The Virtual Asset and Initial Token Offering Services Act 2021 was proclaimed on 7 February 2022, the Financial Services Commission has announced.
The Act sets out a legislative framework to regulate the business activities of virtual assets service providers and initial token offerings.
According to the FSC, it has been developed in accordance with standards established by the Financial Action Task Force to manage, mitigate and prevent anti-money laundering and countering the financing of terrorism risks associated with these emerging and innovative business activities.
A Virtual Asset, according to the VAITOS Act 2021, is a digital representation of value which may be digitally traded or transferred, and may be used for payment or investment purposes, but does not include a digital representation of fiat currencies, securities and other financial assets that fall under the purview of the Securities Act.
The FSC has called out those currently carrying out the business activities of a virtual asset service provider or an issuer of initial token offerings in accordance with the Act; or custodians (digital assets), to apply for a licence or registration with the FSC not later than 3 or 18 months after the commencement of the Act, respectively.
The FSC also warned that is an offence for any person to carry out the business activities of a virtual asset service provider or an issuer of initial token offerings in or from Mauritius without an appropriate licence issued by the FSC.
In accordance with Sections 7(2) and 23(2) of the Act, any person found in contravention thereof shall commit an offence and be, on conviction, liable to a fine not exceeding 5 million rupees and to imprisonment for a term not exceeding 10 years.
