Financial Commission of Mauritius Releases Drafts for Crypto Custodian Services

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As per the official document posted on 5th Nov., the Financial Service Commission (FSC) of Mauritius has released a draft regulation for crypto custodian services.

As per the announcement, the island nation aims to establish a regulation for custodian services for digital assets to allow users of crypto custodian services to have a due level of safety.

As per the draft regulation, the FSC will issue a custodian service license that will enable an entity to operate as a holder of digital assets. To get the license, the holder will be required to comply with anti-money laundering (AML) and counter terrorism-financing (CFT) laws, and the nation’s Financial Intelligence and Anti-Money Laundering Act of 2002 (FIAMLA).

Crypto custodian on Mauritius will further be required to maintain at least 500,000 of Mauritius rupees (MUR) or rough $14000 of ‘unimpaired’ or hard capital. However, a crypto custodian must have a board consisting of at least three directors with one of them being a resident of Mauritius and the requirement of managing an office on the island.

The FSC emphasized that the current version of the regulation is not finalized, further claiming that it will welcome feedback from the industry community. The consultation time-frame will span from 5th Nov. until 30th Nov., as per the document.

As per Israel-based financial trading news agency Finance Magnates, the first application for the license will be the new venture called Hybrid Stock Exchange Corporation Limited (HYBSE). International Marketplace. The new exchange was announced on 6th Nov., by global markets exchange GMEX Group in collaboration with Mauritius International Derivatives and Commodities Exchange (MINDEX) and HYBSE.

In September this year, the FSC issued a document that said that digital currencies were an ‘asset-class’ for the investment by Sophisticated and Expert Investors” that doesn’t have legal tender status.

On 31st August, the FSC issued a warning to a local company dubbed Jennocrypto that purportedly falsely claimed to hold an investment Dealer (Discount Broker) license. The Jennocrypto platform reportedly offered its customers many digital currency-related services, including investments, which is not allowed in Mauritius.