Regulation of Cryptocurrencies in Seychelles by 2023

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The legal frameworks under which crypto regulation is carried out in Seychelles create pretty loyal circumstances for ICO ventures. In this context, digital assets do not function as money or as an accepted form of payment provided by banks or other financial institutions. Conversely, cryptocoins see higher usage on a regional scale. This means that crypto is not just tolerated but governed by particular regulations in Seychelles.

In light of the growing number of transactions using digital assets, the Committee on Preventing the Illegal Circulation of Monetary Means and the Funding of Terrorism has defined a firm stance on behalf of the state with respect to any virtual currencies that may exist. Control over Seychelles’ cryptocurrency exchanges and the flow of VASPs registered there in accordance with FATF guidelines is a priority for the jurisdiction.

Obtain a Blockchain and Cryptocurrency License in Seychelles

Businesses that facilitate the trading of digital assets like Filecoin and other cryptocurrencies, non-fungible tokens, and utility tokens are referred to as VASPs. Seychelles government officials have completed a digital risk assessment on the whole country in order to better define how they would be keeping tabs on crypto licenses.

The banking industry, corporate service providers, the insurance industry, the securities industry, and experts in law, accounting, and auditing were all present. This led to the discovery of several local VASPs, all of which are subject to the same set of rules and regulations due to the lack of a universally accepted organizational framework. Efforts are now underway in Seychelles to create a system that would hopefully reduce VASP-related risks.

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Existing licensees in the fiscal area, mainly banks, are joined by new entrants in the cryptocurrency industry, who are granted the same Seychelles crypto license. Local VASP license is compliant with 15 FATF standards.

One of the primary reasons more VASPs are opening in this state is because of the more relaxed conditions and rules that function as standards for such organizations, together with a high degree of security and privacy. Authorities of the jurisdiction and private enterprises have agreed to contribute to the active marketing of crypto-currencies on the islands as they are already actively exhibiting their capabilities, emerging in operations internationally.

Here is a summary of Acting Director of Financial Services Division Randolph Samson’s report to the business community:

  • local virtual application service providers (VASPs) have set themselves up as international business corporations (IBCs), indicating the interest of foreign businesspeople in the local market.Β 
  • a large number of cryptocurrency startups have also set up shop, drawing significant investment from local business owners.

Upon further inspection, it was discovered that not all Seychelles-certified businesses really operate inside the jurisdiction. By requiring bitcoin exchanges operating out of Seychelles to get licenses, residents will have a better idea of which businesses are really represented there. The state is now making efforts to keep an eye on the cryptocurrency licensing system and exert more authority over cryptocurrency businesses.

Get in touch with Fintech Harbor Consulting if you need assistance with Seychelles business registration or acquiring a forex license (https://www.fintecharbor.com/forex-license-in-seychelles/). The company will help you obtain this license, as well as provide any advice and assistance you can. Professionals here are always ready for teamwork.

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