Crypto License in Mauritius
With its significant financial advantages and robust regulatory framework, Mauritius remains a thriving hub for fintech innovation. Wondering how to lawfully join the Mauritian cryptocurrency market and grow your business? That’s when the assistance of Fintech Harbor Consulting LTD comes in handy, letting you increase the chances of your application’s approval and grow your influence in the local market. Benefit from Mauritius’ financial advantages and stability.
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What Is a Crypto License in Mauritius and Why Would You Need It?
An official permit to handle digital-asset-related operations in the region is what we call a Mauritius crypto license. It is issued by the Financial Services Commission (FSC), which ensures your legal performance in the blockchain and cryptocurrency market. This license ensures a clear pathway for blockchain projects, digital asset wallets, crypto exchanges, and other platforms to achieve unparalleled operational flexibility, legitimacy, and market access.
With proper licensing in Mauritius, your company is authorized to provide the following services:
- Exchange between virtual assets and fiat currencies in various formats
- Facilitation of trading activities
- Provision of liquidity to the market
- Execution of client orders
- Delivery of market-related services, including analytics and insights.
With a crypto license issued by the FSC, your business can operate in Mauritius as well as in countries where crypto-related activities aren’t specifically regulated under the local laws. Keep in mind that Mauritius’ crypto licensing doesn’t permit the custody and safekeeping of client funds or virtual assets.
Types of Crypto Licenses in Mauritius
Our team will ensure you select the right contract tailored to your operations in the digital asset environment. You can support your business model with one of the following licenses within the island’s regulatory framework.
License Type | Purpose | Activities Allowed |
M — Market Maker | Crypto Trading | Exchanging virtual assets & fiat currencies in different variations |
O — Wallet Provider | Digital Asset Transfers | Managing centralized crypto wallets and facilitating virtual asset transfers |
R — Custodian | Secure Storage | Holding and safeguarding digital assets on behalf of clients |
I — Advisory Services | Crypto Consultancy | Providing professional guidance on virtual asset investments and trading strategies |
S — Exchange Operator | Digital Asset Marketplace | Running platforms for trading and exchanging cryptocurrencies |
The M license is the most popular choice as its functionality works for most crypto business needs. It is best suited for OTC desks and liquidity providers, non-custodial crypto trading platforms, algorithmic market makers and quant desks, institutional brokers, B2B crypto facilitators, and analytics and insights platforms with an execution layer. Meanwhile, the M-class license is not suitable for custodial exchanges or platforms holding user funds, wallet providers with a custody function, and crypto lending platforms.
Besides the direct exchange between fiat currencies and virtual assets, this licensing also offers the following:
- Deals related to market analysis and other services
- Order execution
- Liquidity provision
- Trading facilitation
- Exchange between virtual assets.
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Requirements for Obtaining a Crypto License in Mauritius
The process of getting a Mauritius crypto license, in terms of its efficiency and complexity, mainly depends on whether you meet the target project’s specifications. To secure your successful authorization process, make sure to meet the following Mauritius crypto license requirements:
- Company incorporation: The entity must be incorporated in Mauritius to carry out its activities within the jurisdiction.
- Local representatives: You must hire two local directors to back up your office’s performance and compliance with the required norms and regulations.
- Money Laundering Reporting Officer (MLRO): In the best-case scenario, you gain a local one. You can arrange it upon request. Our lawyers have got your back here.
- Required internal policies: Implement the latest policies related to Anti-Money Laundering (AML), Counter Financing of Terrorism (CFT), and Know Your Customer (KYC), and keep your records accurate and protected.
- Share capital: The minimum requirement is $45,000 of non-frozen funds for businesses aiming at an M-class license. It must be fully paid to meet the physical office conditions under the M-class licensing.
Besides the legal requirements for your efficient licensing journey, here is the list of the necessary documents you’ll need to prepare for the application:
- Business plan
- Due diligence documents for directors and shareholders.
- Curriculum Vitae (CV)
- Bank reference letter
- Certified copy of passport
- Certified police criminal certificate
- Certified tax certificate
- Certified proof of address.
Our legal professionals will support you with your document preparation and make sure your company meets all the compliance requirements along the way. While the legal nuances in Mauritius are numerous, we’ve got you covered.
Process of Getting a Crypto License
The licensing process in Mauritius involves several key steps and requires the applicants to pay close attention to detail to secure their successful authorization in the crypto market. To make this journey as efficient and streamlined as possible, our lawyers will help you prepare your documentation, interact with Mauritian authorities, and more. We offer a personalized strategy for every client, ensuring your application for a Mauritius crypto exchange license.
