Business 11 February 2019

Admir Aljic

Regulatory framework for crypto custodian license coming to Mauritius

Following up on a report by the Regulatory Committee on FinTech and Innovation-Driven Financial Services, the Financial Services Commission (FSC) has taken another step toward making the Mauritius International Financial Centre (Mauritius IFC) Africa’s fintech hub.

Digital assets were recognized as asset class for investment on September 17, 2018, and that was followed by a consultation paper that sought feedback from stakeholders and the public regarding regulatory framework for the Custodian Services (Digital Asset) License. This will allow its holder to offer custody services for digital assets.

The regulations will come into effect on March 1, 2019, making the Mauritius IFC the world’s first regulated jurisdiction for the custody of digital assets, according to the government agency. Those who possess the Custodian Services (Digital Assets) License will need to comply with anti-money laundering/combating the financing of terrorism (AML/CFT) framework in keeping with international best practices. One of the requirements they will need to meet is a minimum reserve of 500,000 Mauritius rupees ($14,600). They will also be required to maintain a board consisting of no less than three participants with one of them being a Mauritius resident. A physical office must operate within the country.

Holders will be considered ‘financial institutions’ and as such, they will have to enforce anti-money laundering provisions such as know your customer programs like any mainstream financial institution. Custodian services protect cryptocurrency holdings on behalf of an institution’s investors. The regulations were drafted to specifically address cryptocurrency custodian services at a time when demand for custodian services is on the rise because of more institutional and regulated investors beginning to invest in cryptocurrencies. There has already been a lot of interest in applying for the license.

The island nation boasts established financial services as well as information and communications technology. It only seems logical that blockchain and financial technology comes next. A recent “Doing Business” survey conducted by the World Bank found that Mauritius has the most business-friendly climate in the region. The rankings consider such things as the ease of starting a business, enforcement of contracts, obtaining credit, and protection for investors.

The FSC’s chief executive, Harvesh Seegolam stated, “The FSC is committed to implementing enabling frameworks which facilitate the development of the Mauritius IFC.” He then acknowledged the active participation of all parties that took part in the consultation phase that occurred prior to the introduction of the new framework.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

Japan’s Zaif crypto exchange resumes services under new management

Business 3 hours ago

Japan’s Zaif crypto exchange resumes services under new management

The Japanese cryptocurrency exchange Zaif announced that it is resuming its activities under new management, several months after falling victim to a hack.

Read More
Jimmy Nguyen: Bitcoin SV is about a viable blockchain ecosystem

Business 4 hours ago

Jimmy Nguyen: Bitcoin SV is about a viable blockchain ecosystem

At the recent Paris Blockchain Summit 2019, Bitcoin Association Founding President Jimmy Nguyen sat down for a wide-ranging interview and covered many of the hottest topics in the Bitcoin industry from the last few weeks.

Read More
Afghanistan considers turning to crypto bonds to rebuild

Business 4 hours ago

Afghanistan considers turning to crypto bonds to rebuild

Afghanistan has been decimated by decades of conflict, and it is considering turning to cryptocurrency as perhaps its only resort to rebuild .

Read More
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]