Mauritius
Retail_Trading_Status
- Analysis ID
- #724
- Version
- Latest
- Created
- 2025-12-12 04:51
- Run
- 24ec6030...
- History
- View all versions
- Workflow Stage
- Step 1
Executive Summary
Retail cryptocurrency trading is legal and fully regulated in Mauritius under the Virtual Asset and Initial Token Offering Services (VAITOS) Act 2021. The Financial Services Commission (FSC) actively issues licenses to Virtual Asset Service Providers (VASPs), with at least 11 entities licensed as of late 2025. While cryptocurrency is not legal tender, the Bank of Mauritius has established guidelines allowing banks to service licensed crypto businesses, and individual investors benefit from a favorable tax regime with no capital gains tax on personal holdings.
Key Pillars
Financial Services Commission (FSC) as primary regulator for VASPs
Virtual Asset and Initial Token Offering Services (VAITOS) Act 2021
Bank of Mauritius (BoM) Guidelines on virtual asset-related activities
Financial Intelligence Unit (FIU) oversight for AML/CFT compliance
Tiered licensing system (Classes M, O, R, I, S) for different crypto services
Landmark Laws
Virtual Asset and Initial Token Offering Services Act 2021 (Act No. 26 of 2021) - Enacted: 2022-02-07
- The primary framework governing crypto assets. It defines virtual assets, establishes license categories (broker-dealer, wallet, custodian, advisory, marketplace), and mandates AML/CFT compliance.
- Source
Bank of Mauritius Guidelines on Virtual Asset-Related Activities (BoM Guidelines 2024) - Enacted: 2024-02-01
- Establishes risk management frameworks for banks dealing with VASPs, including enhanced due diligence (EDD) and capital buffer requirements.
- Source
Virtual Asset and Initial Token Offerings Services (Client Disclosure) Rules 2022 (FSC Rules) - Enacted: 2022-01-01
- Mandates that VASPs provide clear, fair, and not misleading information to clients regarding risks and services.
- Source
Considerations
Cryptocurrency is not legal tender but is recognized as a 'digital representation of value'.
No capital gains tax for individuals holding crypto as a personal investment.
Banks are permitted to open accounts for licensed VASPs but apply strict Enhanced Due Diligence (EDD).
Unlicensed exchanges are frequently flagged by the FSC in investor alerts; users are urged to trade only with licensed entities.
Mining is treated as an income-generating activity and subject to standard income tax.
Notes
The analysis assumes the 2025 date provided in the prompt context. The mention of '11 VASPs' indicates a maturing market where the licensing regime is functional, not just theoretical.
Remaining Uncertainties
- Specific leverage limits for retail traders on licensed platforms are not detailed in public summaries.
- The exact number of operational bank accounts for crypto firms remains a practical metric to verify banking fluidity.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and fully regulated in Mauritius under the Virtual Asset and Initial Token Offering Services (VAITOS) Act 2021. The primary regulatory framework is established by this act, enacted on February 7, 2022, which defines virtual assets as a 'digital representation of value' and creates a comprehensive licensing system for Virtual Asset Service Providers (VASPs). The Financial Services Commission (FSC) serves as the primary regulator, actively issuing licenses across several categories, including broker-dealers, wallet providers, custodians, advisors, and marketplaces. As of late 2025, at least 11 entities have been licensed, indicating a functional and maturing market. The Financial Intelligence Unit (FIU) provides oversight for anti-money laundering and counter-terrorist financing (AML/CFT) compliance, which is mandated for all licensed VASPs under the VAITOS Act. The regulatory environment is further supported by the Bank of Mauritius (BoM), which issued guidelines on February 1, 2024, establishing risk management frameworks that permit banks to service licensed crypto businesses, subject to strict Enhanced Due Diligence (EDD) and capital buffer requirements. While cryptocurrency is not legal tender in Mauritius, the regulatory approach is designed to foster a secure and transparent ecosystem. The FSC reinforces this through the Virtual Asset and Initial Token Offerings Services (Client Disclosure) Rules 2022, which mandate that VASPs provide clear and fair information to clients about risks. The FSC frequently issues investor alerts against unlicensed exchanges, urging the public to trade only with licensed entities. From a tax perspective, the regime is favorable for individual investors, as there is no capital gains tax on personal holdings of cryptocurrency. However, mining is treated as an income-generating activity and is subject to standard income tax, illustrating the nuanced application of existing financial laws to different crypto-related activities.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is legal and fully regulated.
* Status is Allowed-Regulated.
* Cryptocurrency is not legal tender but is recognized as a 'digital representation of value'.
II. Key Regulatory Bodies
* Financial Services Commission (FSC): Primary regulator for Virtual Asset Service Providers (VASPs); issues licenses and publishes investor alerts.
* Bank of Mauritius (BoM): Central bank that sets guidelines for banks engaging with licensed VASPs.
* Financial Intelligence Unit (FIU): Oversees AML/CFT compliance for the sector.
III. Important Legislation
* Virtual Asset and Initial Token Offering Services Act 2021 (VAITOS Act):
* Enacted: 2022-02-07.
* Primary framework; defines virtual assets and establishes a tiered licensing system (Classes M, O, R, I, S) for different services like broker-dealer, wallet, custodian, advisory, and marketplace operations.
* Mandates AML/CFT compliance.
* Bank of Mauritius Guidelines on Virtual Asset-Related Activities:
* Enacted: 2024-02-01.
* Establishes risk management, Enhanced Due Diligence (EDD), and capital buffer requirements for banks servicing VASPs.
* Virtual Asset and Initial Token Offerings Services (Client Disclosure) Rules 2022:
* Enacted: 2022-01-01.
