Crypto License in the Seychelles
Get your Seychelles crypto license with expert legal support. Join hundreds of successful crypto businesses operating under the Seychelles VASP framework.
Quick facts: Seychelles Crypto License
| License Type | Virtual Asset Service Provider (VASP) |
|---|---|
| Regulator | Financial Services Authority (FSA) |
| Timeframe | from 4 months |
| Government fees | 75,000 SCR (about 5,500 USD) |
| Minimal capital | Prescribed but not fixed (solvency capital highly advised) |
| Corporate tax | 0% for companies not conducting business within the territory, with some exemption on foreign-sourced income, 1.5% for licensed VASPs; |
| Key advantages | Offshore benefits, straightforward rules, covers various business models, incentivizing framework, no capital gains tax or VAT on crypto profits |
Full assistance in getting a crypto license in Seychelles. Acknowledge every critical detail before applying: licensing process, cost and requirements. Learn how LegalBison’s experts can help you form your cryptocurrency company in this reputed offshore jurisdiction.
- Fast offshore setup: Complete company registration and license approval from 3 to 4 months total. Faster than in the EU and US jurisdictions.
- Favorable tax regime: Seychelles does not levy corporate taxes on foreign-sourced income for international business companies (IBC). Professionally structured crypto companies pay minimal tax.
- Clear regulations: The new Virtual Asset Service Providers Act 2024 provides a straightforward framework, under the supervision of the Seychelles FSA (Financial Services Authority).
- High reputation: A Seychelles license is perceived as a sign of international legitimacy, letting you operate globally from a renowned offshore financial center.
The Seychelles’ VASP framework allows for a vast array of cryptocurrency-related activities. The FSA regulations encourage innovation and bold business models. Both traditional and emerging crypto businesses are welcome and can operate with legal certainty. Seychelles is recognized as a strategic hub for crypto exchanges, with several well-known platforms choosing to operate here due to the supportive legal framework and favorable regulatory environment.
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Regulatory Overview: Seychelles’ new Crypto License for Virtual Asset Service Providers
The Seychelles introduced the Virtual Asset Service Providers Act (VASP Act) in 2024 to regulate crypto businesses. This license is issued by the Seychelles Financial Services Authority (FSA). 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. From the passing of this law, all Virtual Asset Service Providers operating from Seychelles are required to obtain authorization. Seychelles conducted a national risk assessment to identify money laundering and terrorist financing risks, which influenced the development of the VASP Act.
The Securities Act of 2007 and the Financial Consumer Protection Act play a role in the overall regulatory framework, providing guidance on the classification of digital assets and consumer protection. The International 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 of Financial Action Task Force on money laundering and countering terrorist financing.
Under this framework, any crypto exchange, wallet provider, OTC desk, or other crypto 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.
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.
With a Seychelles crypto license, a company can engage in multiple virtual asset services:
- 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.
The law covers areas like ICOs and explicitly prohibits certain high-risk activities such as operating crypto mixers/tumblers or crypto mining facilities. In addition, the VASP Act outlines specific prohibited activities, and it is essential for businesses to understand these legal restrictions to ensure lawful operation.
The Seychelles regulation clearly separates virtual assets from fiat currencies.
Reporting entities, including VASPs and other organizations subject to Seychelles’ virtual asset laws, are required to adhere to the Seychelles’ AML/CFT Act induced obligations This includes licensing, performing customer due diligence, and transaction reporting.
What are the key advantages of obtaining a Seychelles Crypto License
Seychelles is attracting crypto entrepreneurs for several reasons:
- Reputable offshore jurisdiction: Seychelles is well-known for its solid and incentivizing 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 to prepare 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 International Business Companies (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.
Positive results, positive feedback
As a result of the fruitful cooperation with LegalBison, Yellow Card obtained a VASP registration, fast and without any legal complications.
LegalBison helped us navigate a space that’s often uncertain and complex, which gave us the confidence to move forward with our project.
LegalBison excels at adapting to challenges and demonstrates a perfect understanding of our business needs.
Quick set-up and straightforward process. It was a smooth process, we are happy to have chosen LegalBison as our Partner for incorporations, globally.
Very proactive, responsive, and able to provide solutions and advice. The firm is familiar with the new industry of blockchain and cryptocurrency
I highly recommend Legal Bison to any entrepreneur or business seeking top-notch services for their company formation. Their commitment to excellence and customer satisfaction is truly commendable.
What are the application requirements for a Seychelles Crypto License
Your first step to securing a crypto license in the Seychelles is to acknowledge what has to be done and fulfilled first.
| Duration | from 4 months |
| Local office | Yes, mandatory |
| Local director | Yes (can be a nominee) |
| Accounting and auditing | Yes, mandatory |
| Economic substance | Local personnel, directors and managers meeting physically in the Seychelles |
| Government fee | 75,000 SCR (5,500 USD) for application
Annual fee depending on activity from the second year |
| Corporate income tax (CIT) | 1,5% |
| Withholding tax (WHT) | 15% |
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 fulfill 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 notarized passport copies, proof of address, CVs, and police clearance certificates for these individuals;
- 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;
- 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;
- 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 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.
