Mauritius Financial Regulator Released New Guidelines For Security Token Offerings

by | Apr 11, 2019 | Cryptocurrency, Cryptocurrency News

Mauritius Financial Regulator | New Guidelines |  Security Token Offerings | STO | Regulations

The Mauritius Financial Services Commission (FSC) issues a second guidance note regarding the security token offering (STO) regulations. The document declares that the security tokens are now considered digitally represented securities as defined in the Securities Act of 2005.

Issued on April 8, the FSC new regulation dictates that when STOs are conducted in or from Mauritius, the offering will be regulated by local security regulations, including the requirement for a prospectus.

The regulator further notes that all STOs will require prior approval firm them and with certain exceptions, token issuers will also need authorization. The said exception includes offering that are meant for sophisticated investors, expert funds, expert investors,  professional collective investment schemes, and specialized collective investment schemes.

It was also highlighted in the document that carrying out financial services without a license is a criminal offense. It further warned investors of the high-risk nature of STOs and that investments in STOs are not protected by any statutory compensation arrangement in the country.

The regulator noted before ending that  it “remains highly supportive of Fintech-related initiatives in Mauritius.” The document follows a first guidance note from the regulator that was issued in September 2018, on cryptocurrency as an asset class.

It was reported in February that the Mauritius FSC is planning to establish a regulatory framework for digital asset custodian services.

Read more: Cryptocurrency Exchange Coinbase Introduces Visa Card For UK Users

Image source – Stock Photo Secrets

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