Digital Asset Custodian Licensing Framework to be approved by Mauritius Regulators

As per an official declaration made on the 8th of February, the Mauritian Financial Services Commission (FSC) is planning to launch a regulatory framework with respect to digital asset custodian services.

From March 2019 onwards the stated planned regulation would be effective and hence will need custodian services “to comply with the applicable framework for [Anti-Money Laundering] AML/CFT [combat financing terrorism] in line with international best practices.“

Harvesh Seegolam who is the Chief Executive of the FSC stated that: “The FSC is committed to implementing enabling frameworks which facilitate the development of the Mauritius IFC.”

As per the issued statement, this regulatory framework has been designed basis the recommendations received from the Organisation for Economic Cooperation and Development (OECD) about the governance and regulation of digital financial assets which includes cryptocurrencies.

As per the statement of the regulatory consultant to the FSC, Loretta Joseph, the process of issuing the framework has been “collaborative across industry stakeholders, policymakers and the regulator. ”

Joseph further added that” This regulatory framework reiterates the stance taken over the last year to be a forward thinking and innovative nation that can lead appropriate and sensible regulation for the region. ”

According to the report published in last November 2018, the Mauritian FSC had published their first draft on 5th of November related to such a framework. As per the announcement made during that time, the country’s goal is to implement regulations for custodian services for digital assets so as to ensure an adequate amount of safety with respect to the user’s services.

Further, in October 2017, the State Bank of Mauritius had declared that they would collaborate with Fintech firm SALT (Secured Automated Lending Technology) that would enable them to utilize blockchain assets as collateral for loans.

As per the statement of Pravind Kumar Jugnauth, the prime minister of the Republic of Mauritius: “In revolutionizing 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.”

The framework shall be published in the Government Gazette on March 1st. The announcement made, signifies that digital asset license holders would be required to follow the guidelines issued with respect to the anti-money laundering and counter-terrorism funding rules “in line with international best practices.”