VASP Licensing in Mauritius: A Complete Guide to the Virtual Asset and Initial Token Offering Services Act 2021

Mauritius has established a comprehensive regulatory framework for virtual asset service providers (VASPs) through the Virtual Asset and Initial Token Offering Services Act 2021 (VAITOSA). Any person carrying on or purporting to carry on the business of providing virtual asset services in or from Mauritius must hold a licence granted by the Financial Services Commission (FSC).

Classes of VASP Licence

Section 5 of VAITOSA empowers the FSC to grant licences in different classes. Class M covers broker-dealer services. Class O applies to custodian services. Class R governs administration services. Class S authorises operation of a virtual asset marketplace. Class I permits advisory services. Each class corresponds to a distinct category of virtual asset activity, and an applicant must specify the class for which it seeks authorisation.

Application Requirements

Section 8 of VAITOSA requires an applicant to submit a completed application form, a detailed business plan, evidence that directors and senior officers meet fit and proper criteria, proof of minimum capital requirements, and evidence of compliance and risk management frameworks. The FSC reviews each application and may grant or refuse the licence at its discretion.

Regulated Activities

Section 7 of VAITOSA defines the activities that require a licence. These include exchange between virtual assets and fiat currencies, exchange between one or more forms of virtual assets, transfer of virtual assets, and safekeeping or administration of virtual assets or instruments enabling control over virtual assets.

Practical Guidance

Applicants should ensure their compliance frameworks address anti-money laundering obligations under Section 15 of VAITOSA, which requires compliance with the Financial Intelligence and Anti-Money Laundering Act 2002. Early engagement with the FSC is advisable.

This article is for general information purposes only and does not constitute legal advice.