Mauritius Issues the Custodian Services (Digital Asset) Licence

Mauritius issues the Custodian Services (Digital Asset) Licence

 

With the transformative incidence of financial technology (“FinTech”) on the global financial services industry, one landmark development in the FinTech landscape has been the emergence of Digital Assets and their use as a medium of exchange for transactions over the internet. The recent years have also witnessed significant strides in evolution of the technologies underpinning Digital Assets, including blockchain.

The FinTech and Innovation-driven Financial Services Regulatory Committee of the Mauritius International Financial Centre (“MIFC”) was set up in February 2018 with the aim to position the MIFC as the FinTech hub for Africa.

Following the recognition of Digital Assets as an asset-class for investment by Sophisticated and Expert Investors on 17 September 2018, the FSC has issued regulatory framework for the Custodian Services (Digital Asset) Licence, which allows its holder to provide custody services for Digital Assets.

This regulatory framework is effective since 01 March 2019, positioning the MIFC as the first jurisdiction globally to offer a regulated landscape for the custody of Digital Assets. The FSC has participated fully in discussions at the level of the Organisation for Economic Cooperation and Development (OECD) on the governance and regulation of Digital Financial Assets, and the regulatory framework for the Custodian Services (Digital Asset) Licence has been developed in reference to these international consultations.

 

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