Vaitos
The VAITOS Act came into force on 7 February 2022 to enable the Financial Services Commission, Mauritius (FSC) to regulate and supervise Virtual Asset Service Providers (VASPs) and issuers of Initial Token Offerings (ITOs) in the non-bank financial services sector in Mauritius.
The VAITOS Act enables any company which intends to conduct business activities in relation to VASPs or issue of ITOs, in or from Mauritius, to apply for a licence or registration from the FSC and operate within a sound prudential and market conduct regime. The Act provides for timely, accurate and transparent disclosures by the issuers of ITOs.
A Virtual Asset (“VA”), according to the VAITOS Act 2021, is a digital representation of value which may be digitally traded or transferred, and may be used for payment or investment purposes, but does not include a digital representation of fiat currencies, securities and other financial assets that fall under the purview of the Securities Act.
The Act provides a comprehensive legislative framework for virtual asset service providers (VASPs) and issuers of initial token offerings (ITOs).
VASP consists of several sub-categories of licences as follows:
- Holders of Class M (Virtual Asset Broker-Dealer) licences carry out activities such as exchange between VAs and fiat currencies; or exchange between one or more forms of VAs.
- Class O (Virtual Asset Wallet Services) licences pertain to the transfer of VAs.
- Class R (Virtual Asset Custodian) licensees are responsible for safekeeping of VAs or instruments enabling control over VAs; administration of VAs or instruments enabling control over VAs.
- Class I (Virtual Asset Advisory Services) licence is required for the participation in and provision of financial services related to an issuer’s offer and/or sale of VAs.
- Virtual asset exchanges must apply for a Class S (Virtual Asset Market Place) licence. A Virtual Asset Exchange is a centralised or decentralised virtual platform, whether in Mauritius or in another jurisdiction which facilitates the exchange of VAs for fiat currency or other VAs on behalf of third parties for a fee.
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