The latest compliance issues in wealth management across Asia-Pacific.

Mauritius’ financial regulator has clarified how security token offerings – a way of raising funds that uses new crypto-currency technology - should be conducted.

The Financial Services Commission, Mauritius, said in a statement this week that it “remains highly supportive of fintech-related initiatives in Mauritius”. 

Security token offerings raise funds by selling crypto tokens backed by the assets or revenue of a given company. Investors can trade, sell or hold their purchased security tokens, while the company raises funds necessary for the success of their project. They differ from initial coin offerings, which are forms of crowdfunding using crypto-currencies. 

However, the watchdog said that no prior approval is required in respect of offerings to the following categories of investors: sophisticated investors; expert investors; expert funds; professional collective investment schemes; and specialised collective investment schemes. Apart from these exceptions, no offerings of securities tokens will be made without getting regulatory approval.