Elite Legal Advisory for Securing VASP License in Seychelles
Obtaining a VASP license in Seychelles represents a strategic market entry option for digital asset businesses, as the jurisdiction stands among the latest offshore financial centres to implement a comprehensive regulatory framework under the Virtual Asset Service Providers Act, 2024, administered by the Financial Services Authority (FSA). LegalBison provides full-cycle advisory support for entities pursuing Seychelles VASP authorisation, from jurisdictional analysis through post-licensing compliance.
Overview of Seychelles VASP Authorization
A crypto license in Seychelles constitutes the formal regulatory authorization required for entities seeking to provide virtual asset services within or from the jurisdiction, with the Financial Services Authority (FSA) serving as the competent supervisory body responsible for licensing, compliance monitoring, and enforcement under the Virtual Asset Service Providers Act, 2024. The licensing framework, which entered into force on 1 September 2024, establishes comprehensive obligations under the Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020, pursuant to the spirit of/aligned with FATF Recommendation 15, requiring licensed VASPs to implement robust customer due diligence procedures, transaction monitoring systems, and suspicious transaction reporting mechanisms.
The scope of authorized activities under the Seychelles VASP regime encompasses:
- cryptocurrency exchange operations (fiat-to-crypto and crypto-to-crypto)
- custodial wallet services
- brokerage and trading services
- token distribution services when conducted in connection with licensed VASP activities
- advisory and portfolio management services
Holding a valid FSA licence provides entities with a regulatory authorization that facilitates engagement with international banking partners, correspondent institutions, and a global client base, whilst the substance requirements mandate local directorship and physical office presence within the jurisdiction. LegalBison offers comprehensive advisory services throughout the authorization process, from initial regulatory assessment and documentation preparation to post-licensing compliance support.
The legislative architecture governing a VASP license in Seychelles comprises two principal statutory instruments: the Virtual Asset Service Providers Act, 2024, which establishes the licensing categories, operational requirements, and supervisory obligations applicable to virtual asset service providers, and the Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020, which imposes comprehensive KYC standards, transaction monitoring requirements, and suspicious transaction reporting obligations upon all licensed entities. The Financial Services Authority (FSA) functions as the competent regulatory body with responsibility for:
- Issuing, suspending, and revoking VASP licences
- Conducting compliance inspections and investigations
- Enforcing regulatory standards and imposing penalties
Suspicious Transaction Reports (STRs) must be submitted to the Seychelles Financial Intelligence Unit (FIU).
The FSA necessitates that all VASPs operating within or from Seychelles maintain robust AML/CFT compliance programmes. LegalBison provides advisory support in navigating this regulatory framework, including AML/CFT policy development and ongoing compliance monitoring.
The Virtual Asset Service Providers Act, 2024 delineates a comprehensive regulatory perimeter encompassing the principal categories of virtual asset services that require authorisation from the Financial Services Authority (FSA) prior to commencement of operations within or from the jurisdiction. Entities pursuing a VASP license in Seychelles must determine which specific service categories apply to their business model, as the FSA assesses applications against the defined scope of activities and imposes corresponding compliance obligations.
The regulated activities under the Seychelles framework include:
- Virtual asset exchange services (crypto-to-crypto and crypto-to-fiat conversion)
- OTC trading operations and principal dealing
- Custodial wallet services for safeguarding client digital assets
- Virtual asset transfer services
- Brokerage and intermediation services
- Token issuance, ICO facilitation, and distribution platform operations
Seychelles company formation constitutes a prerequisite for licence application, with applicants required to establish either a domestic company under the Companies Act, 1972, or an International Business Company (IBC) under the International Business Companies Act, 2016, before submitting their VASP application to the FSA.
LegalBison assists clients in structuring appropriate corporate vehicles and aligning proposed service offerings with the applicable regulatory categories.
Holders of a VASP license in Seychelles are subject to strict prohibitions and operational restrictions established under the Virtual Asset Service Providers Act, 2024 and the Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020, with non-compliance exposing licensees to enforcement actions including licence revocation, financial penalties, and potential criminal liability.
The Financial Services Authority (FSA) expressly prohibits the following conduct for entities holding a crypto license:
- Operating virtual asset services without valid FSA authorisation
- Maintaining anonymous accounts or processing transactions for unverified customers
- Heightened AML/CFT measures are required for high-risk jurisdictions; sanctioned jurisdictions are prohibited
- Concealing or misrepresenting beneficial ownership information
- Failing to respond to FSA information requests within prescribed timeframes
- Operating inadequate AML/CFT controls, including deficient transaction monitoring systems
- Providing services outside the scope of the granted licence authorisation
The FSA conducts compliance inspections and actively monitors for entities falsely claiming regulatory status in Seychelles, with enforcement actions including company strike-off and public statements identifying non-compliant operators. LegalBison assists licensed entities in maintaining ongoing compliance through AML/CFT programme reviews, regulatory reporting support, and supervisory liaison services.
