Stablecoin issuer / redeemer in Mauritania

No specific classification for stablecoins exists in Mauritanian law.

Likely Interpretation: If a stablecoin aims to maintain a stable value relative to the Mauritanian Ouguiya (MRO) or another fiat currency and is used for payments, it would most likely be interpreted as a form of e-money or a payment token under the existing payment systems framework, rather than a security. This is because its primary function would be to facilitate transactions rather than to represent an investment with an expectation of profit.

Legal Basis (Indirect): The relevant legislation would be Loi N° 2013-057 portant sur les systèmes et moyens de paiement en République Islamique de Mauritanie (Law N° 2013-057 on payment systems and means in the Islamic Republic of Mauritania), and subsequent implementing regulations or circulars from the BCM regarding payment service providers and e-money. This law defines and regulates various payment instruments and services.

No specific reserve requirements for stablecoins.

Potential Application (by analogy): If a stablecoin issuer were to be licensed as an e-money institution or payment service provider under Law N° 2013-057, then the BCM would likely impose requirements akin to those for e-money, which typically include:

Safeguarding of client funds: Requirements to hold funds equal to the e-money issued, segregated from the issuer's own operational funds, in secure bank accounts or other low-risk assets.

Capital adequacy: The issuer would need to meet minimum capital requirements to ensure its financial stability.

No specific stablecoin issuer license.

Requirement for Licensing (by analogy): Any entity seeking to issue stablecoins and offer related services would almost certainly be required to obtain a license from the Banque Centrale de Mauritanie (BCM) as a financial institution or a licensed payment service provider, in accordance with Loi N° 2013-057 and BCM regulations. Operating without such a license would be illegal.

The BCM would likely assess the issuer's business plan, governance, risk management frameworks, and financial soundness.

No specific stablecoin redemption rights legislation.

Potential Application (by analogy): If a stablecoin issuer were to be licensed as an e-money institution or payment service provider under Law N° 2013-057, then the BCM would likely impose requirements akin to those for e-money, which typically include:

Communiqué de la Banque Centrale de Mauritanie relatif aux monnaies virtuelles (2018): This communiqué generally warns against the use of cryptocurrencies due to their speculative nature, volatility, and lack of regulation. While not stablecoin-specific, it reflects the central bank's cautious stance on unregulated digital assets.

Absence of Specific Legislation: Mauritania has not enacted specific laws or decrees to regulate virtual assets, blockchain technology, or cryptocurrency service providers. Unlike many countries that have adopted or are in the process of adopting bespoke crypto regulations, Mauritania has not yet done so.

Central Bank Stance: The Banque Centrale de Mauritanie (BCM) – the country's central bank and primary financial regulator – has generally taken a cautious stance. While there hasn't been an outright ban, the BCM has historically issued warnings regarding the risks associated with cryptocurrencies, including their volatility, potential for fraud, and use in illicit activities. These warnings serve to inform the public and financial institutions of the risks rather than establishing a regulatory framework.

No Specific Licenses: Consequently, there are no specific licenses or registration requirements for cryptocurrency exchanges, custody providers, or payment processors.

Neither a dedicated licensing nor a registration regime for virtual assets exists.

Legal Uncertainty: Operating a virtual asset business in a jurisdiction without clear regulations carries significant legal and operational risks. There is no legal certainty regarding the status of contracts, consumer protection, tax implications, or the legality of operations.

Risk of Future Regulation: The absence of regulation does not mean permissibility. Mauritania could, at any time, introduce new laws, including bans, strict licensing requirements, or even retroactive measures.

Custodial License Requirements: There are no specific licenses for digital asset custodians because cryptocurrencies are not permitted for use as legal tender or for financial transactions. Offering such services would likely fall outside the bounds of permitted financial activities.

Communiqué from the Banque Centrale de Mauritanie (BCM):

What this means: The BCM's stance implies that any activity related to cryptocurrencies, including custody services, falls outside the legal and regulated financial sector and would likely be viewed as non-compliant or illegal.

Ban on Financial Institutions Dealing with Cryptocurrencies:

Legal Reference: Circular N° 004/R/2019 issued by the Banque Centrale de Mauritanie (BCM) (Central Bank of Mauritania).

Content: This circular prohibits banks, financial institutions, and payment service providers supervised by the BCM from engaging in any activities related to cryptocurrencies, including buying, selling, holding, or facilitating transactions involving them. It cites concerns about financial stability, consumer protection, money laundering, and terrorist financing.

Absence: There is no specific tax legislation in Mauritania dedicated to cryptocurrencies or virtual assets. This means there are no crypto-specific capital gains rates, income tax rules, or VAT treatments.

Not Legal Tender: The Central Bank of Mauritania (BCM) has repeatedly warned against the use of cryptocurrencies, stating they are not legal tender and are not regulated by the BCM. They have highlighted risks such as volatility, lack of consumer protection, and potential for illicit activities.