The Financial Services Commission (FSC) in Mauritius, the island-nation’s financial watchdog, today issued a warning stating that a company calling itself Jennocrypto is falsely claiming to hold an Investment Dealer (Discount Broker) licence.
Not only did the broker approach clients without having been authorized by the Mauritius regulator, but it further falsely claims approval from the UK Financial Conduct Authority (FCA) and the Malta-Cyprus Securities and Exchange Commission.
A brief review of the Jennocrypto website reveals that the broker offers its clients several cryptocurrency products that entail investing in digital assets. It is not authorized to provide such services in the country.
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Due to the illegal nature of its conduct, the online trading firm has 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.