The Financial Services Authority (FSA) evaluates VASP licence applications against a comprehensive set of eligibility criteria established under the Virtual Asset Service Providers Act, 2024, with requirements spanning corporate structure, capital adequacy, personnel suitability, compliance infrastructure, and operational capacity.
| Requirement | FSA Expectations |
| Corporate Structure | Seychelles IBC or domestic company registration, local registered agent, physical office, full UBO disclosure |
| Capital Adequacy | VASPs must keep monetary reserves equal 1:1 to liabilities that they have towards their clients; FSA assesses financial capacity case-by-case |
| Fit and Proper Assessment | Background verification of directors, shareholders, and UBOs; absence of criminal history; demonstration of relevant expertise |
| Compliance Infrastructure | AML/CFT policies conforming to the AML/CFT Act, 2020; designated compliance officer; documented business-wide risk assessment |
| Operational Capacity | Cybersecurity measures, data protection protocols, IT infrastructure, documented operational procedures, reporting systems |
The FSA requires at least two natural person directors, one of whom must be a Seychelles resident, alongside evidence of adequate financial resources maintained in a licensed financial institution. LegalBison assists applicants in structuring compliant corporate vehicles, sourcing qualified personnel, and preparing regulatory-grade documentation packages.
Licensed VASPs in Seychelles must implement comprehensive Customer Due Diligence (CDD) procedures under the Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020, including client identity verification, beneficial ownership identification, and ongoing monitoring of business relationships, with Enhanced Due Diligence (EDD) required for high-risk clients, as designated under national risk assessments.
The AML/CFT compliance framework for Seychelles-licensed VASPs encompasses the following core obligations:
- Customer Due Diligence (CDD/EDD): identity verification, UBO identification for legal entities, ongoing relationship monitoring
- Transaction Monitoring: real-time detection of suspicious activity and red flag identification
- Regulatory Reporting: filing of Suspicious Transaction Reports (STRs) with the Financial Intelligence Unit (FIU)
- Risk-Based Approach: regular business-wide risk assessments and client risk classification
- Record Retention: maintenance of all compliance documentation for a minimum of seven years
- Staff Training: mandatory ongoing AML/CFT education for all relevant personnel
LegalBison supports licensed entities in designing and implementing compliant AML/KYC frameworks, including policy development, transaction monitoring system configuration, and personnel training programmes.
The Seychelles VASP authorisation process typically ranges from 2–3 months from initiation to licence issuance, depending on FSA workload and completeness of documentation; this timeframe comprises corporate registration and registered agent appointment (approximately 1–2 weeks), preparation of regulatory documentation including AML/CFT policies and business plans (2–4 weeks), and FSA application review (4–8 weeks). Actual timelines remain contingent upon documentation completeness and applicant responsiveness to FSA information requests. LegalBison coordinates each phase to minimise delays and ensure regulatory-grade submissions.
The Seychelles VASP framework presents several structural characteristics relevant to jurisdictional selection for virtual asset businesses:
- Reasonable authorisation timeline (from 3 months): enables regulated market entry potentially faster than EU MiCA or Asian licensing regimes
- Tax-neutral environment for international operations: no transaction taxes or levies on cross-border virtual asset activities for IBCs
- Streamlined regulatory structure: clear FSA requirements and defined AML/KYC compliance standards with reduced administrative complexity
- Global market access: licensed VASPs may service international clients without geographic restrictions (excluding sanctioned jurisdictions)
- Established offshore infrastructure: mature ecosystem of corporate service providers, compliance specialists, and legal professionals supporting VASP operations
LegalBison assists clients in evaluating whether the Seychelles framework aligns with their operational requirements and target markets.
Engaging specialised advisory services for Seychelles VASP registration reduces the risk of application refusal by ensuring documentation conforms to FSA requirements from the outset, whilst eliminating the need for applicants to independently navigate the Virtual Asset Service Providers Act, 2024, and AML/CFT regulatory framework. LegalBison assembles cross-departmental teams comprising corporate lawyers, crypto licensing specialists, and compliance experts to streamline the authorisation process and minimise operational and regulatory risks throughout the application lifecycle.
VASP Licensing Services by LegalBison
LegalBison delivers end-to-end VASP licensing support for Seychelles, assembling dedicated project teams comprising corporate lawyers, licensing specialists, and compliance officers tailored to each client’s requirements. The service scope encompasses:
- Business model analysis: evaluation of proposed activities to determine VASP applicability and optimal corporate structuring
- Corporate structuring: IBC registration and banking or fintech account facilitation
- Compliance framework development: preparation of AML/KYC policies, business-wide risk assessments, and internal control procedures conforming to FSA standards
- Application management: compilation of the complete documentation package, submission to the FSA, and regulatory liaison through to licence issuance
- Post-registration support: ongoing AML compliance monitoring, regulatory reporting, policy updates, and inspection preparedness
This integrated approach ensures continuity from initial jurisdictional assessment through operational launch and ongoing supervisory obligations.
FAQ
No. Applicants must establish a Seychelles entity, either an IBC under the International Business Companies Act, 2016, or a domestic company under the Companies Act, 1972, prior to submitting a VASP application to the FSA.
Yes. The FSA mandates substance requirements, including at least one resident director, a physical office, and local board meetings to demonstrate operational presence within the jurisdiction.
Licences require ongoing compliance obligations including regulatory reporting, AML/CFT programme maintenance, and adherence to FSA supervisory requirements The license does not need to be renewed, it is valid indefinitely.
