Mauritius has established itself as an African crypto hub with clear regulatory frameworks and favorable tax treatment. The country offers streamlined licensing and strong financial infrastructure.

The FSC regulates digital asset custodians and exchanges under the Virtual Asset and Initial Token Offering Services Act.

The VAITOS Act 2021 mandates that any entity conducting virtual asset services in or from Mauritius must obtain a license from the Financial Services Commission (FSC). The Act defines several classes of VASP licenses, each corresponding to a specific activity, with the FSC Rules on Capital and Other Financial Requirements specifying the minimum financial obligations [2]. The license classes include: Virtual Asset Broker-Dealer (Class M), Virtual Asset Wallet Services (Class O), Virtual Asset Custodian (Class R), Virtual Asset Market Place (Class S), and Virtual Asset Advisory Services (Class I). Applicants must be a company incorporated in Mauritius and satisfy the "Fitness and Propriety" test for all officers and controllers. A key requirement is the maintenance of minimum unimpaired capital and liquidity resources, which must be the greater of the "own funds requirement" or the "prudential requirement." For example, the minimum own funds requirement for a Virtual Asset Broker-Dealer is 2,000,000 Mauritian Rupee (MUR), a Virtual Asset Custodian is 5,000,000 MUR, and a Virtual Asset Market Place is 6,500,000 MUR. Other classes require sufficient working capital to meet debts as they fall due.

Mauritius offers a highly favorable tax environment for cryptocurrency investors, primarily due to the absence of a Capital Gains Tax (CGT) for individuals. Consequently, profits realized from the sale or exchange of cryptocurrencies, when treated as capital gains, are not subject to taxation. However, if a VASP or an individual is deemed to be trading crypto assets as a business, the profits will be classified as income and subject to the corporate or individual income tax rate, which is generally 15%. There are no specific tax rates or thresholds unique to crypto. For reporting obligations, the Mauritius Revenue Authority (MRA) requires the submission of a "Statement of Virtual Assets Transactions (SVT)" [4] to ensure compliance and proper classification of gains. Furthermore, the country introduced a 15% Value Added Tax (VAT) on digital and electronic services supplied by foreign providers to Mauritian consumers, effective from January 1, 2026, which may impact certain cross-border VASP services.

Banking access for Virtual Asset Service Providers (VASPs) in Mauritius remains a significant challenge, despite the clear regulatory framework established by the FSC. Local banks have historically been reluctant to onboard crypto-related businesses due to perceived high Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) risks and a lack of clear guidance. However, the Bank of Mauritius (BoM) has issued a "Guideline for Virtual Asset related Activities" [3], which sets out the principles for banks involved in virtual asset activities. This guideline provides a necessary framework for licensed VASPs to potentially secure banking services, though the process remains rigorous. While no specific "crypto-friendly" local banks are widely advertised, the regulatory clarity from both the FSC and BoM is intended to encourage financial institutions to engage with the sector, particularly for VASPs that are fully licensed and compliant with the VAITOS Act.

https://www.fscmauritius.org/media/119928/the-virtual-asset-and-initial-token-offering-services-act.pdf https://www.fscmauritius.org/media/127909/virtual-assets-and-ito-capital-and-other-financial-requirements-rules.pdf https://www.bom.mu/sites/default/files/guideline_for_virtual_asset_related_activities_0.pdf https://www.mra.mu/download/SpecSVT-V1.pdf