The Financial Services Commission (FSC) in Mauritius, the island nation’s financial watchdog, today issued a warning stating that two companies called “Cloud Token Mauritius” and “Cloud Token Indian Ocean and Africa” are illegally promoting their products in the country without any regulatory approvals.
Not only did the said firms approach clients without having been authorized by the Mauritius regulator, but they further hosted events in publicly accessible areas in Mauritius to promote their “Cloud Token” mobile application.
A brief review of the social media channels of the aforementioned entities reveals that they offer several cryptocurrency products that entail investing in digital assets. They are not authorized to provide such services in the country.
ATFX Thanks NHS Frontline Workers with 1k Fruit Boxes DonationGo to article >>
Due to the illegal nature of its conduct, “Cloud Token Mauritius” and “Cloud Token Indian Ocean and Africa” have been instructed by the FSC to cease and desist from engaging in finance-oriented activities. Offering services in this manner is a violation of the Mauritian law.
The Mauritian regulator has experienced its share of unlicensed firms operating within its jurisdiction. As the financial world continues to adapt to the growing demand for cryptocurrencies, many institutions are making the necessary adjustments. The FSC is no exception, as the authority has already begun to monitor and assess crypto companies and their respective activity.
Mauritius was for a long time a preferred destination for those interested in operating an offshore brokerage due to the softer financial requirements, which make it a better option than many European jurisdictions.
The benefits list includes limited setup costs, low capital requirements of about €17,000, and a favorable tax regime. But recently it has become increasingly difficult to apply for and obtain a forex licence in Mauritius, to the point that most providers have changed their destination to Belize, despite the higher capital requirements and the more expensive fee structure.