Securities Token Offerings framework
Securities Token Offerings in Mauritius

Securities Token Offerings framework

There is growing importance of Fintech products in the financial services sector. As such, in June 2020 the FSC has brought a new regulatory framework governing Securities Tokens Offerings. 

The aim of the new framework is to provide protection of investors and clear framework for industry operators.

On 11 June 2020, the Commission has issued the Securities (Solicitation) Rules 2020, the Securities (Licensing) (Amendment) Rules 2020 and the Financial Services (Consolidated Licensing and Fees Amendment No. 2) Rules 2020.

On 15 June 2020, the Commission issued a series of Guidance Notes to provide for the implementation of a common set of standards for STO and the licensing of Security Token Trading Systems in Mauritius. 

Security tokens are digital assets which fall into the category of securities as defined under the Securities Act. 

Security Token Offerings represents an alternative way for firms to raise external capital, in exchange for the ownership or economic rights in relation to digital assets.