The Virtual Asset and Initial Token Offering Services Act 2021 (the “Act” or “VAITOS Act 2021”), provides for a regulatory framework for new and developing activities regarding Virtual Assets (“VAs”) and Initial Token Offerings (“ITOs”) in Mauritius.

A Virtual Asset (“VA”), according to the VAITOS Act 2021, is a digital representation of value which may be digitally traded or transferred, and may be used for payment or investment purposes, but does not include a digital representation of fiat currencies, securities and other financial assets that fall under the purview of the Securities Act.

VASP, means a person who conducts, as a business activity, for or on behalf of another person, one or more of the following activities or operations, namely:

> Exchange between VAs and fiat currencies;
> Exchange between one or more forms of VAs;
> Transfer of VAs;
> Safekeeping of VAs or instruments enabling control over VAs;
> Administration of VAs or instruments enabling control over VAs; or
> Participation in, and provision of, financial services related to an issuer’s offer and sale of a VA; or an issuer’s offer or sale of a VA

VASP consists of several sub-categories of licences as follows:

> Holders of Class M (Virtual Asset Broker-Dealer) licences carry out activities such as exchange between VAs and fiat currencies; or exchange between one or more forms of VAs.
> Class O (Virtual Asset Wallet Services) licences pertain to the transfer of VAs.
> Class R (Virtual Asset Custodian) licensees are responsible for safekeeping of VAs or instruments enabling control over VAs; administration of VAs or instruments enabling control over VAs.
> Class I (Virtual Asset Advisory Services) licence is required for the participation in and provision of financial services related to an issuer’s offer and/or sale of VAs.
> Virtual asset exchanges must apply for a Class S (Virtual Asset Market Place) licence. A Virtual Asset Exchange is a centralised or decentralised virtual platform, whether in Mauritius or in another jurisdiction which facilitates the exchange of VAs for fiat currency or other VAs on behalf of third parties for a fee.