Mauritius Starts Licencing Digital Asset Custodians

As part of its plan to create a world standard Fintech hub, Mauritius is set to start issuing licensing to digital asset custodians.

According to a recent report, the island nation’s Financial Services Commission (FSC) has announced that the framework of the draft rules which was published in November 2018 is now completed and will take effect on the 1st of March.

According to FSC, the framework entail rules governing the licence which allows the bearer to offer custody services for digital assets.

This makes Mauritius the first region to provide a regulated landscape for the custody of digital assets worldwide.

Pravind Kumar Jugnauth, the Prime Minister of the Republic of Mauritius:

“In revolutionising the global FinTech ecosystem through this regulatory framework for the custody of Digital Assets, my Government reiterates its commitment to accelerating the country’s move to an age of digitally-enabled economic growth.”

Although the finalised framework is set to be unveiled at the upcoming Government Gazette which is to take place on the 1st of March, the statement reads that it is compulsory for holders of the digital asset licence to adhere to the anti-money laundering and counter-terrorism funding rules “in line with international best practices.”

The consultation paper which was released in November contained the list of series of stipulations for licences which includes a minimum of reserve assets, CA detailed program for risk management, and statutory reporting and disclosures to clients. Some aspects of this list can, however, be altered in the final version.

According to a recent announcement made by the FSC, it has formed a partnership with the Organisation for Economic Cooperation and Development on the governance and regulation of digital assets and that the effort guided the development of the new licensing rules.