Don’t be intimidated by the requirements. LegalBison will ensure your safely comply with all of them. We have customizable templates for the business plan, checklists for documents, and local partnerships to satisfy resident director and office needs. Many of these requirements, like having properly set policies and a local director, are similar to other jurisdictions’ demands, though the Seychelles’ requirements are more flexible and cost-effective than stricter regulators.
What is the step-by-step licensing process in the Seychelles?
Obtaining the Seychelles crypto license involves completing a few steps. The VASP license application process is governed by the Virtual Asset Service Providers Act and requires careful preparation to ensure regulatory compliance for all virtual asset related activities. Applicants who obtain the license will become reporting entities under Seychelles’ law, meaning they are subject to ongoing compliance and reporting obligations.
Thanks to our experience, we can execute many steps in parallel to save you time. Here’s how the journey typically unfolds:
Step 1: Seychelles company formation
The first step is to establish your legal entity. We will:
- Reserve a company name and prepare incorporation documents;
- Incorporate the company as an International Business Company with the Seychelles Registrar (through the FSA). This can be done rapidly – often within 2-3 business days once due diligence is passed;
- Appoint directors and shareholders. We’ll file the initial directors (including the required resident director) and share allocations as you desire. At least one director is needed; corporate directors are allowed for IBCs, but for licensing, natural persons are preferred;
- Registered office setup: LegalBison will provide a registered address in Mahé, Seychelles and act as your local agent. Please note that maintaining a physical office and demonstrating physical presence in Seychelles are essential for meeting substance requirements and complying with local regulatory standards.
Output: Company Certificate of Incorporation, Memorandum & Articles of Association, and other constitutive documents are obtained. You now have a Seychelles company ready to apply for the license.
Step 2: Preparation of the compliance package
This is the most critical part. Our team will work closely with you to compile:
- Business plan redaction, by detailing your crypto business model, complete with financial projections and compliance architecture. We tailor this to emphasize how you’ll meet FSA requirements. The business plan should also include a risk assessment as part of the compliance documentation, identifying and addressing potential risks in your operations;
- Redaction of customized AML/KYC policies and client onboarding procedure, satisfying the standards of Seychelles’ AML Act and the 2024 VASP Act. The compliance package must also address obligations under the terrorism act, ensuring measures are in place to prevent terrorist financing;
- Documents on risk management, internal controls, cybersecurity (how you’ll protect users’ assets and data), and governance (roles of directors, escalation procedures);
- Fit & proper documents for the personnel’s assessment. We collect notarized IDs, proofs of address, CVs, police clearance, and financial statements for all key persons. You must provide information on key personnel, demonstrating their qualifications and compliance with fit and proper criteria;
- Application form, completed as per the expectations of the FSA, which includes detailed questionnaires about your planned services, sources of liquidity, target customer base, etc. The compliance form must also be completed and submitted as part of the application to fulfill regulatory requirements.
During this stage, we might arrange a pre-application meeting with the FSA (or an email consultation) to clarify any novel aspects of your application. This pre-emptively addresses regulators’ concerns and can smooth the review later.
Step 3: Filing the license application with the Seychelles Financial Services Authority
Once all documents are in order, we will:
- Submit the application to the Seychelles FSA’s Licensing Division. This includes the application form and all supporting documents from Step 2. All virtual asset activities, including issuing, offering, or providing services such as DeFi, NFTs, and stablecoins, require licensing under Seychelles law unless specifically exempted; this includes all virtual asset related activities as defined under Seychelles law;
- Application fee payment to the FSA; they will not start review until payment is confirmed;
- Regulator liaison with the FSA during the several weeks of review. During this period, they may pose queries or requests for additional information. Common queries include clarification on business model details or requests to slightly tweak the AML policy. LegalBison will handle all communications with the FSA on your behalf, promptly addressing any questions;
- Approval and licensing. If all goes well, FSA will issue an Approval-in-Principle followed by the formal Crypto Service Provider License. The license certificate will list the activities you’re authorized for (exchange, etc.). Congratulations – you are now a licensed Seychelles crypto operator!
Timeline: The FSA’s official timeline is ~60–90 days for a VASP application. In our experience, approvals have taken ~3 months from submission . Delays can occur if documentation is incomplete, but we mitigate that by thorough prep. Compared to many jurisdictions, this is a relatively quick turnaround.
