Mauritius

Disclaimer: This overview of cryptocurrency regulation in Mauritius is provided for informational purposes only and does not constitute legal or financial advice. Regulatory frameworks evolve rapidly, and readers should consult qualified legal professionals and official regulatory bodies for guidance specific to their circumstances.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Cryptocurrencies are legal in Mauritius and regulated as “virtual assets” under the Virtual Asset and Initial Token Offering Services (VAITOS) Act 2021, which came into effect on 7 February 2022. The Bank of Mauritius has stated explicitly that crypto assets do not constitute legal tender and there is no obligation to accept them as payment. Security tokens fall under the separate Securities Act 2005 and are regulated as traditional securities, with the Financial Services Commission determining classification on a case-by-case basis.

Mauritius was among the first countries in Eastern and Southern Africa to adopt comprehensive virtual asset legislation, positioning itself as a progressive jurisdiction for digital asset businesses looking to serve African and international markets.

Tax Treatment

Mauritius does not impose a capital gains tax. The Finance (Miscellaneous Provisions) Act 2024 redefined “securities” under the Income Tax Act to include virtual assets and virtual tokens. Since gains on the disposal of securities are exempt under the Income Tax Act, profits from trading virtual assets are exempt from income tax as of July 2024. If crypto activity qualifies as business or revenue income (such as professional trading or mining operations), it may be taxed at the standard personal rate of 15% or the corporate rate of 15%.

Licensed Virtual Asset Service Providers will benefit from an 80% partial exemption on qualifying income from exchange, transfer, safekeeping, and administration of virtual assets, reducing the effective corporate tax rate to 3%. This measure, announced in the National Budget 2025-2026, takes effect from 1 July 2026 and is subject to meeting substance requirements including physical presence, resident staff, and governance standards in Mauritius.

Regulatory Oversight

Two primary regulators oversee the virtual asset space. The Financial Services Commission (FSC) serves as the main regulator under the VAITOS Act, licensing and supervising VASPs and Initial Token Offering issuers. The FSC sets prudential standards, client disclosure requirements, risk management protocols, custody arrangements, and cybersecurity standards. The Bank of Mauritius regulates banking institutions that interact with VASPs and issued a dedicated Guideline for Virtual Asset-related Activities in November 2024.

The Financial Intelligence Unit receives suspicious transaction reports from VASPs and forwards them to the Financial Crimes Commission (FCC), established in 2023 as the apex agency for detecting, investigating, and prosecuting financial crimes including money laundering related to virtual assets.

Business Environment

Banking Relationships

Banking access for crypto businesses in Mauritius remains a work in progress. While the regulatory framework supports bank-VASP relationships, most commercial banks have been cautious about onboarding virtual asset businesses, particularly for client-facing fiat currency accounts. Some banks are now willing to provide transactional banking services while maintaining strict due diligence procedures.

The Bank of Mauritius guideline issued in November 2024 introduced a structured framework requiring Enhanced Due Diligence, capital buffers, cybersecurity measures, and mandatory risk assessments for banks dealing with VASPs. This formalization is expected to gradually improve banking access as institutions develop standardized processes for working with licensed crypto businesses.

Licensing Requirements

The VAITOS Act establishes five license classes for virtual asset service providers. Class M covers broker-dealers handling exchange orders and OTC trading, with minimum capital of MUR 2 million (approximately USD 45,000). Class O covers wallet services for custodial and non-custodial operations. Class R covers custodian services with minimum capital of MUR 5 million. Class I covers advisory services for investment advice on virtual assets. Class S covers marketplace and exchange platform operations with the highest minimum capital requirement of MUR 6.5 million.

All license classes require a Mauritius-incorporated company directed and managed locally, a physical office, at least two resident directors, an FSC-approved Compliance Officer and Money Laundering Reporting Officer, and a senior executive with three to five years of crypto industry experience. Annual cybersecurity audits became mandatory in 2024. The licensing process typically takes five to nine months from company incorporation to license grant.

Initial Token Offering issuers must register with the FSC at least 45 days before launching, provide a comprehensive white paper, limit offer periods to six months, and grant investors a 72-hour withdrawal right with refunds processed within five working days.

Innovation Support

Mauritius established a Regulatory Sandbox License (RSL) in 2016 through the Economic Development Board, allowing companies to operate in innovative areas before formal legislation exists. The sandbox can issue licenses in as little as 30 days. With the VAITOS Act now in force, many blockchain businesses apply directly for VASP licenses rather than using the sandbox route.

The FSC operates a fintech innovation hub for testing prototypes and establishing international networking platforms. The Bank of Mauritius opened its “Innov8” innovation hub in September 2024, focused on financial and regulatory technology solutions for domestic and regional markets. The Mauritius Africa FinTech Hub positions the country as a fintech gateway between Africa and global markets.

The Bank of Mauritius is also developing a retail Central Bank Digital Currency called the Digital Rupee, with a pilot project launched in January 2024. The central bank has stated that the Digital Rupee will not be a crypto asset but will be pegged to the physical rupee.

Market Characteristics

Adoption Patterns

Mauritius serves primarily as a regulatory and corporate domicile for crypto businesses rather than a consumer-driven market. Its established status as an international financial centre, combined with favorable time zone positioning, an extensive network of double tax treaties, and a skilled multilingual workforce make it attractive to companies seeking a regulated base for serving African and international clients.

Industry Focus

The jurisdiction has attracted custodial service providers, exchange operators, and fintech companies looking for a compliant African base. Mauritius was one of the first jurisdictions globally to issue Custodian Services Licences for digital assets. The five-tier VASP licensing structure accommodates a wide range of business models from advisory services to full marketplace operations, with capital requirements scaled to match operational complexity.

Regulatory Evolution

Mauritius has maintained a consistent trajectory toward comprehensive crypto regulation. The FATF placed the country on its grey list in February 2020 for strategic AML/CFT deficiencies, which also triggered an EU blacklisting. Through intensive legislative reforms, Mauritius was removed from the grey list in October 2021, achieving compliance or large compliance with 39 of 40 FATF Recommendations. The sole remaining partially compliant rating on Recommendation 15 (New Technologies) was directly addressed by the VAITOS Act enacted shortly after.

The 2023-2024 period brought further strengthening through the Financial Crimes Commission Act, amendments to the VAITOS Act, the AML/CFT Miscellaneous Provisions Act amending 16 existing laws, and the Bank of Mauritius guideline for bank-VASP relationships. Mauritius participates in the Africa Cryptocurrency Working Group alongside Ghana, Botswana, Namibia, Nigeria, Kenya, and Zambia, sharing enforcement experience and regulatory best practices across the continent. As a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC), Mauritius contributes to regional efforts on financial regulation while maintaining its own progressive domestic framework.

For Current Information:

• Financial Services Commission (FSC) – Fintech and Innovation
• Bank of Mauritius
• Financial Crimes Commission (FCC)
• Economic Development Board – Regulatory Sandbox
• Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)