Seychelles Compliance Report

Generated 2026-09-22

Partially Regulated

Regulatory Overview

Regulatory Status: Some rules exist but significant gaps; draft legislation or limited guidance
Key Regulator(s): Financial Services Authority, Ministry of Finance and Public Service Delivery
Primary Legislation: Virtual Assets Services Provider (VASP) Act, Official Instrument No. 12 of 2023,, Seychelles VASP Regulation Update 2024: What Founders ..., Crypto regulation in Seychelles 2023, No primary legislation, act, regulation, or official instrument number related t, The source provides zero information on crypto regulation, making it impossible
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Individuals and Corporations (excluding real estate): Seychelles generally does not impose a capital gains tax on the sale of assets, including virtual assets, for individuals or most corporate entities (such as International Business Companies or IBCs) unless the gain arises from the sale of immovable property situated in Seychelles.. Therefore, profits derived from the appreciation and sale of cryptocurrencies are typically not subject to capital gains tax in Seychelles.. Passive Investment: If an individual buys and holds virtual assets as a passive investment, and profits are realized through their sale (as capital gains), these are generally not subject to income tax due to the absence of a general capital gains tax.. Professional Trading/Mining/Business Activity: If an individual engages in crypto activities (e.g., active day trading, extensive mining operations, providing crypto-related services) in a manner that constitutes a regular business or employment, the profits derived from these activities could be classified as business income or employment income. This income would then be subject to the standard personal income tax rates (Progressive tax rates apply to employment income; business income is subject to Business Tax). However, the definition of "business" for crypto activities by individuals can be nuanced.. International Business Companies (IBCs): Historically, IBCs were exempt from all taxes on income derived from outside Seychelles. However, due to international tax reforms (e.g., BEPS and EU requirements), this has changed.