Step 4: Post-licensing setup (Banking & Operations)
We don’t wait idly during the FSA’s review. In parallel, LegalBison assists with critical post-licensing arrangements:
- Corporate bank account opening: we identify a suitable bank or payment institution to open a corporate account for your Seychelles entity. Note: Having a local bank account is advantageous, since the FSA may require proof of capital deposit or want to see operational readiness. We prepare all bank compliance documents (company docs, business description, source of funds) and coordinate the account opening. This typically completes around the time your license is granted.
- Hiring and training staff: if you need to hire a local compliance officer or additional staff, we assist in recruiting and onboarding them. We can also provide AML training to your team as required by the regulations.
- Technical setup: if you’re launching an exchange, we can connect you with partners for liquidity provision, KYC software integration, etc. By the time the license is in hand, you should ideally have your platform ready to go live, pending final compliance checks. As part of operational readiness, it is essential to ensure that your systems and processes are designed to safeguard client assets, meeting regulatory requirements and protecting your clients.
Step 5: Receiving the license & commencing operations
With the license issued, you can officially commence your crypto business under the Seychelles’ law. We do a final check to ensure you meet any conditions on the license (occasionally FSA might impose a condition like an audit within 6 months or a report of first operations). LegalBison continues to support by:
- Publishing required notices (if any) or informing any local directories of your licensed status.
- Advising on ongoing compliance (filings to FSA, transaction monitoring, etc., see next section). Licensed entities are also required to submit annual audited financial statements to the FSA as part of their regulatory obligations.
In summary, from company setup to license in hand, you’re looking at around 3 to 4 months. We handle most of the heavy lifting – drafting documents, dealing with regulators, and local logistics – so you can focus on planning your business launch.
Costs and fees for a Seychelles Crypto License
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.
| Registered virtual assets activity | Minimum asset reserves | Activity description |
| Virtual Asset Wallet Provider | 75,000 USD | Holds and manages digital assets (like crypto or NFTs) securely for clients. |
| Virtual Asset Exchange | 100,000 USD | Operates a platform where clients can trade digital assets for traditional money or other digital assets. |
| Virtual Asset Broking | 50,000 USD | Acts as an intermediary to help clients buy, sell, or hold digital assets using other exchanges or wallet providers. |
| Virtual Asset Investment Provider | 25,000 USD | Manages investment portfolios containing digital assets for clients or gives them advice on investing in digital assets. |
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 like Switzerland, and the 0% tax environment yields long-term savings that far outweigh initial costs.
Compliance and maintenance requirements after securing a Seychelles crypto license
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’ meeting 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 fulfill 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.
Common misconceptions about the Seychelles VASP license
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 the FATF 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 register 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)
What are the texts composing the legal framework of the Seychelles crypto license
the framework governing Virtual Asset Service Providers (VASPs) in Seychelles comprises the following:
The Virtual 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 by a 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, 2020 (Act 5 of 2020) defines VASPs as reporting entities and outlines mandatory AML/CFT obligations, including customer due diligence, record-keeping, suspicious transaction reporting, and compliance officer requirements.
The Financial 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.
The International 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.
The Companies 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.
Costs and fees for a Seychelles Crypto License
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.
| Registered virtual assets activity | Minimum asset reserves | Activity description |
| Virtual Asset Wallet Provider | 75,000 USD | Holds and manages digital assets (like crypto or NFTs) securely for clients. |
| Virtual Asset Exchange | 100,000 USD | Operates a platform where clients can trade digital assets for traditional money or other digital assets. |
| Virtual Asset Broking | 50,000 USD | Acts as an intermediary to help clients buy, sell, or hold digital assets using other exchanges or wallet providers. |
| Virtual Asset Investment Provider | 25,000 USD | Manages investment portfolios containing digital assets for clients or gives them advice on investing in digital assets. |
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 like Switzerland, and the 0% tax environment yields long-term savings that far outweigh initial costs.
Compliance and maintenance requirements after securing a Seychelles crypto license
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’ meeting 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 fulfill 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.
Common misconceptions about the Seychelles VASP license
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 the FATF 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 register 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)
What are the texts composing the legal framework of the Seychelles crypto license
the framework governing Virtual Asset Service Providers (VASPs) in Seychelles comprises the following:
The Virtual 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 by a 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, 2020 (Act 5 of 2020) defines VASPs as reporting entities and outlines mandatory AML/CFT obligations, including customer due diligence, record-keeping, suspicious transaction reporting, and compliance officer requirements.
The Financial 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.
The International 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.
The Companies 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.
FAQ – Seychelles Crypto License
Yes. Seychelles does not consider crypto an official currency, but crypto activities are legal and now regulated. The government actively welcomes fintech innovation. As of 2026, anyone providing crypto services (exchange, wallet, etc.) must obtain the FSA license.
