FSC Issues Guidance Notes On Stablecoins - Key Developments For Industry Participants

The Financial Services Commission ("FSC") has issued its guidance notes on stablecoins (the "Guidance Notes"), three years after the publication of draft guidance notes for public consultation in July 2023 (the "2023 Draft Notes"). The Guidance Notes represent a significant strengthening of the regulatory regime for stablecoins in Mauritius, reflecting the jurisdiction’s ambition to meet international benchmarks.

Background

Stablecoins are virtual assets that aim to maintain a stable value relative to a specified asset, or a pool or basket of assets. The Guidance Notes distinguishes two categories of stablecoins:

1. Asset-linked stablecoins. These purport to link the stablecoin to physical or financial assets to maintain a stable value relative to the referenced asset(s). Some arrangements may also provide, directly or indirectly, yield, interest, or other remuneration to holders.