In an announcement, the Financial Services Commission aka FSC recently published their draft rules presenting a consultation paperback in November, last year. However, the framework is now finalized to come into action by March 1, 2019.
Moreover, the framework presents the rules for a license which will let the holder offer custody services specifically for digital assets. According to the FSC, this step makes Mauritius an initial global jurisdiction which provides a regulated landscape respectively for the digital assets custody. On the other hand, the prime minister of the Republic of Mauritius, Pravind Kumar Jugnauth mentions:
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.
He specifies that the full and final framework will publish during the upcoming Government Gazette on March 1. Moreover, the news report indicates digital asset holders that their license will be mandatory.
Also, they need to comply with the AML aka anti-money laundering and CTF aka counter-terrorism funding regulations which work in line with international best practices.
Although they are likely different with regards to some aspects considering its final form, the consultation paper from November mentions a stipulations series for licensees. Some of them involve disclosures to clients, statutory reporting, minor reserve assets and “comprehensive” program related to risk management.
Meanwhile, the custodians need to follow their guidelines required to store keys and seeds for the digital asset, examine some security procedures specific for assets’ onsite cold storage. They must have in place an entire system for detecting and reporting any suspicious transactions, according to the draft.
Also, the FSC adds about its engagement with the Organisation for Economic Cooperation and Development regarding their governance and regulation for crypto assets. Moreover, they are looking for the efforts guided development relating their new licensing rules.
According to the FSC regulatory consultant, Loretta Joseph, this process is also going around collaborative over the industry policymakers, stakeholders, and the regulator. He also states:
This regulatory framework reiterates the stance taken over the last year. Moreover, this is a forward thinking and innovative nation that can lead appropriate and sensible regulation for the region.