Over the past couple of years, digital assets have been a disruptive force in the financial services industry. Mauritius is positioning itself as the FinTech hub, in and for, Africa and has achieved significant progress as at date. For recall, in September 2018, the Financial Services Commission (FSC) has confirmed its recognition of Digital Assets as an asset-class for investment by Sophisticated and Expert Investors through its FinTech Series Guidance Note.

Subsequently in November 2018, the FSC circulated a Consultation Paper seeking feedback from stakeholders and the public on the proposed regulatory framework for the Custodian Services (Digital Asset) Licence, which allows its holder to provide custody services for Digital Assets (the “Regulatory Framework"). The Regulatory Framework was developed following international consultations with the Organisation for Economic Cooperation and Development (OECD) and will be effective as from 1 March 2019.

Holders of the Custodian Services (Digital Asset) Licence will have to comply with the applicable framework for AML/CFT, in line with international best practices.

The FSC issued a communiqué on the Regulatory Framework earlier this month and this may be accessed here.