Mauritius will quickly license electronic asset custodians as component of its strategy to create a fintech hub “in and for” Africa.
In an announcement Friday, the island nation’s Financial Companies Fee (FSC) stated that, soon after publishing draft procedures in a session paper in November 2018, the framework has now been finalized and will arrive into influence on March 1.
In influence, the framework sets out the procedures for a licence that makes it possible for the holder to supply custody products and services for electronic assets. The shift helps make the Mauritius the “first jurisdiction globally to provide a controlled landscape for the custody of electronic assets,” according to the FSC.
Pravind Kumar Jugnauth, prime minister of the Republic of Mauritius said:
“In revolutionising the international FinTech ecosystem by way of this regulatory framework for the custody of Digital Belongings, my Govt reiterates its commitment to accelerating the country’s shift to an age of digitally-enabled economic advancement.
Whilst the final framework will be posted in full in the approaching Govt Gazette on March 1, the announcement suggests that holders of the electronic asset licence will be mandated to comply with the anti-money laundering and counter-terrorism funding procedures “in line with intercontinental most effective methods.”
Whilst most likely transformed in some facets in its final kind, the November session paper lists a series of stipulations for licensees, including statutory reporting and disclosures to customers, a bare minimum of reserve assets and “comprehensive” program for threat management.
Custodians would also have to follow pointers for storage of electronic asset keys and seeds, show protection procedures for onsite cold storage of assets and have in area a procedure for detection and reporting of suspicious transactions, as per the draft.
The FSC extra in today’s announcement that it has engaged with the Organisation for Economic Cooperation and Development on the governance and regulation of electronic assets and that the effort and hard work guided progress of the new licencing procedures.
The method has also been “collaborative throughout market stakeholders, policymakers and the regulator,” Loretta Joseph, regulatory advisor to the FSC, instructed Bit-coinTalk.
“This regulatory framework reiterates the stance taken in excess of the previous year to be a ahead contemplating and modern nation that can guide suitable and wise regulation for the region,” Joseph stated.
The new arrives soon after Mauritius’ recognition of electronic assets as an asset-class for investment “by innovative and skilled investors” in September 2018,
Port Louis, Mauritius image via Shutterstock