In a recent article in the yearly Investor Guide, Our CEO, Bilal Adam, shared his insights on how strategic measures and targeted incentives can expedite Mauritius’s journey towards becoming a fintech powerhouse through Digital Asset Custody

In the evolving world of finance, where digital assets wield increasing influence and often referred to the future of finance, Mauritius finds itself at the epicenter of a unique and promising opportunity. Boasting five of the ten wealthiest crypto owners globally, originating from economic powerhouses like China, the USA, UK, Europe, Russia, and South Africa, Mauritius has the potential to carve out a distinctive niche in the global fintech landscape and target the 145,000 crypto millionaires globally. The key to unlocking this potential lies in acknowledging the expertise and financial prowess of millionaire crypto investors worldwide and encouraging them to contribute to the development of Mauritius's fintech sector. This will not only speed up the creation of a Fintech hub but also significantly increase USD reserves, enhancing the island's economic stability.

The post-pandemic era has ushered in a profound shift in work dynamics, with the ability to work remotely reversing trends of globalization and urbanization. Many are now opting for a more convenient and relaxed lifestyle in suburban areas, steering away from bustling metropolises. Recognizing this, Mauritius stands poised to position itself as an appealing destination, leveraging its strategic location, natural beauty and cultivating an environment conducive to fintech innovation.

A Focus on Digital Asset Custody

Nevertheless, to expedite the establishment of Mauritius as a fintech hub for digital assets, strategic measures must be undertaken. The adoption of laws, rules, and guidelines tailored for the fintech industry, particularly Digital Asset Custody Licenses, is fundamental. This paves the way for an enthusiastic fintech environment that magnetizes both investors and talent. Additionally, initiatives promoting AI, software development, and IT engineering educational programs can cultivate local fintech professionals, offering indispensable support to the burgeoning industry.

Key initiatives to make it happen

To attract crypto investors, Mauritius can implement a range of initiatives. Offering long-term residence permits for those bringing at least USD 1 million worth of Digital Assets into the Mauritius Digital Custody Programme is a tangible incentive. Clear and streamlined processes to secure business and tax incentives for these fintech millionaires can further sweeten the deal, creating an environment conducive to their prosperity.

Favouring crypto holders in real estate transactions constitutes another strategic move. This not only fortifies the real estate market but also cements the presence of crypto investors in Mauritius, thereby contributing to the organic growth of the fintech ecosystem.

To position Mauritius as a sophisticated crypto-savvy hub, local banks and custodians need to be seamlessly integrated into an efficient crypto ecosystem fortified by a robust legal framework. Advocating for the Digital Custody License in Mauritius empowers these financial institutions to offer secure custody solutions vital for building the industry. This, in turn, attracts crypto millionaires, fostering a symbiotic relationship.

The process involves securely receiving Digital Assets from crypto millionaires, storing them, and providing reporting capabilities to the bank or custodian. This innovative approach not only revitalizes other industries in Mauritius but also diversifies long-term bank reserves away from the USD and EUR. From an AML-CFT perspective, all transactions remain transparent and immutable on the blockchain, ensuring a high level of accountability.

Benefits for Mauritius

The promotion of Digital Custody brings a number of benefits. It elevates trust and confidence among global blockchain participants, amplifies Mauritius' competitive advantage against other relocation destinations, and generates positive publicity at no cost. This innovation propels a higher degree of sophistication and innovation within the Mauritius fintech and global business industry.

Moreover, the total market capitalization of Crypto surpasses a staggering 2 trillion dollars, exceeding a third of the Chinese stock market and dwarfing the Mauritius stock market by more than 250 times. The digital asset custody market itself already exceeds 500 billion dollars, presenting Mauritius with a lucrative opportunity to capture even a fraction of this burgeoning market.

This not only reaches a new target audience of crypto high-net-worth individuals but also aligns Mauritius with the younger, more socially active demographic, thereby enhancing its social media profile.

Mauritius is presented with a golden opportunity to emerge as a fintech hub by strategically positioning itself in the digital asset custody space. By embracing the expertise and financial strength of global crypto investors, promoting an environment conducive to innovation, and implementing targeted incentives, Mauritius can accelerate its journey toward becoming a fintech powerhouse. The time is ripe for Mauritius to seize this opportunity and establish itself as a global leader in the dynamic fintech landscape.