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Initial Coin Offering in Mauritius

Initial Coin Offering in Mauritius

Virtual money can be used in various ways, including traded on specialized markets, just like company shares are traded on the stock exchange. Deriving from initial public offerings (IPOs), initial coin offerings (ICOs) are starting to become popular in Mauritius, as new laws are implemented.

If you are interested in launching an ICO in Mauritius, this article is for you. In it, our company formation agents in Mauritius explain the main laws and advantages of trading cryptocurrencies.

The new law on virtual asset offerings in Mauritius

If it were to establish a timeline for the enactment of laws related to creating and trading digital assets, it is important to note that Mauritius started this journey in 2018. At that point the Financial Services Commission (FSC) recognized cryptocurrencies as assets for investment purposes that can be used by professional investors. At the beginning of 2019, the FSC issued the Financial Services (Custodian services (digital asset)) Rules through which it established how virtual coins can be safeguarded.

In 2020, the FSC issued a guide on Security Token Offerings or Mauritius ICOs and the licenses that need to be obtained by the platform operators. In 2021, a consultation on creating a regulatory framework through which fintech service providers (FSP) could be licensed and how they can operate from Mauritius. This has led to the enabling of the Virtual Asset and Initial Token Offering Services Act of 2021.

With such strong rules, it is safe to say that the creation of an initial public offering in Mauritius is possible in well-regulated conditions. Moreover, Mauritius also adhered to the Financial Action Task Force (FATF) for fighting money laundering operations.

Feel free to address our local specialists if you want to open a company in Mauritius. We are also at the service of foreign investors who want to immigrate to Mauritius for the purpose of creating ICOs.

What are the activities that can be rolled out under a Mauritius ICO?

According to the Virtual Asset and Initial Token Offering Services Act, both persons and companies can conduct various types of activities, among which:

  • exchange between virtual assets and regular currencies;
  • exchange between one or more digital assets;
  • transfer of digital coins;
  • the preservation and/or administration of digital assets;
  • participation and provision of financial services in the name of an issuer’s offer;
  • the sale of a virtual asset.

A virtual asset exchange is a platform through which Mauritius initial coin offerings can be made. It can intermediate the exchange of digital coins for fiat currencies, as well as to trade cryptocurrencies to the general public in return for a fee.

Get in touch with our business registration consultants in Mauritius if you want to create a cryptocurrency company. If you need company formation services in other countries, such as Argentina, we can put you in touch with our local partners.

Licenses under which ICOs can operate in Mauritius

There are several licenses that can be obtained when dealing with cryptocurrencies in Mauritius as follows:

  1. the M Class license that is available for virtual asset brokers and dealers;
  2. the O Class license that applies to Virtual Asset Wallet Service providers;
  3. the R Class license that must be obtained by Virtual Asset Custodians;
  4. the S Class license that is required for setting up Virtual Asset Market Places;
  5. the I Class license that applies to Virtual Asset Advisory Service providers

Here are other aspects to consider when creating an initial coin offering in Mauritius:

  • the submission of the licensing documentation must be filed at least 45 days before the first offer is launched;
  • failing to do so may attract a fine of MUR 1 million and even a maximum of 5 years of imprisonment;

For support in launching an ICO, please contact our Mauritius company formation experts.