FameEX Hot Topics | Seychelles Approves Virtual Asset Regulation Bill

The Seychelles National Assembly has approved a draft bill designed to regulate virtual asset service providers (VASPs), marking a significant step in the nation's strategy to mitigate risks associated with virtual assets. Finance Minister Naadir Hassan presented the bill, which aims to ensure VASPs operate responsibly and are prevented from engaging in illicit activities.

The bill mandates that VASPs wishing to obtain licenses must set up operations under the Companies Act or the International Business Companies Act. Hassan detailed the criteria for licensing, stating, “An applicant must demonstrate a substantial presence in Seychelles, such as having a resident director, a local office with competent staff, and all records being accessible from that office.”

Additionally, the legislation clarifies that individuals seeking licenses will not be considered, and that entities currently regulated by the Seychelles central bank are required to secure approval from the bank. Furthermore, all applicants must undergo a comprehensive evaluation process before being permitted to operate as VASPs.

Hassan further highlighted that the law applies to various operators in the sector, including wallet service providers, virtual asset exchanges, and virtual asset investment providers, all of whom will need a license to operate. He underscored that the law is designed to foster innovation while addressing risks related to money laundering, aligning with Financial Action Task Force (FATF) guidelines.

The Seychelles Financial Services Authority (FSA) has been designated to implement this law. In addition to establishing a regulatory framework for VASPs, the bill also includes provisions for educating consumers and regulated entities about potential scams and the appropriate use of virtual assets, aiming to create a safer and more transparent environment for the growing virtual asset market in Seychelles.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.