Regulatory Framework for the Custodian Services (Digital Asset) License

On the 6th of March, 2019, the Financial Services Commission (FSC) issued the Financial Services Custodian Services and Digital Assets rules. In this post, we will analyse the document for explain the technical aspects included in this list of rules. The document gives an overview of the different components that need to considere when engaging in custodian services of digital assets in the Mauritian jurisdiction.

Rules

The rules defined in the document apply to any person or company carrying out custodian services for digital assets. Custodian services are referred to as any services where an entity is entrusted with the custody of a digital asset. Digital assets are defined as any form of token, in electronic or binay form, which represents someone's access rights to a service or ownership of an asset.

Application of custodian licenses are to be done with the FSC via their downloadable form available below.



Should the FSC deem the application suitable based on the requirements of the Custodian licenses rules, it may issue a letter of intent to the applicant. The applicant should then within 6 months demonstrate that it has the required resources, infrastructure and personnel to conduct these custodian services.

License Fees

In a nutshell, the license fees include a processing fee of Rs 175,000 (USD 5,000) and an annual fee of Rs 350,000 (USD 10,000). These fees will come into operation on the 1st March of 2019.