Virtual Asset Provider Licence
The Virtual Asset and Initial Token Offering Services Act 2021 (the “Act”) has
come into force on the 7th of February 2022. The Act sets out a
comprehensive legislative framework to regulate the business activities of
virtual assets service providers and initial token offerings. It has been
developed inter alia in accordance with international standards established
by the Financial Action Task Force to manage, mitigate and prevent
antimoney laundering and countering the financing of terrorism risks
associated with these emerging and innovative business activities.
Additional Info
What Are The Benefits Of The Vaitos Act 2021?
Mauritius, as an international financial centre and growing FinTech hub is amongst the first countries in the Eastern and Southern African region which has adopted a comprehensive legislation on Virtual Assets (VA), Initial Token Offering (ITO). The VAITOS Act 2021 will provide a clear and comprehensive basis for operators as FinTech develops in Mauritius, whilst aligning the legal framework for regulating such class of assets with international standards.
Categories of Activities under The Vaitos Act 2021
1. VASP, meaning a person who conducts, as a business activity, for or on behalf of another person one or more of the following activities or operations, namely:
- exchange between VAs and fiat currencies;
- exchange between one or more forms of VAs;
- transfer of VAs;
- safekeeping of VAs or instruments enabling control over VAs;
- administration of VAs or instruments enabling control over VAs; or participation in, and provision of, financial services related to an issuer’s offer and sale of a VA; or an issuer’s offer or sale of a VA.
2. Issuers of ITOs, are companies registered under the Act and making issuance of ITOs. An ITO is an offer for sale to the public of a VA in exchange for fiat currency or another VA.
Type of Licences available under the VASP regime?
Holders of Class M (Virtual Asset Broker-Dealer) licences carry out activities such as exchange between VAs and fiat currencies; or exchange between one or more forms of VAs.
Class O (Virtual Asset Wallet Services) licences pertain to the transfer of VAs.
Class R (Virtual Asset Custodian) licences are responsible for safekeeping of VAs or instruments enabling control over VAs; administration of VAs or instruments enabling control over VAs.
Class I (Virtual Asset Advisory Services) licence is required for the participation in and provision of financial services related to an issuer’s offer and/or sale of VAs.
Virtual asset exchanges must apply for a Class S (Virtual Asset Market Place) licence. A Virtual Asset Exchange is a centralised or decentralised virtual platform, whether in Mauritius or in another jurisdiction which facilitates the exchange of VAs for fiat currency or other VAs on behalf of third parties for a fee, a commission, a spread or other benefit and which:
I. holds custody, or controls VAs, on behalf of its clients to facilitate an exchange or
II. purchases VAs from a seller when transactions or bids and offers are matched in order to sell them to a buyer.
The definition of Virtual Asset Exchange also includes the owner or operator of the virtual platform, but excludes a platform only providing a forum where sellers and buyers may post bids and offers and a forum where the parties trade in a separate platform or in a peer-to-peer manner.