Requirements) Rules 2022 · 2022-01-01
17. Virtual Asset and Initial Token Offerings Services (Risk Management) Rules 2022 · 2022-01-01
18. Virtual Asset and Initial Token Offerings Services (Statutory Returns) Rules 2022 · 2022-01-01
19. Financial Services (Custodian Services for Digital Assets) Rules 2019 · 2019-01-01
20. Financial Services (Consolidated Licensing and Fees) (Amendment) Rules 2019 · 2019-01-01