Quick Answer
Yes, cryptocurrency is legal and regulated in Mauritius.
- The VAITOS Act 2021 regulates all virtual asset service providers.
- Strict AML/CFT compliance is required for all crypto-related activities.
Legal Status of Crypto in Mauritius
Cryptocurrency is legal in Mauritius, operating within a well-defined regulatory environment rather than a legal gray area. This status is primarily established by the Virtual Asset and Initial Token Offering Services (VAITOS) Act, which provides a clear framework for virtual assets and their service providers. The Financial Services Commission (FSC) oversees these activities, enforcing strict compliance with regulations, including comprehensive Anti-Money Laundering rules.
Current Regulations
The primary regulation for cryptocurrency in Mauritius is the Virtual Asset and Initial Token Offering Services (VAITOS) Act, which came into force on February 7, 2022. This legislation establishes a comprehensive legal framework that requires Virtual Asset Service Providers (VASPs) and issuers of Initial Token Offerings (ITOs) to be licensed and supervised by the Financial Services Commission (FSC). In addition to the VAITOS Act, all crypto-related businesses must comply with the Financial Intelligence and Anti-Money Laundering Act (FIAMLA). The framework defines cryptocurrencies as "virtual assets," distinguishing them from traditional securities, which are regulated under the Securities Act 2005.
Regulatory Authorities
Several key regulatory bodies in Mauritius work together to enforce the legal framework for crypto and crypto trading.
- Financial Services Commission (FSC): The FSC is the primary regulator for the non-bank financial services sector, responsible for licensing and supervising Virtual Asset Service Providers (VASPs) and Initial Token Offerings (ITOs) under the VAITOS Act. It enforces rules on capital requirements, client disclosure, cybersecurity, and risk management to ensure market integrity and protect consumers.
- Financial Intelligence Unit (FIU): As the nation's central AML/CFT agency, the FIU is responsible for receiving and analyzing suspicious transaction reports from all financial institutions, including those dealing with virtual assets. It ensures that crypto-related activities comply with the Financial Intelligence and Anti-Money Laundering Act.
- Bank of Mauritius (BoM): The BoM is the country's central bank and is responsible for issuing a potential central bank digital currency (CBDC), the Digital Rupee. While not the main crypto regulator, it sets foundational AML/CFT guidelines for the banking sector, which influences the broader financial ecosystem.
- Office of Ombudsperson for Financial Services: This office acts as an independent body to resolve complaints from investors and consumers that are not satisfactorily addressed by licensed VASPs. It provides an essential avenue for grievance resolution for participants in the virtual asset market.
Historical Context
Mauritius's approach to crypto regulation began cautiously in 2018 with a regulatory sandbox designed to foster innovation. The first major step toward formal rules occurred in June 2020 with new guidelines for security token trading. The pivotal moment was the enactment of the Virtual Asset and Initial Token Offering Services (VAITOS) Act in 2021, which officially came into force on February 7, 2022. This shift created a comprehensive licensing framework, providing legal certainty that attracted virtual asset businesses. The regulations continue to adapt, with stricter AML/CFT rules and new guidance on staking and DAOs introduced through 2024.
Compliance Requirements for Businesses in Mauritius
Businesses dealing with virtual assets in Mauritius must adhere to a strict set of compliance rules, primarily outlined in the AML/CFT compliance guideline from the Bank of Mauritius. These regulations are designed to prevent financial crime and ensure market integrity. Key requirements include:
- AML Checks: Financial institutions must perform rigorous Customer Due Diligence (CDD) to verify customer identities, conduct ongoing monitoring of transactions, and apply a risk-based approach to assess potential money laundering or terrorist financing risks. This includes screening clients against sanctions lists and promptly reporting any suspicious activity to the Financial Intelligence Unit (FIU).
- KYC Requirements: Know Your Customer (KYC) rules are a cornerstone of compliance. Businesses must identify and verify the identity of all customers and their beneficial owners using reliable, independent documents. This involves establishing clear customer acceptance policies and strictly prohibiting anonymous or fictitious accounts.
- Other Mandatory Procedures: Companies are required to establish robust internal controls, including appointing a designated Compliance Officer and a Money Laundering Reporting Officer (MLRO). They must also implement ongoing staff training programs, conduct independent audits of their compliance frameworks, and maintain all relevant records—including CDD data and transaction histories—for a minimum of seven years.
Why this matters for Cross-Border Payments
For businesses conducting cross-border transactions with India, Mauritius's clear regulatory framework offers a secure and legitimate channel for using digital assets. However, this security comes with significant operational considerations. The stringent AML/CFT and KYC requirements, while essential for preventing financial crime, can introduce friction by slowing down transaction speeds and increasing compliance overhead. These potential delays and administrative burdens are critical pain points for companies relying on the efficiency of crypto for international payments.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides a global payments infrastructure built on Bitcoin and the Lightning Network. Its two core products, Lightspark Connect and Grid Switch, work together to streamline cross-border transactions. Connect enables native Bitcoin payments by managing complex infrastructure like nodes and liquidity. Grid Switch bridges traditional finance by using domestic real-time payment systems for fiat transfers, leveraging Bitcoin as a neutral settlement asset. This dual approach allows businesses to move money instantly and at a low cost, bypassing the delays and high fees of legacy systems.
This infrastructure helps regulated institutions meet their compliance obligations. Lightspark offers features like audit-ready reporting, flexible key custody, and built-in tools for OFAC screening and the Travel Rule. By providing these compliant-ready solutions, Lightspark reduces the operational friction and overhead associated with strict AML/KYC regulations. This allows businesses to leverage the speed of crypto for cross-border payments while adhering to the necessary legal frameworks.
To learn how Lightspark can help you modernize payments and unlock new markets, connect with their team.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- Bank of Mauritius. Guideline on Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation. Bank of Mauritius, Jan. 2020, www.bom.mu/sites/default/files/guideline_on_aml-cft_jan_2020_15.01.2020_0.pdf.
- Bhima, Sharmilla. "Is Cryptocurrency Security - The Mauritian And USA Perspectives?" Appleby, Appleby, 19 Mar. 2025, www.applebyglobal.com/publications/is-cryptocurrency-security-the-mauritian-and-usa-perspectives/.
- Financial Services Commission, Mauritius. Guide on the Virtual Asset and Initial Token Offering Services (VAITOS) Act. Financial Services Commission, Mauritius, 1 July 2022, www.fscmauritius.org/media/130455/fsc-guide-on-vaitos-act.pdf.
- "Mauritius & Cryptocurrency | Blockchain & Cryptocurrency Laws & Regulations." Freeman Law, Freeman Law, freemanlaw.com/cryptocurrency/mauritius/.
- "Mauritius Virtual Assets Regulation." Charltons Quantum, Charltons Law, charltonsquantum.com/mauritius-virtual-assets-regulation/.
- Mudhoo, Ashwin, and Yushrah Bayjou. "CMS Expert Guide to Crypto Regulation in Mauritius." CMS Expert Guides, CMS Legal, 20 June 2025, cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/mauritius.
