Crypto License in the Seychelles

The Seychelles introduced theVirtual Asset Service Providers Act (VASP Act) in 2024 to regulate crypto businesses.

The VASP Act came into force on September 1, 2024, establishing a comprehensive regulatory framework for virtual asset activities. This license is issued by theSeychelles Financial Services Authority (FSA), which is responsible for licensing and supervising VASPs, ensuring compliance with international standards. The VASP Act defines and governs a broad range of virtual asset-related activities, including issuing tokens, operating exchanges, and providing custodial, brokerage, and trading services.

The Act classifies virtual assets as a subset of financial assets, and distinguishes them from other financial assets such as fiat currencies and securities. From the passing of this law, all Virtual Asset Service Providers operating from Seychelles are required to obtain authorisation.

Seychelles conducted a national risk assessment to identify money laundering and terrorist financing risks, which influenced the development of the VASP Act. The VASP Act includes provisions for civil, criminal, and administrative penalties for breaches of virtual asset laws and regulations.

TheSecurities Act of 2007 and theFinancial Consumer Protection Act play a role in the overall regulatory framework, providing guidance on the classification of digital assets and consumer protection.

TheInternational Business Companies Act sets out the requirements for incorporation and ongoing compliance for international business companies operating in the virtual asset space. Seychelles’ regulations are in line with the recommendations ofthe Financial Action Task Force on money laundering and countering terrorist financing. Seychelles has also committed to implementing the OECD Crypto-Asset Reporting Framework (CARF) for automatic tax information exchange.

Under this framework, anycrypto exchange, wallet provider,OTC desk, or othercrypto service provider must secure a Seychelles VASP license to operate legally. Providing virtual asset services within or from Seychelles requires proper licensing and compliance with the VASP Act.

Such entities include virtual asset investment providers, fund managers, and intermediaries, all of which are subject to licensing and compliance obligations under the VASP Act.

The Seychelles FSA (under the Ministry of Finance) manages the licensing and supervision of VASPs in the Seychelles. It reviews applications, issues the Seychelles VASP License, and monitors compliance post-licensing.

• Operating a cryptocurrency exchange (fiat-to-crypto and crypto-to-crypto trading platform), brokerage services, and trading services;
• Providing custodial wallet services for clients’ digital assets, with regulatory requirements to safeguard client assets;
• Issuing a token or promoting an ICO or other token offering services (with mandatory additional FSA oversight on the offering and whitepaper);
• Fundraising through ICO, for a maximal duration of 18 months;
• Crypto-related advisory or portfolio management services, including investment services and advisory services.

Seychelles is attracting crypto entrepreneurs for several reasons:

• Reputable offshore jurisdiction: Seychelles is well-known for its solid and incentivising financial business frameworks. A Seychelles VASP license is a green flag for partners and banks, while still offering the benefits of an offshore jurisdiction: flexibility and low taxes;
• Fast and efficient licensing procedure: The time to get licensed in Seychelles is shorter than in most other jurisdictions. Company incorporation takes just a handful of days, and the VASP license approval can be achieved in a minimum of 90 days, as per the VASP Act;
• On the lower end of crypto licensing costs: The government application fee is set at 75,000 SCR (about 5,500 USD), to which another fee will apply annually, depending on the activity. The annual fee ranges from 75,000 SCR to 375,000 SCR (about 27,500 USD). Licensees must pay these annual fees by a specified deadline to maintain their license validity under Seychelles law. There are no explicitly set requirements for the paid-up capital. However, good practice strongly advises preparing 10,000 to 50,000 USD in capital to demonstrate financial soundness and solvency to the FSA in the licensing process;
• Tax advantages: Seychelles VASP company can be registered as an International Business Company (IBC), meaning that their foreign-sourced income is not subject to corporate income tax. Seychelles-sourced income for VASPs is taxed at a rate of 1,5%, as indicated in the FSA guidelines;
• Confidentiality of entrepreneurs: Seychelles offers strong privacy for company ownership (shareholder details of IBCs are not public) and robust asset protection laws. While the FSA will know your company’s principals for compliance, this information isn’t available to the general public.

And the key advantage for success: a reliable legal expert, such as LegalBison, to ensure the smooth completion of all steps. Give us a call and let’s talk about your project.

One of the Seychelles’ attractions is its cost-effectiveness compared to other jurisdictions. Here’s a breakdown of typical costs (in USD):

• Company incorporation fee: fully covered by our services;
• Standard company renewal fee: also covered in our offer;
• License application fee (FSA): 75,000 SCR (about 5,500 USD, one-time fee to FSA to review the application; non-refundable). This is paid upon application submission;
• Professional service fees: LegalBison offers packages for end-to-end assistance. Request a quote directly to our consulting team. You will be provided with an estimate, including all other fees and costs;
• Share capital: As mentioned, there is a prescribed minimum capital that is not disclosed as a one-size-fits-all requirement. You should plan to allocate some funds to the company account to demonstrate liquidity. This capital remains your money to use for operating the business (unlike some countries, where it must stay frozen);
• Local office & director costs: Budget for local substance: a small office space in Mahé can be as low as 200–500 USD per month (for a flexi-office). We can assist in providing a nominee resident director (if you need one provided). These are ongoing costs to maintain compliance;
• Other expenses: If you plan to physically locate staff or equipment in Seychelles, factor in those costs. Also, consider insurance, as there are prescribed insurance requirements specified in the VASP Act.

