Mauritius to Start Licensing of Crypto Custodians in March
In an announcement Friday, the Republic of Mauritius Financial Services Commission (FSC) said that, after publishing draft rules in a consultation paper in November 2018, the framework has now been finalized and will come into effect on March 1.
Effectively, the framework lays down the rules for a license that allows the holder to provide custody services for digital assets. The move makes the Mauritius the “first jurisdiction globally to offer a regulated landscape for the custody of digital assets,” according to the FSC.
The prime minister of the Republic of Mauritius, Pravind Kumar Jugnauth stated that:
“In revolutionizing 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.
While the final framework is expected to be published in full in the upcoming Government Gazette on 1st of March, the announcement indicates that holders of the digital asset license will be mandated to comply with the anti-money laundering and counter-terrorism funding rules “in line with international best practices.”
The FSC added in today’s announcement that it has already engaged with the Organization for Economic Cooperation and Development on the governance and regulation of digital assets and that the effort guided development of the new licensing rules.
“This regulatory framework reiterates the stance taken over the last year to be a forward thinking and innovative nation that can lead appropriate and sensible regulation for the region,” the regulatory consultant to the FSC Loretta Joseph said.
The new comes after Mauritius’ recognition of digital assets as an asset-class for investment “by sophisticated and expert investors” in September of 2018