FameEX Hot Topics | Seychelles Passes Bill on Virtual Asset Regulation

The Seychelles National Assembly has passed a draft bill aimed at regulating virtual asset service providers (VASPs), as part of a broader strategy to manage risks associated with virtual assets. Introduced by Finance Minister Naadir Hassan, the bill seeks to ensure responsible operations by VASPs and prevent their misuse for illicit activities.

Key provisions of the bill require VASPs desiring licenses to establish operations under the Companies Act or the International Business Companies Act. Hassan outlined the licensing criteria, 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.”

The legislation also specifies that individual license seekers will not be considered and that entities already regulated by the Seychelles central bank must obtain additional approval from the bank. Moreover, all applicants are required to undergo a thorough evaluation process before they can operate as VASPs.

Hassan emphasized that the legislation covers various entities, including wallet service providers, virtual asset exchanges, and virtual asset investment providers, all of whom will require a license to operate. He stressed that the law aims to support innovation while simultaneously mitigating risks associated with money laundering, in accordance with Financial Action Task Force (FATF) recommendations.

The Seychelles Financial Services Authority (FSA) is tasked with implementing this law. The bill not only establishes a regulatory framework for VASPs but also mandates educational efforts to inform consumers and regulated entities about potential scams and the proper use of virtual assets. This measure is intended to foster a safer and more transparent environment for the burgeoning 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.