The Virtual Assets and Initial Token Offering Services Act 2021 (hereinafter referred to as the Act) was introduced on 07th February 2022 with an aim to promote Mauritius as an international financial centre of excellence and adapt with the digital revolution.
The Financial Services Commission (“FSC”) is responsible as regulator and supervisor of the activities of virtual asset service providers and issuers of initial token offerings. In addition, the FSC was also granted the power to issue notices and guidelines. In this respect, the FSC has issued an AML/CFT Guidance Notes with respect to the Act on 28th February 2022.
As per the Act, Virtual Assets can be defined as digital representation of value that may be digitally traded or transferred and may be used for payment or investment purposes but does not include a digital representation of fiat currencies, securities and other financial assets that fall under the purview of the Securities Act.
The Act shall apply to any virtual asset service provider, and to any issuer of initial token offerings that carries out its business activities in or from Mauritius.
The Act makes provision for 5 types of licenses that can be issued to a virtual asset service provider:
| Class of licence | Business activities Any virtual asset service provider that conducts one or more of the following business activities – | |
| Class “M” | Virtual Asset Broker-Dealer | – exchange between virtual assets and fiat currencies; or – exchange between one or more forms of virtual assets |
| Class “O” | Virtual Asset Wallet Services | – transfer of virtual assets |
| Class “R” | Virtual Asset Custodian | – safekeeping of virtual assets or instruments enabling control over virtual assets – administration of virtual assets or instruments enabling control over virtual assets |
| Class “I” | Virtual Asset Advisory Services | – participation in and provision of financial services related to an issuer’s offer and/or sale of virtual assets |
| Class “S” | Virtual Asset Market Place | – a virtual asset exchange |
In addition, the virtual asset service provider:
- Must be directed and managed from Mauritius;
- Have its physical office in Mauritius;
- maintain such minimum stated unimpaired capital and such other financial requirements as may be prescribed by the FSC;
- Filing of audited financial statements of the Company after 4 months of the financial year end;
- Ensure that each of its controllers, beneficial owners, associates and officers satisfies the ‘fit and proper’ criteria of the FSC;
- Have in place proper measures for AML/CFT purposes
Issuers of initial token offerings are companies registered under the Act and making issuance of initial token offerings.
Initial token offerings are an offer for sale to the public of a virtual tokens in exchange for fiat currency or another virtual asset.
Issuers of initial token offer are required to:
- Make provision for a white paper, provide full and accurate disclosure of information which would allow potential purchasers to make an informed decision and same must be published on its website.
- Ensure its advertisements with respect to the initial token offerings are accurate and does not contradict in any manner the FSC Rules
- Maintain proper measures in line with AML/CFT purposes.