In line with an official ‘announcement‘, the Mauritius FSC [Financial Services Commission] had issued 2nd steering note regarding STO [Security Token Offering] regulation.
Within the ‘document‘, the FSC outlined that the security tokens are considered digitally represented securities as explained within the Securities Act of 2005. As a consequence, once the STOs are conducted in or from Mauritius, the offering is regulated by native security laws, together with the necessity for a prospectus.
The regulator conjointly added that, while no STO can take place without its approval, there are exceptions for when a token issuer require authorization. Those exceptions embrace offerings meant for sophisticated investors, expert investors & funds, professional collective investment schemes and specialised collective investment schemes.
The FSC additionally highlights that carrying out monetary services without a license is a criminal offense and also warns investors of the high-risk nature of STOs. The document adds that the investments in STOs aren’t protected by any statutory compensation arrangements within the country.
Moreover, the regulator outlined that it “remains extremely supportive of fintech-related initiatives within Mauritius.”
The document follows a primary ‘steering note‘ from the regulator, issued earlier in the month of Sept. last year, on cryptocurrency as an asset.
As ‘reported‘ earlier in Feb. this year, the Mauritius FSC additionally established a restrictive framework for digital asset based custodian services.
Just last month also, Hong Kong’s securities regulator, the SFC [Securities and Futures Commission], conjointly ‘issued‘ official steering related to STOs.