Regulatory AlertsSeychelles: fintech & payments regulation
RegulatedVASP licensing via FSA under VASP Act; Central Bank governs banking interface
- Lead regulator
- Financial Services Authority (FSA)
- Also involved
- CBS (banking/FX) · NFIU (AML)
- Core law
- Virtual Asset Service Providers Act, 2020
- Entry capital
- SCR 5m (VASP)
- Approval timeline
- 3-6 months
- Customer assets
- Segregated in licensed custodian bank
- Data protection
- Data Protection Act, 2023 · DPSC
- Sandbox
- Yes - FSA Regulatory Sandbox
Seychelles regulates Virtual Asset Service Providers (VASPs) under the VASP Act, 2020, supervised by the Financial Services Authority (FSA). The regime requires a local presence, fit-and-proper directors, and a minimum capital of SCR 5 million. The Central Bank of Seychelles (CBS) oversees traditional banking and foreign exchange, while the FSA handles securities and insurance. The regulatory environment is active, with recent transitional periods for existing operators to secure licenses.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicenceVASP Licence[1] Requires local registered office and fit-and-proper directors | SCR 5m | 3-6 months | FSA |
| E-money & wallet issuance | LicenceVASP Licence[1] Digital asset issuance falls under VASP Act scope | SCR 5m | 3-6 months | FSA |
| Domestic money transfer | LicenceVASP Licence[1] Domestic transfers of virtual assets require VASP license | SCR 5m | 3-6 months | FSA |
| Cross-border remittance | LicenceVASP Licence[1] Cross-border VASP transfers regulated under VASP Act | SCR 5m | 3-6 months | FSA |
| Agent network | LicenceVASP Licence[1] Agent networks must be part of licensed VASP structure | SCR 5m | 3-6 months | FSA |
| Open banking / account information | Uncertainverify with regulator No specific open banking framework identified | — | — | — |
| Foreign-exchange services | LicenceBureau de Change Licence[2] Traditional FX requires CBS license; VASP FX under FSA | SCR 500k | 1-3 months | CBS |
New — what changed recently
- 2025-01-01Circular No. 1 of 2025 — Enactment of Securities (Amendment) Act, 2024 and Amended Regulations[3]
- 2024-01-01Circular No. 7 of 2024 — Transitional Period Under the VASP Act[1]
- 2024-01-01Securities (Amendment) Act, 2024 — Modernize licensing frameworks and regulatory oversight under the Securities Act Cap. 208[4]
Market-entry checklist
- 1Establish local registered officeSecure a physical office in Seychelles as required by VASP Act guidelines.
- 2Secure SCR 5m capitalDemonstrate minimum paid-up capital of SCR 5 million for VASP licensing.
- 3Appoint fit-and-proper directorsEnsure all directors and key personnel pass FSA fit-and-proper tests.
- 4Submit VASP applicationFile comprehensive application with FSA including operational manuals and AML policies.
- 5Open segregated bank accountEstablish a customer asset segregation account with a licensed local bank.