Republic of Mauritius Set To Receive World’s First Digital Asset Custody Regulatory Framework

The Republic of Mauritius will on March 1 receive the first digital asset custody regulatory framework in the world.

This was made known by the Mauritius Financial Services Commission (FSC).

The Financial Services Commission of Mauritius (FSC) came to recognise digital assets as an equity for Sophisticated and Expert Investors in September 17, 2018.

To this effect, the FSC issued an advisory paper with the aim of getting public and stakeholder feedback on the proposed Custodian Services (Digital Asset) License regulation.

This license, however, would enable its holder offer custody services for digital assets.

The Prime Minister of Mauritius, Pravind Kumar Jugnauth, while speaking on the project, reiterated his government’s commitment to the growth of digital asset in the country, he said, “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. As an African country, we look forward to fostering further innovation and bringing more prosperity to the region.”

This regulatory framework will make Mauritius the first to create a “regulated landscape for the custody of digital assets. Holders of the Custodian Services (Digital Asset) License will equally have to comply with the applicable framework for AML/CFT, in line with international best practices,” the advice reads.

Support for the Regulatory Framework

Chief Executive of the FSC, Harvesh Seegolam, added that the regulatory framework was duly created by consulting with the Organisation for Economic Cooperation and Development (OECD) on the regulation and governance of digital financial assets.

“The FSC is committed to implementing enabling frameworks which facilitate the development of the Mauritius IFC. We continue to collaborate with our international counterparts and stakeholders in introducing the appropriate regulatory mechanisms,” he said.

Yandraduth Googoolye, the Governor of the Bank of Mauritius, also added that the financial institution is in support of the project.

According to him: “The Bank of Mauritius is supportive of innovation in the financial services sector. Banks, depending on their respective risk appetite, are encouraged to develop business relationships with players in the Digital Assets segment.”

This project is expected to give the Mauritius’ crypto-asset industry a boom in the coming months, as the go-to digital asset investment hub in Africa.

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