The island state released a 15-page-document outlining guidelines that will allow security token trading systems to be registered and regulated by the FSC
The Financial Services Commission (FSC), the integrated regulator for the non-bank financial services sector of Mauritius, announced a framework aimed at ensuring more regulatory certainty with regards to security token systems in the country. The regulatory body stated that the move will enable the implementation of a common set of standards for the licensing of Security Token Trading Systems in Mauritius. The FSC released a 15 – page document outlining the new standards coupled with the press release on Monday.
With the release of the new guidelines under section 7(1) (a) of the Financial Services Act 2007, new security token trading systems are eligible to obtain an FSC license. This effectively allows a business to not only put up a security token for sale, but also operate a trading house on the island. Furthermore, the step can be viewed as a crucial milestone towards official recognition of security tokens.
The guidelines also outline strict requirements that license-holders must comply with. License-holders are required to comply with “Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) laws and codes, data protection laws, as well as, on the implementation of good market practice for an efficient, transparent and integrated financial market,” stated the press release. They will also be obliged to publish daily trading data that is subject to review by the FSC.
The guidelines also mandate a licensed security token trading body to have at least 35 million Mauritian rupees ($880,000 USD). They are also required to engage a registered custodian for digital assets and the custody of fiat currency shall be held with a licensed Mauritius bank.
While commenting on the release, Mr. Dhanesswurnath Thakoor, the Chief Executive of the FSC stated that “As part of our core strategy, the FSC is aiming at positioning Mauritius as a regional hub of sound repute in the field of Fintech.”
He declared that “The publication of a Guidance Note on Security Tokens Offering (STO) and Security Tokens Trading Systems is another stepping stone in building an open and transparent regulatory regime for Fintech in Mauritius.” “We already have a growing interest in these specific licenses and are expecting to receive several applications in the upcoming months,” he added.
An FSC spokesperson stated that further regulations regarding security token exchanges will be released later this year. The spokesperson added that the new licensing regime will enable Mauritius to be a crypto-friendly jurisdiction and a regional hub for a security token, not only in neighbouring countries, but also in Africa and India.
This article was originally published by Harshini Nag on CoinJournal