Bottom line: Getting a Seychelles crypto license is relatively affordable. Many clients find that even with service fees, the total cost is a fraction of what they would spend in jurisdictions likeSwitzerland, and the 0% tax environment yields long-term savings that far outweigh initial costs.

After obtaining the license, running the business comes with ongoing obligations much lighter than in heavily regulated markets, but important to follow. All entities providing virtual asset services under the Seychelles VASP framework must adhere to these ongoing compliance requirements:

• Regulatory reporting: You will need to file periodic reports to the FSA. Typically, this includes an annual compliance report, any changes in directors or ownership, and suspicious activity reports (SARs) to the FIU in cases of any AML concerns. As part of your AML/CFT obligations, you are required to monitor for and report suspicious transactions to the relevant authorities to help prevent money laundering and terrorism financing. LegalBison can continue as your compliance advisor to prepare these reports;
• Meetings in the Seychelles: The VASP law encourages that board meetings are held in Seychelles (part of demonstrating economic substance). A licensed VASP in the Seychelles must hold at least two directors’ meetings per year physically in the Seychelles, as well as four managers’ meetings. Our team can help coordinate these meetings and provide local meeting facilities;
• Renewal of the company: Ensure your IBC status is renewed each year (simple fee payment). The crypto license itself currently has no set expiry (it remains valid as long as you comply and pay annual company fees), but keep an eye on any new rules – e.g., if FSA moves to an annual renewal model in the future, LegalBison will update you and assist in staying compliant;
• Ongoing AML/KYC compliance: Continue to implement robust AML checks on your customers as per your approved policies. The FSA or FIU can audit your compliance. We advise scheduling annual AML training for your team (we provide this) and possibly an independent AML audit every couple of years to ensure everything is in order. Staying proactive on compliance preserves your good standing;
• Expansion or changes: If you plan to add new services (say, start offering custody when you only were an exchange), you might need to inform or seek approval from FSA, depending on whether it’s covered under your license scope. Consult us before making material changes. Similarly, changes in beneficial ownership of the company typically need pre-approval by FSA – we’ll handle such applications to vary your license if needed.

Overall, Seychelles is cooperative and straightforward as a regulator – if you communicate and fulfil basic obligations, you should not face difficulties. LegalBison’s local partners remain on hand to assist post-licensing, ensuring your business remains 100% compliant and in good standing each year.

There are common misconceptions about running a crypto business in the Seychelles. These misconceptions stem principally from the fact that the Seychelles are an offshore jurisdiction and that the regulation is recent. Let’s run a quick run of fact checking.

No, the Seychelles aren’t a jurisdiction without any crypto regulations. The VASP Act of 2024 clearly regulates all types of activity related to virtual assets. Complying with the law and securing a license is mandatory. – Virtual Asset Service Providers Act, 2024, Section 5(1) – Purpose Clause of the VASP Act, 2024

No, the Seychelles are not free of AML/CFT rules and due diligence obligations. The Seychelles are pretty much following theFATF recommendations. – Virtual Asset Service Providers Act, 2024, Section 43 & Fourth Schedule, Part A, Item 12 – Virtual Asset Service Providers Act, 2024, Section 4(2)(i) & Fourth Schedule, Part A, Item 3 – Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020

No, a crypto license in the Seychelles does not come tied to a bank account. A Seychelles VASP license considerably improves the chance of being positively received by banking institutions. However, this absolutely doesn’t guarantee the ability to open an account within a Seychelles bank.

No, there are no different types of VASP licenses in the Seychelles. There is a single license that allows for different activities to be registered for at registration, and can be subsequently changed if the activity changes. – Virtual Asset Service Providers Act, 2024, Section 7 – Virtual Asset Service Providers Act, 2024, First Schedule – Virtual Asset Service Providers Licence Application Guidelines, Section 2.2.1

No, getting a VASP license in the Seychelles doesn’t require prior approval from the Central Bank of the Seychelles. Approval from the Central Bank is only required if the applicant already holds a license regulated by the Central Bank under either the Financial Institutions Act or the National Payment Systems Act. – Virtual Asset Service Providers Act, 2024, Section 7(5) – Virtual Asset Service Providers Licence Application Guidelines, Section 6.2.1(o)

No, expecting a single, universally applicable number for minimum share capital isn’t correct based solely on the main Act and guidelines provided. While these documents confirm that a minimum paid-up capital requirement exists and is prescribed in the separate VASP Regulations 2024, they don’t state the specific amount. Applicants must demonstrate solvency and the ability to meet these prescribed financial obligations. – Virtual Asset Service Providers Act, 2024, Section 16(1) – Virtual Asset Service Providers Licence Application Guidelines, Section 7.1(c)