* Mandates VASPs provide clear, fair, and not misleading information to clients regarding risks and services.
IV. Compliance Requirements
* VASPs must obtain a license from the FSC under the VAITOS Act 2021.
* Strict AML/CFT compliance is mandatory, overseen by the FIU.
* Banks servicing licensed VASPs must apply BoM Guidelines, including Enhanced Due Diligence (EDD).
* VASPs must adhere to client disclosure rules, providing transparent risk information.
V. Notable Restrictions or Limitations
* Trading with unlicensed exchanges is prohibited and frequently flagged by the FSC in investor alerts.
* Banks are only permitted to open accounts for licensed VASPs and apply strict controls.
* Cryptocurrency mining is treated as an income-generating activity and is subject to standard income tax.
VI. Recent Developments or Notes
* As of late 2025, at least 11 VASPs are licensed, indicating a maturing, functional market.
* Individual investors benefit from a favorable tax regime with no capital gains tax on personal cryptocurrency holdings.
* The analysis context assumes a 2025 timeframe, confirming the licensing regime is operational and not merely theoretical.
Full Analysis Report
Full Analysis Report
Mauritius has established itself as a fully regulated jurisdiction for cryptocurrency through the enactment and enforcement of the Virtual Asset and Initial Token Offering Services (VAITOS) Act 2021. This legislation, which came into force on February 7, 2022, provides a comprehensive legal framework that covers issuance (Initial Token Offerings) and service provision (exchanges, custodians, and wallet providers). The Financial Services Commission (FSC) serves as the primary regulator, overseeing a licensing regime that categorizes services into specific classes, such as Class M for broker-dealers and Class S for marketplaces.
Unlike 'Gray-Zone' jurisdictions where frameworks exist only on paper, Mauritius actively enforces its regime. As of late 2025, the FSC has granted licenses to multiple Virtual Asset Service Providers (VASPs), including major international and local platforms. The regulator maintains a public register of licensees and actively issues warnings against unlicensed entities soliciting Mauritian residents. This operational licensing system confirms the 'Allowed-Regulated' status.
The banking sector's integration with the crypto industry has been formalized through guidelines issued by the Bank of Mauritius (BoM). While cryptocurrencies are not legal tender, the BoM allows financial institutions to service licensed VASPs, provided they adhere to strict Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) standards. This has eased some of the banking bottlenecks historically faced by crypto firms, although banks remain cautious and apply rigorous risk assessments.
For retail investors, the environment is favorable. There are no prohibitions on buying, selling, or holding digital assets. From a tax perspective, Mauritius is attractive: individuals are generally exempt from capital gains tax on crypto holdings, treating them similarly to other personal investments. However, professional trading or mining activities are classified as income-generating and are subject to standard corporate or income tax rates. The combination of clear regulation, active licensing, and tax clarity positions Mauritius as a leading regulated hub in the African region.
Mauritius has established itself as a fully regulated jurisdiction for cryptocurrency through the enactment and enforcement of the Virtual Asset and Initial Token Offering Services (VAITOS) Act 2021. This legislation, which came into force on February 7, 2022, provides a comprehensive legal framework that covers issuance (Initial Token Offerings) and service provision (exchanges, custodians, and wallet providers). The Financial Services Commission (FSC) serves as the primary regulator, overseeing a licensing regime that categorizes services into specific classes, such as Class M for broker-dealers and Class S for marketplaces. Unlike 'Gray-Zone' jurisdictions where frameworks exist only on paper, Mauritius actively enforces its regime. As of late 2025, the FSC has granted licenses to multiple Virtual Asset Service Providers (VASPs), including major international and local platforms. The regulator maintains a public register of licensees and actively issues warnings against unlicensed entities soliciting Mauritian residents. This operational licensing system confirms the 'Allowed-Regulated' status. The banking sector's integration with the crypto industry has been formalized through guidelines issued by the Bank of Mauritius (BoM). While cryptocurrencies are not legal tender, the BoM allows financial institutions to service licensed VASPs, provided they adhere to strict Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) standards. This has eased some of the banking bottlenecks historically faced by crypto firms, although banks remain cautious and apply rigorous risk assessments. For retail investors, the environment is favorable. There are no prohibitions on buying, selling, or holding digital assets. From a tax perspective, Mauritius is attractive: individuals are generally exempt from capital gains tax on crypto holdings, treating them similarly to other personal investments. However, professional trading or mining activities are classified as income-generating and are subject to standard corporate or income tax rates. The combination of clear regulation, active licensing, and tax clarity positions Mauritius as a leading regulated hub in the African region.
Source Evidence
Primary and secondary sources cited in this analysis
"To provide a comprehensive legislative framework to regulate the business activities of virtual assets and initial token offerings."
"Consumers of financial services are also encouraged to consult the Register of Licensees available on the FSC website for persons/entities duly licensed."
"In Mauritius, crypto assets do not have legal tender status... However, they are recognised as having value."
"There are currently 11 VASPs and one ITO licensed in Mauritius."
"If it is treated as capital gains, it will not be subject to any tax given that capital gains are exempt from tax in Mauritius."
Web Sources (3)
Sources discovered via web search grounding
Search queries used (5)
- Mauritius crypto tax laws 2024 2025
- list of licensed crypto exchanges Mauritius FSC
- Bank of Mauritius cryptocurrency regulation retail investors
- FSC Mauritius register of licensed Virtual Asset Service Providers
- Mauritius Virtual Asset and Initial Token Offering Services Act 2021 retail trading status
https://legalbison.com/crypto-license/mauritius/
https://www.cryptoverselawyers.io/crypto-regulation-in-mauritius-vasp-licensing-guide-2025/
https://citizenx.com/insights/crypto-tax-free-countries/