Virtual assets

Their accounting & international tax considerations

In March 2020, the COVID-19 pandemic led to a virtual asset ‘flash crash’. However, while traditional stocks continued to suffer severe volatility, virtual asset markets recovered within just a few weeks – KPMG1

We all read recently that Facebook has renamed Itself Meta. The social network platform said the change was part of its bet on a next digital frontier called the metaverse.

Reuters2 wrote in February 2022 on its online platform that “Global markets have had a rocky start to the year as the prospects of tighter monetary policy prompted investors to ditch risky assets – but the fast-growing world of “metaverse” investing has been running on its own timeline. Metaverse-related assets such as currencies which can be used in virtual worlds, and NFTs (non-fungible tokens) representing virtual land, took only a small hit as risk appetite dropped in January, while the broader market for digital goods has seen volumes surge.”

For the uninitiated, the metaverse is an online parallel universe with multiple virtual spaces where one may work, game, socialize, invest and pretty much do most such activities that one may do in the real world! The metaverse is steadily taking shape but is still largely work-in-progress till now! Transaction settlement in the metaverse will be /is through exchange of virtual assets such as crypto currency. This article seeks to provide an overview of virtual assets in Mauritius and on ther accounting and international tax implications.

The development of a virtual asset industry in Mauritius

Mauritius has been steadily developing its virtual asset offering since the first guidance which was issued by the Mauritius Financial Service Commission (FSC) in September 2018 and which recognised digital assets as an asset-class for investment by sophisticated and expert investors.

Contributing Advisors