If you are a Seychelles based company (f.e. a BC or IBC) that intends to offer virtual asset exchanges services or become a virtual asset wallet provider (custodial services), then yes. If you are though a company outside of the Seychelles and want to offer specific services not possible in with your current domestic company, a second legal entity with VASP license could be a solution. Many virtual asset businesses segregate their product lines like investment services, investment advice or even cloud based mining facilities into different legal entities in multiple jurisdictions to avoid offering prohibited activities. This ensures especially broader advertisement abilities, lower regulatory risk in case of regulatory changes, better rates with local payment service providers or simply different capital gains taxes. As you see, it all depends on what virtual asset related services your current license allows you to provide, and what you are trying to achieve. The Seychelles VASP license notoriously allows for a wider range of crypto activities than other jurisdictions such as MiCA for example. We advise talking with one of our specialists, for free.
There are no hard caps on transaction volumes in the license itself. As long as your compliance program ensure financial crime risk is adequately addressed and you comply with AML CFT reporting for large transactions, you can facilitate such transactions. Seychelles does not impose strict volume-based supervision fees (aside from a nominal annual fee which is not volume-dependent). This is advantageous versus some countries that charge fees based on turnover. Of course, if you grew extraordinarily large, regulators worldwide (including Seychelles) would pay closer attention to the licensed virtual asset exchanges, but there is no preset limit. As an additional you could focus on maintaining strong compliance in line not only with the crypto industry best practices, but also with the recommendations of the Financial Action Task Force (FATF) no matter the scale.
For licensed Virtual Asset Service Providers (VASPs) operating as Seychelles International Business Companies (IBCs), income considered “assessable income in Seychelles” is subject to a specific tax rate. The Financial Services Authority’s guidelines state that licensed VASPs can benefit from a tax rate of 1,5% on this assessable income. The International Business Companies Act requires companies deriving such income to notify the Registrar and defines “assessable income” by referencing the Business Tax Act .
Yes, the Seychelles VASP framework brings ICO/ITO activities under regulatory oversight, offering a legal pathway where rules might be unclear in other jurisdictions. However, the VASP license itself does not automatically cover token issuance. To issue an ICO or similar tokens, the specific offering must be registered with the FSA. A company holding a VASP license is permitted to promote a registered ICO. Before any ICO can be issued or promoted, an application for registration must be submitted, and the FSA must either provide written notification of ‘no objection’ or a 30-working day period must pass without objection. This process ensures compliance with specific conditions, likely including whitepaper standards.
Any Offerings must be registered with the FSA and a whitepaper is mandatory. This implies that the issue of a token, without it being part of an offering (ICO), doesn’t require approval from the FSA. This distinguishes the Seychelles from other heavier regulations, such as MiCA in Europe.
Yes, if it holds it on the balance sheet and uses it as a storage of value or a mean of payment (in stablecoins). The question to answer is then: does the company’s activity fall under the regulatory scope? If your company in the Seychelles offers marketing or consulting services and accepts payment in crypto, a crypto license in the Seychelles is NOT necessary.
Yes! We are able to design a business plan for any kind of business venture. We have experience dealing the granting authority and we know their expectations from applicants.
Trading cryptocurrency for your own account in the Seychelles is not regulated and therefore does not need a license.
Only companies with the VASP license can perform crypto activities in the Seychelles. It is a strict requirement, written in the law.
Crypto trading profits are not taxed in the Seychelles.
Profits from a cryptocurrency company will be subject to the taxation rate of domestic companies, that is 25%, with a rebate to 15% on the first 1.000.000 Seychelles Rupees. A beneficial regime can apply to companies with sufficient economic substance in the Seychelles, lowering the tax rate to 1,5% of the gross income.
Start your Seychelles crypto business with LegalBison
Entering a regulated crypto market opens doors to banking, partnerships, and customer trust, especially with an offshore advantage that Seychelles provides. With the regulatory framework now in place, the sooner you obtain your Seychelles crypto license, the sooner you can operate globally with confidence.
LegalBison’s Seychelles Licensing Team will ensure a smooth journey from start to finish:
– We’ll advise you frankly in the initial consultation about the feasibility of your project under Seychelles law.
– Our experts will then handle the heavy paperwork and liaise with Seychelles authorities, minimizing your workload and speeding up approval.
– You’ll receive personalized guidance on business plan optimizations, meeting capital and compliance needs, and post-licensing operations. We have hands-on experience – for example, in 2024 we helped multiple fintech startups transition to compliance when Seychelles announced the new rules, so we know exactly what the FSA expects.
Ready to get started? Contact us today for a free consultation. We’ll discuss your crypto business goals and outline a step-by-step plan to secure your Seychelles Crypto License. With LegalBison as your partner, you can focus on building your product and team while we take care of the legal foundation.
Legal experts in designing solutions for crypto licensing worldwide.
Certified ACAMS consultant with 5+ years experience in compliance and FinTech regulations.