FSC Bans Jennocrypto for Falsifying Cryptocurrency Operation License
FSC Bans Jennocrypto for Falsifying Operation License
The Mauritius Financial Services Authority, the island’s financial oversight authority, has issued an advisory to investors declaring that the Investment Dealer License that Jennocrypto holds is illicit. Besides lacking the approval of the Mauritian FSC, the brokerage firm falsely claims that is licensed by the UK Financial Conduct Authority (FCA) as well as the Malta-Cyprus Securities and Exchange Commission.
According to the official website of Jennocrypto, the company offers a variety of digital currency products that allows them to freely trade in crypto assets without necessarily having to acquired operating licenses form regulatory authorities. As a result of its law-breaking activities, FSC has reprimanded and issued an immediate cease and desists order against the firm. Expectedly, the order bars Jennocrypto from conducting any type of trading transaction within the confines of Mauritius.
However, the Jennocrypto incident is not the first time a cryptocurrency company is unlawfully operating in Mauritius. As per the FSC, there have sacral similar cases in the recent past. Due to the growing demand and rising popularity of digital currencies, most of the traditional financial companies have been compelled to adjust to this emerging trend. In this regard, the FSC has added the monitoring and regulation of virtual currencies and their derivatives to its existing mandate.
While the actions of Jennocrypto are deplorable, their choice of market is understandable. For a substantial period, offshore brokerage firms have favored Mauritius due to the country’s friendly stance towards crypto enterprises. As compared to European nations, Mauritius has lower financial requirements. Furthermore, the market has a favorable tax regime and affordable setup fees. Nevertheless, due to the increasing prevalence of fraud in the crypto sphere, the Mauritian government has imposed stringent regulations of late. This especially affect foreign countries that wish to set up offices on the island, as the process of obtaining forex license is lengthy and tedious. Consequently, such institutions are now favoring Belize, despite its higher capital requirements and a costly tax regime.