The framework governing Virtual Asset Service Providers (VASPs) in Seychelles comprises the following:

• TheVirtual Asset Service Providers Act, 2024 (Act 12 of 2024) is the core law establishing the licensing regime, defining VASPs and virtual assets, outlining permissible activities, setting requirements (including substance), establishing the FSA as the regulator, and providing powers for inspection, investigation, and enforcement;
• The Act is completed bya set of Guidelines issued by the FSA, specifying and detailing certain aspects of the VASP framework;
• The Anti-Money Laundering and Countering the Financing of Terrorism Act defines VASPs as reporting entities and outlines mandatory AML/CFT obligations, including customer due diligence, record-keeping, suspicious transaction reporting, and compliance officer requirements;
• TheFinancial Services Authority Act, 2013, establishes the FSA and provides it with overarching regulatory, supervisory, enforcement, and inspection powers, which are explicitly extended to its role under the VASP Act;
• TheInternational Business Companies Act, 2016 (Act 15 of 2016) is relevant as IBCs are eligible entities to apply for a VASP license. It sets out incorporation and ongoing compliance requirements for IBCs and includes prohibitions against unlicensed VASP activities. The VASP Act also makes consequential amendments to this Act;
• TheCompanies Act, 1972, is also relevant as companies incorporated under this Act are equally eligible entities for a VASP license. It is also referenced for audit standards;
• The Financial Consumer Protection Act, 2022, is amended by the VASP Act to include VASP licensees under its scope, imposing consumer protection obligations.

Request a free consultation

Keep in mind that LegalBison can guide you through meeting all of these conditions:

Company registered in the Seychelles. LegalBison advises an International Business Company (IBC), as it offers the simplicity and flexibility of an offshore entity. It also comes with tax benefits.

Physical office in the Seychelles. A registered office address in the Seychelles is mandatory. Additionally, under the new VASP rules, the company should maintain an actual local presence (this can be a small rented office space). A licensed registered agent in the Seychelles is also required for all IBCs. LegalBison can fulfil this role, handling official correspondence on your behalf.

Resident director. At least one director must be a resident of the Seychelles. This is part of the substance requirements to ensure accountability. The resident director should be a person of good repute (background checks will apply). LegalBison can assist in sourcing qualified local directors if needed. Other directors or shareholders can be non-residents, and there is no restriction on nationality for ownership.

Fit and proper personnel. All directors, beneficial owners, and senior management will undergo an FSA fit-and-proper assessment. This means: clean criminal records, relevant experience in finance/crypto, and good financial standing. You will need to provide notarised passport copies, proof of address, CVs, and police clearance certificates for these individuals.

AML/CFT compliance officer. You need to appoint a Money Laundering Reporting Officer (MLRO) or compliance officer. This individual must be internal staff and a qualified individual, responsible for ongoing compliance. This person should ideally have compliance experience and will be the point of contact for the FIU (Financial Intelligence Unit) in the Seychelles.

Minimum capital & solvency. The VASP Act mandates that applicants demonstrate adequate financial resources. Unlike some jurisdictions with fixed capital, Seychelles assesses capital on a case-by-case basis. In practice, showing a paid-up capital (or available funds) of at least 50,000 USD is advisable, as this used to be the required capital for other financial licenses (like the Securities Dealer License) in the past. The capital can be used in the business, but must be in place to ensure solvency. FSA may also require proof of funds (bank statements, etc.) to verify this.

Business plan & compliance documentation. A comprehensive Business Plan is required, outlining your proposed services, target markets, revenue model, and risk management. You must also prepare Internal Policies covering Anti-Money Laundering (AML), Know Your Customer (KYC) procedures, cybersecurity measures, and record-keeping. These documents should align with Seychelles’ AML laws and the VASP Act’s regulations. LegalBison will provide templates and guidance to craft policies that meet FSA expectations. As part of your application, you must conduct a risk assessment to identify and address potential money laundering, terrorist financing, and operational risks. Ongoing risk assessments are also required to ensure continued compliance with regulatory obligations.

IT and safety. The FSA will want to know that you have secure systems in place (especially if you operate an exchange or custody). While there isn’t a formal IT audit at the application, your application form will ask about cybersecurity measures. You should plan for secure custody solutions (if holding clients’ crypto), fraud prevention, and possibly integration of travel rule compliance for transfers. Safeguarding client assets is a regulatory obligation, and you must implement measures to protect client assets through segregated accounts, custody protocols, and robust cybersecurity. Compliance with international standards for virtual asset transfers, such as the Travel Rule, is required. Your systems should be designed to facilitate secure and compliant virtual asset transfers between VASPs, ensuring proper exchange of customer data and adherence to anti-money laundering measures.

Audits by an appointed auditor. The Seychelles VASP framework requires the appointment of an auditor to audit financial statements annually. As for any domestic and personnel-related requirement, LegalBison can assist with the matter to ease up your workload and ensure your compliance.