Regulatory AlertsSeychelles: crypto & digital assets regulation
RegulatedSeychelles VASP regime: FSA licensing under VASP Act; CFDs permitted under Securities Act
- Lead regulator
- Financial Services Authority (FSA)
- Also involved
- —
- Core law
- Virtual Asset Services Providers Act, 2020
- Entry capital
- —
- Approval timeline
- —
- Customer assets
- —
- Data protection
- —
- Sandbox
- —
Seychelles regulates virtual asset service providers (VASPs) through the Financial Services Authority (FSA) under the Virtual Asset Services Providers Act, 2020. The regime requires licensing or registration for core activities, with a transitional period ending in late 2024 for existing entities. Notably, the FSA has clarified that Contracts for Differences (CFDs) with virtual assets as underlying assets are permissible under the Securities Act, 2007, and do not constitute VASP activities, creating a distinct regulatory path for derivatives.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Exchange / trading platform | Licence[1] VASP licensing required for exchange services | — | — | FSA |
| Custody of client assets | Licence[1] VASP licensing required for custody services | — | — | FSA |
| Token issuance / public offering | Licence[1] ICO/NFT issuers must apply for licence or registration | — | — | FSA |
| Broker-dealer / OTC desk | Uncertain[2] CFDs with VAs permitted under Securities Act, not VASP | — | — | — |
| Stablecoin issuance | Uncertainverify with regulator No specific stablecoin regime identified in sources | — | — | — |
| Crypto payments acceptance | Licence[1] VASP licensing required for payment services | — | — | FSA |
| Mining / staking services | Uncertainverify with regulator Not explicitly defined as VASP activity in sources | — | — | — |
| Advisory / portfolio management | Uncertainverify with regulator No specific advisory regime identified in sources | — | — | — |
New — what changed recently
- 2025-01-01Circular No. 3 of 2025 — Clarified that CFDs with virtual assets as underlying assets are permissible under the Securities Act and do not constitute VASP activities.[2]
- 2025-01-01Application Review Requirements — Initiated detailed application review for transitional VASPs, highlighting governance and operational readiness deficiencies.[3]
- 2024-01-01Circular No. 7 of 2024 — Set 31 December 2024 as the deadline for existing VASPs and ICO/NFT issuers to submit licence or registration applications.[1]
- 2024-01-01Circular No. 4 of 2024 — Enforced prohibition on unlicensed entities using designated blockchain and cryptocurrency-related terms in business names.[4]
Market-entry checklist
- 1Submit VASP licence applicationExisting VASPs must apply by 31 December 2024 to qualify for the transitional period under Circular No. 7 of 2024.
- 2Ensure operational readinessPrepare detailed submissions reflecting governance structures and operational readiness as per FSA's 2025 application review expectations.
- 3Avoid prohibited naming termsDo not use designated blockchain or cryptocurrency-related terms in business names unless licensed or registered under the VASP Act.
- 4Clarify CFD regulatory pathIf offering CFDs with virtual assets, note that these fall under the Securities Act, 2007, not the VASP Act, per Circular No. 3 of 2025.
Sources
- Circular No. 7 of 2024: Transitional Period Under the VASP Act · 2024-10-23
- Circular No. 3 of 2025: Contract for Differences with Virtual Asset as an Underlying Asset · 2025-02-28
- Application Review Requirements and Expectations for Transitional Virtual Asset Service Providers · 2025-11-19
- Circular No. 4 of 2024: Prohibition on Certain Words Under the VASP Act · 2024-09-02