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Seychelles: crypto & digital assets regulation

Regulated

Seychelles VASP licensing under VASP Act; FSA enforcement of transitional rules and naming restrictions

Lead regulator:
Financial Services Authority (FSA)
Key law:
Virtual Asset Services Providers Act
Last updated:
2026-07-12

The Financial Services Authority (FSA) regulates virtual asset service providers (VASPs) and ICO/NFT issuers under the Virtual Asset Services Providers Act. Entities operating as of 1 September 2024 were required to submit complete licence or registration applications by 31 December 2024 to qualify for the statutory transitional period, with non-compliant entities facing immediate enforcement action.

The FSA is actively enforcing application review requirements for transitional VASPs, focusing on operational readiness and governance structures, while prohibiting unlicensed entities from using designated blockchain and cryptocurrency-related terms in their business names under Section 40(2) of the Act.

Additionally, the FSA clarified that Contracts for Differences (CFDs) with virtual assets as underlying assets are permissible under the Securities Act, 2007, and do not constitute virtual asset services under the VASP Act, distinguishing derivative trading from core VASP activities.

Who regulates

  • Financial Services Authority (FSA)

    Primary supervisor for VASPs, ICOs, and NFTs; enforces licensing, naming restrictions, and transitional compliance.

    [1][2][3][4]

Core laws & rules

  • Virtual Asset Services Providers Act (N/A)

    Establishes the licensing and registration regime for VASPs, ICOs, and NFT issuers, including transitional provisions and prohibitions on unlicensed entities using specific terminology.

    [2][3][4]

  • Securities Act (2007)

    Governs the permissibility of Contracts for Differences (CFDs) with virtual assets as underlying assets, distinguishing them from VASP activities.

    [1]

Licensing & registration

  • Transitional VASP Licence/Registration

    Existing VASPs and ICO/NFT issuers operating as of 1 September 2024 must submit complete applications by 31 December 2024 to qualify for the transitional period. The FSA conducts detailed reviews of operational readiness and governance. Timeline: Applications due by 31 December 2024 for entities operating as of 1 September 2024.

    [2][3]

Restrictions & warnings

  • Unlicensed and unregistered entities are prohibited from using designated blockchain and cryptocurrency-related terms in their business or trade names under Section 40(2) of the VASP Act.

    [4]

  • Entities failing to submit complete licence or registration applications by the 31 December 2024 deadline face immediate enforcement action.

    [3]

Direction of travel

  • The FSA is intensifying oversight of transitional VASPs through detailed application reviews, focusing on governance and operational readiness, indicating a move towards stricter compliance enforcement.

    [2]

Sources

  1. Circular No. 3 of 2025: Contract for Differences with Virtual Asset as an Underlying Asset · 2025-01-01
  2. Application Review Requirements and Expectations for Transitional Virtual Asset Service Providers · 2025-01-01
  3. Circular No. 7 of 2024: Transitional Period Under the VASP Act · 2024-01-01
  4. Circular No. 4 of 2024: Prohibition on Certain Words Under the VASP Act · 2024-01-01

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This guide is compiled automatically from 4 primary-source documents published by Seychelles's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.