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Loretta Joseph, Fintech and Regulatory Consultant, and Renu Audit, Director of Authorisation and Supervision from the Financial Services Commission (FSC) joined a webinar organised by MAFH on 5 November to enlighten the public on the ecosystem of Security Token Offerings (STOs) and Security Token Trading Platforms.

The session highlighted how in 2018 Mauritius had embarked upon a journey to create a new legal and regulatory framework around digital assets (representing a sophisticated mode of investment backed by blockchain), which would allow for a new level of cybersecurity for public-private ledgers and new ways of faster trading as opposed to tangible assets like gold, according to Loretta Joseph. 

It was anticipated that the implementation of STOs by the FSC under the TSS (trading securities system) license would enhance the Mauritian economy whilst opening up a host of opportunities for entrepreneurs, investors as well as SMEs.

In terms of the framework, Renu Audit explained that the FSC has been working extensively with international regulators to ensure the security and adequate licensee profiling in order for this new capital raising platform to be fully compliant. Looking at Mauritius as a strategic FinTech hub, she underlined that the island’s highly skilled labour force, full fledged banking system and strong legal system provide a huge opportunity to diversify away from the traditional administration world to the STO world of financial innovation.

In conclusion, Loretta Joseph emphasised that regulators understand that technology is ever evolving. She stressed that the crucial aspect is to have safeguards in place not only for the consumer and investor, but also for the entrepreneurs who are building their businesses and need to have legal clarity when they come into a jurisdiction.

Watch the video of the webinar here: