Mauritius FSC Approves Regulatory Framework For Crypto Custody Servicesbr>
The Mauritian Financial Services Commission (FSC) has announced that the regulatory framework for the Custodian Services (Digital Asset) License has been finalized.
The regulatory framework, which will come into effect on March 1, will require crypto custodian services to comply with the applicable framework for Anti-Money Laundering and combat financing terrorism (AML/CFT) in line with international best practices.
“Following the recognition of digital assets as an asset-class for investment by Sophisticated and Expert Investors on 17 September 2018, the FSC issued, on 05 November 2018, a Consultation Paper seeking feedback from stakeholders and the public on the proposed regulatory framework for the Custodian Services (Digital Asset) License, which allows its holder to provide custody services for Digital Assets,” the FSC said. “This regulatory framework will be effective as from 01 March 2019, positioning the Mauritius IFC as the first jurisdiction globally to offer a regulated landscape for the custody of digital assets.”
According to the FSC, the framework has been developed in reference to consultation with the Organization for Economic Cooperation and Development (OECD) on the governance and regulation of digital financial assets. The framework intends to foster further innovation and bring more prosperity to the region.
Harvesh Seegolam, Chief Executive of the FSC, said that the FSC is committed to implementing enabling frameworks which facilitate the development of the Mauritius International Financial Center (IFC).
“We continue to collaborate with our international counterparts and stakeholders in introducing the appropriate regulatory mechanisms,” said Seegolam. “I wish to put on record the active participation of all parties during the consultation phase preceding the introduction of this revolutionary structure for our jurisdiction.”