Virtual Asset and Initial Token Offering Services Act 2021

The Virtual Asset and Initial Token Offering Services Act 2021 (VAITOS Act), which came into force on 7 February 2022, establishes a comprehensive framework for the regulation of virtual asset service providers (VASPs) and initial token offerings (ITOs) in Mauritius, administered by the Financial Services Commission (FSC). It was developed in line with the standards of the Financial Action Task Force (FATF) to manage and mitigate the money-laundering and terrorist-financing risks associated with virtual assets, and positions Mauritius as one of the first African jurisdictions with a dedicated, standalone virtual asset statute. Scope and applicability: the Act applies to persons carrying on virtual asset business in or from Mauritius and to issuers of initial token offerings. It defines categories of VASP activity, including exchange between virtual assets and fiat or other virtual assets, transfer of virtual assets, custody and administration of virtual assets, and participation in financial services related to an issuer's offer or sale of a virtual asset, and creates corresponding classes of licence. Initial token offerings require registration and an approved white paper. Core obligations: a person must hold the appropriate FSC licence before conducting VASP or ITO services. Licensees must meet minimum capital and competency requirements, maintain fit-and-proper officers, segregate and safeguard client virtual assets and funds, implement custody, cybersecurity and risk-management controls, make prescribed client disclosures, and comply fully with AML/CFT obligations and travel-rule requirements. Issuers of token offerings must publish accurate white papers and observe conduct and disclosure standards. Supervision and enforcement: the FSC supervises licensees through reporting, inspection and statutory returns, and may impose conditions, administrative penalties, and suspension or revocation of licences. Carrying on virtual asset business without a licence is an offence. Detailed FSC rules supplement the Act on capital, custody, disclosure, cybersecurity and returns. The VAITOS Act sits alongside the FSC's broader fintech licensing initiatives (peer-to-peer lending, crowdfunding and robotic/AI-enabled advisory services).

1. 1Creates a dedicated FSC-administered licensing regime for virtual asset service providers and initial token offerings
2. 2Defines VASP activity classes: exchange, transfer, custody/administration, and participation in issuer offerings
3. 3Initial token offerings require registration and an approved white paper with conduct and disclosure standards
4. 4Licensees must meet minimum capital/competency, segregate and safeguard client virtual assets and funds, and maintain custody, cybersecurity and risk controls
5. 5Full AML/CFT and FATF travel-rule compliance required
6. 6FSC may inspect, impose penalties, and suspend or revoke licences; unlicensed virtual asset business is an offence