Illegal Cryptocurrency Firms Take Hold

The Financial Services Commission in Mauritius has been tasked with the responsibility of overseeing the financial operations within the country. Jennocrypto has been the centre of their attention of late. A warning issued by the FSC has stated that the company is operating under false pretences meaning that they do not have a licence. The company has claimed to have received approval from a number of financial institutions including the regulator in Mauritius. These claims are false.

A wave of unlicensed operators

For years Mauritius has been a preferred location for people who want to take part or run offshore brokerage firms. The more relaxed financial requirements are one of the main reasons for this. Low start-up costs and required capital paired with a tax system that is favourable were all on offer. The regulator in Mauritius has had to deal with their fair share of illegal operators. As times have changed and cryptocurrency has become more popular, the Mauritian regulator has made changes to stem the tides. Monitoring and assessing cryptocurrency firms and their operations is one of the steps taken. Of late it has become quite difficult to apply for and be granted a forex licence in the country. Brokerage firms are now seeking the alternative location of Belize which holds a higher priced requirements schedule.

What about Jennocrypto?

Jennocryto was operating through a website. The site reveals that the company was offering its clients a number of options to invest in digital assets. Jennocryto does not have the authority to do so in Mauritius. The operation without a licence is illegal. The company has been ordered by the Financial Services Commission to cease all operations due to unlawfulness. Their violation of Mauritian law has landed them in hot water. In the end, it’s important to understand that cryptocurrency is not above the law.