The Mauritius Financial Services Commission has issued a guidance note concerning security token offerings.
In the document, the FSC declared that security tokens are considered digitally represented securities as defined in the Securities Act of 2005. As a consequence, when STOs are conducted in or from Mauritius, the offering is regulated by local security regulations, including the requirement for a prospectus.
The regulator also notes that, while no STO can take place without its prior approval, there are exceptions for when a token issuer needs authorization. Those exceptions include offerings meant for sophisticated investors, expert investors, expert funds, professional collective investment schemes and specialized collective investment…
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