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Mauritius is willing to adapt distributed ledger technology and acknowledge the cryptocurrency as digital asset
Sep 20, 2018
Mauritius is one of the well-known financial centers. Being focused on a lasting economic growth, Mauritius is willing to advance traditional industrial development with an innovative approach. The Republic has admitted that the current digital revolution grants opportunities for smaller economies (for instance Mauritius) to open new and innovative growth perspectives. For this reason, Mauritius is embracing blockchain technologies and acknowledges cryptocurrencies as digital assets to become the Financial Technology (FinTech) Hub for Africa.
Prime minister of Mauritius, Pravind Kumar Jugnauth, said that Mauritius is moving faster to an age of digitization and the implementation of the above-mentioned technologies and assets would only accelerate this process. Mauritius considers innovations, specifically in the field of artificial intelligence (AI) and FinTech, along with blockchain technologies, as a method of increasing private investment and employment.
As you may know, Mauritius announced its “Three Year Strategic Plan 2018/2019 – 2020/2021” earlier this year. The goal of this plan, among other things, is to pursue the shift to a digital and cashless environment. This process embraces promotion of FinTech, especially including blockchain technologies, to create a platform for the trading of digital assets. Considerably, an essential item under the Strategic Plan is the introduction of a robust regulatory framework for FinTech companies.
To supply investors with a stable environment for the secure storage of digital assets and accredit the exchange of digital assets, the Mauritius’ Financial Services Commission (MFSC) will announce two new licensable activities, specifically:
- Custodian of Digital Assets License;
- Digital Asset Marketplace License.
The MFSC will adopt the guidelines for investment in cryptocurrencies as digital assets. Appropriate cyber security measures, cyber resilience policies and capacities in place will be a requirement for all FinTech activities applicants.
The representatives of Mauritius also stated that National Regulatory Sandbox License Committee is due to be setup in the nearest future. The above-mentioned organization will be formed from representatives of the Bank of Mauritius (BoM), MFSC, Mauritius’ Economic Development Board (EDB) and Financial Intelligence Unit.
The KYC policies also will be updated for both banking and non-banking financial services to be compatible with new developments in FinTech.
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