Mauritius and Cryptocurrency
Mauritius Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
In June of 2020, Mauritius released new guidelines for the licensing of ‘security token trading.’[1] The Rules provide that a person carrying out custody services in relation to digital assets in Mauritius should apply to the Financial Services Commission (“FSC”) for a Custodian services (digital asset) license. These services are referred to as Trading Securities Systems (“TSS”) in the guidelines. Key provisions include requirements such as: standards and guidelines regarding cyber security, a minimal capital requirement of 35 million* rupees or an equivalent amount, a board that is always comprised of a minimum of three (3) directors, of which at least one is resident in Mauritius and 30% is/are independent director(s); must at all times perform its core functions from an office in Mauritius and maintain up to date transactional records; must file with the FSC as soon as possible, but (i) no later than 45 days after the closing date of the relevant quarter, its quarterly financial statements, (ii) no later than 90 days of its balance sheet date, its audited financial statements. The guidelines end with a cautionary note to potential investors warning that investors are not protected by any statutory compensation arrangements in Mauritius. Mr. Dhanesswurnath Thakoor, the Chief Executive of the FSC stated in a press release that “the publication of a Guidance Note on Security Tokens Offering (STO) and Security Tokens Trading Systems is another stepping stone in building an open and transparent regulatory regime for Fintech in Mauritius,” and that Mauritius “already has a growing interest for these specific licenses and are expecting to receive several applications in the upcoming months.”[2]
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries:
Is cryptocurrency legal in Mauritius?
Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation, or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.
[1] Financial Services Commission of Mauritius, Communique, “Fintech Series Guidance Notes No. 3 Security Token Offerings and Security Token Trading Systems”
[2] Financial Services Commission of Mauritius, Communique, The FSC issues Guidance Notes with respect to Security Token Trading Systems.
