Cryptocurrency is legal in Seychelles under a comprehensive regulatory framework established by the Virtual Asset Service Providers Act, 2024. The Act came into force on September 1, 2024, creating a structured licensing regime for all Virtual Asset Service Providers operating in or from Seychelles (1). The Financial Services Authority is designated as the regulatory body responsible for licensing, supervision, and enforcement under the Act, ensuring entities comply with international standards including anti-money laundering and counter-terrorism financing obligations aligned with Financial Action Task Force Recommendations (1).
The regulatory framework commenced in 2021 following the Financial Action Task Force's amendment to Recommendation 15 dealing with New Technologies, prompting the National Anti-Money Laundering Committee to implement measures for effective regulation of VASPs (2). All crypto companies operating in or from Seychelles, including exchanges, wallet providers, ICOs, and NFT platforms, must apply for a license by December 31, 2024, after which unlicensed operations will be illegal (1). The law provides an authorization framework for wallet service providers, exchange service providers, virtual asset broking, and investment providers, along with registration requirements for ICOs and NFTs (2).
"Eligible applicants are restricted to domestic companies and International Business Companies. Individuals are not eligible for licensing. A limitation has been placed on entities which hold a licence under the Financial Institution Act, 2004 to apply for approval from the Central Bank of Seychelles, prior to submitting an application."
The Act defines virtual assets as digital representations of value that can be digitally traded or transferred and used for payment or investment purposes, explicitly excluding digital representations of fiat currencies, securities, and other financial assets (1). Failure to obtain a license carries severe penalties, with unlicensed operations subject to fines up to USD 350,000, imprisonment for up to 15 years, or both (1). Seychelles has positioned itself as a balanced jurisdiction offering regulatory clarity while maintaining pro-business policies, with approximately 20% of global crypto exchanges registered in the country, including leading platforms like HTX, BitMEX, and KuCoin (1).
Source:
https://charltonsquantum.com/wp-content/uploads/docs/seychelles-crypto-guide.pdf
https://fsaseychelles.sc/vasp/introduction-to-vasp
Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