Here is the licensing procedure you’ll deal with as you plan to obtain your authorization:
- The first step is to sign the Service Agreement to officially begin your application process.
- Next comes your company incorporation, which typically takes up to 7 working days. It includes registering a local office and appointing at least two residents to perform the duties of your company’s directors.
- Open a share capital account. This step usually takes 1 month or longer.
- Complete the application form, ensuring the high-end quality of your documentation and internal compliance with KYC and AML policies. Submit your business plan along the way.
- Complete compliance assessments and wait for your application’s approval. Keep in mind that the regulator may request additional documents at this stage if needed.
- Upon the final approval of your crypto license, you’ll proceed with your C2B account opening and receive a set of documents confirming your authorization to offer services in Mauritius, including your license, a certificate of incorporation, your AML and KYC policies, regulatory compliance documentation, and official corporate documents. It typically takes between 3 and 6 months to get your license approved and issued. Yet, the duration of this stage depends on the completeness of your documents.
- Once it is done, you can start your business in Mauritius.
The entire process from signing the service agreement to obtaining your permit usually takes up to 6 months.
Regulation of Cryptocurrency in Mauritius
Crypto Taxes in Mauritius
While Mauritius crypto tax policies depend on your business structure and activities, the key rules are applicable. Here is what you need to know — check the table below.
Tax Category | Rate & Details |
Capital Gains Tax | No tax on capital gains or digital-asset transactions (required for crypto-related projects) |
Corporate Income Tax | 3% effective CIT because of tax exemptions for licensees |
Withholding Tax | Not applicable to crypto-related income |
Personal Income Tax | 10%-15%, depending on income level |
Why Choose Mauritius for Obtaining a Crypto License?
Mauritius crypto license registration will come in handy for several reasons:
- Regulated & compliant: Obtain your license under the Virtual Asset and Initial Token Offering Services Act 2021, aligned with FATF AML/CFT standards. It allows you to avoid regulatory issues and ensure compliance with Mauritius’ financial laws to expand or establish your business.
- The banking system’s benefits: The local financial environment offers more top-tier banking solutions for banking projects, including C2B/B2B accounts with local banks and EU crypto-friendly EMIs. Licensed companies have an easier time opening bank accounts, handling transactions, and benefiting from the local banking system.
- Strategic location: Has an ideal time zone for accessing the African, Asian, and European markets.
- Support for innovation: Mauritius is a progressive regulator supporting the ongoing fintech development and digital finance.
- Enhanced international reputation: Under the FSC’s oversight, Mauritius’ well-regulated legal framework is known among international investors for its stability and transparency.
- Favorable tax & setup conditions: Mauritius offers a competitive tax environment for financial businesses, with 0% capital gains tax, no exchange controls, efficient company formation, and access to over 44 DTA agreements.
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FAQ
How long does it take to get a Mauritius crypto license?
Overall, this period takes under 6 months. Delays may occur if you don’t comply with the procedure’s requirements, and depending on the completion of your documents. That’s why consulting with our team comes in — we minimize the risk of mistakes and issues by guiding you through every step of the application process and considering all the regulatory nuances of your selected jurisdiction.
What are the costs of obtaining a crypto license in Mauritius?
The total Mauritius crypto license cost includes the professional and legal fees, expenses for corporate services, bank account opening, and annual maintenance. Overall, the license setup and first-year fees are $55,100 in total. However, the total cost of your license, with all additional fees, varies depending on your specific situation. That’s why it is advised to contact our legal experts for the most accurate prices.
What are the tax implications for crypto businesses in Mauritius?
Mauritius provides remarkably favorable tax conditions for crypto businesses. This jurisdiction has signed DTAAs with 44 countries, which allows for efficient tax planning and reduced withholding taxes. First and foremost, this jurisdiction applies 0% capital gains tax and 0% withholding tax. Besides, Mauritius applies a flexible corporate income tax (CIT), which can be reduced from 15% to as low as 3% through available tax exemptions and partial reliefs. Our legal experts will help you understand all the tax-related nuances and help you benefit from potential exemptions.
Do I need to have a local office or company to apply for a Mauritius crypto license?
Yes, you do. It’s a must for any business interested in distributing its cryptocurrency and blockchain services in the market. We will also assist in outsourcing reputable local representatives for your company to comply with the two-local-directors requirement for a crypto license in Mauritius.
