Cryptocurrencies and Virtual Assets in Mauritius: A Critical Assessment of the Legal Framework

Abstract The goal of this study on the legal framework for virtual assets in Mauritius is to find any gaps in the legislation, come up with solutions to close such gaps, and improve the existing legal framework for virtual assets. The article concentrates on the provisions of the Virtual Asset and Initial Token Offering Services ( vaitos ) Act 2021, which seeks to control the market for cryptocurrencies and other virtual assets in Mauritius. Selected countries were studied in order to discover the various techniques used with regard to regulatory challenges. Although Mauritius passed a comprehensive law on the issue, we find that the Financial Services Commission, the country’s regulatory authority, lacks the necessary tools to effectively oversee cryptocurrencies and other virtual assets. The integration of virtual asset services with African nations is also lacking.