Key Facts

aml Virtual Asset Service Providers Act, 2022 (VASP Act 2022): This is the cornerstone legislation specifically regulating VASPs. It mandates licensing, registration, and compliance with AML/CFT obligations for entities engaged in virtual asset services. Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 (AML/CFT Act 2020): This is the overarching AML/CFT legislation in Seychelles, applying to all designated non-financial businesses and professions (DNFBPs) and financial institutions, which now explicitly includes VASPs. The VASP Act builds upon and references the requirements of this broader AML/CFT Act. Financial Intelligence Unit Act, 2006 (as amended): This Act establishes the Financial Intelligence Unit (FIU) and outlines its powers and responsibilities, including receiving and analyzing suspicious transaction reports. Anti-Terrorism Act, 2004 (as amended): Addresses the financing of terrorism and related offenses. Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. Transfer of virtual assets. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.
custody Requirement for License: Any person providing "custody or administration of virtual assets or instruments enabling control over virtual assets" as a business in or from Seychelles must obtain a VASP license from the FSA. Regulatory Reference: Virtual Assets Service Providers Act, 2022, Section 5(1). Application Requirements: To obtain a VASP license for custodial services, applicants must satisfy stringent criteria, including: Fit and Proper Test: The applicant, its directors, and senior management must meet "fit and proper" criteria. Business Plan: Submission of a comprehensive business plan detailing operations, strategies, and internal controls. Internal Controls: Adequate internal control systems, accounting systems, and systems for safeguarding virtual assets. AML/CFT Compliance: Robust anti-money laundering (AML) and combating the financing of terrorism (CFT) policies and procedures, in compliance with Seychelles' AML/CFT framework and international standards. Risk Management: Adequate risk management frameworks and internal audit functions.
enforcement Entity Targeted: Numerous entities falsely claiming to be licensed or operating without proper authorization. While not always explicitly "crypto," many involve fraudulent investment schemes, forex trading, or brokerage services that often interact with digital assets. Violation Type: Operating without a license, misrepresentation of licensing status, unauthorized financial services activities, potential fraud. Penalty Amount: N/A (no monetary fine typically disclosed for these warnings, but the entity is ordered to cease operations and public is warned). Outcome: Public awareness, cessation of unauthorized activities (if complied), potential further legal action if non-compliant. Entity Targeted: Various financial services providers (e.g., International Business Companies, Payment Service Providers, Capital Market Services licensees) that either failed to comply with regulatory requirements or voluntarily surrendered their licenses due to inability to meet new standards (including AML/CFT). While not always explicitly "crypto-VASP" licenses, non-compliance in the broader financial sector can affect entities that provided related services. Violation Type: Non-compliance with regulatory requirements (including AML/CFT), failure to maintain minimum capital, failure to provide required documentation, voluntary surrender of license. Penalty Amount: N/A (the primary "penalty" is the loss of operating license). Outcome: Entity can no longer operate in Seychelles under that license, removal from public registers, potential liquidation. Outcome: Public awareness, cessation of unauthorized activities (if complied), potential further legal action if non-compliant. Outcome: Entity can no longer operate in Seychelles under that license, removal from public registers, potential liquidation.
general Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD): VASPs must conduct thorough CDD on all customers and beneficial owners, which includes screening against sanctions lists. EDD is required for higher-risk customers or transactions. Ongoing Monitoring: Continuous monitoring of customer relationships and transactions to identify any changes in risk profile or potential matches against updated sanctions lists. Beneficial Ownership Screening: Not just the direct customer, but all ultimate beneficial owners (UBOs) must be screened. Transaction Screening: Real-time or near real-time screening of all transactions, including wallet addresses (where feasible and relevant for identifying sanctioned entities or geographies), for any involvement of sanctioned individuals, entities, or jurisdictions. Identification of PEPs: Screening for Politically Exposed Persons (PEPs) is also required as a higher-risk category. Technology Implementation: VASPs are expected to employ robust technological solutions for automated screening and monitoring to ensure efficiency and accuracy. Section 24 (AML/CFT Obligations): This section broadly requires VASPs to comply with AML/CFT laws, regulations, and international best practices, which inherently includes sanctions compliance. Section 25 (Reporting of Suspicious Transactions): VASPs must report suspicious transactions, including those related to sanctions violations, to the FIU.
licensing Issuing Public Warnings: Against entities operating without a license or misrepresenting their licensing status in Seychelles, often encompassing investment schemes, forex, and implicitly, crypto-related activities. Cease and Desist Orders: Mandating unauthorized entities to stop operations. License Revocations/Suspensions: For non-compliance within the broader financial services sector, which can indirectly affect entities dealing with virtual assets. Enforcement Type: Public Warning & Cease and Desist (against Unlicensed Operation) Regulator Name: Financial Services Authority (FSA) Seychelles Date: Ongoing (multiple such notices issued frequently within the last 3 years). Example from 2023: On March 17, 2023, the FSA issued a Public Warning regarding "Vortex Investment," stating it is not licensed or regulated by the FSA to provide investment services. While not explicitly "crypto," these warnings often cover the broader spectrum of financial services where crypto can be involved. FSA Public Notices Page (where such warnings are published): https://www.fsaseychelles.sc/public-notices/
sanctions Virtual Asset and Service Providers Act, 2022 (VASPA 2022): This is the core legislation regulating VASPs in Seychelles, placing explicit obligations on them regarding AML/CFT and sanctions compliance. Legal Reference: Virtual Asset and Service Providers Act, 2022 Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 (AML/CFT Act 2020): This general AML/CFT legislation applies to all designated non-financial businesses and professions (DNFBPs) and financial institutions, including VASPs, requiring them to comply with international standards. Legal Reference: Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 United Nations (Anti-Terrorism) Act, 2001 (and related legislation): This Act provides the legal basis for implementing UN Security Council Resolutions, particularly those related to terrorism financing and proliferation. Seychelles has mechanisms to domestically implement all binding UN sanctions. Legal Reference: United Nations (Anti-Terrorism) Act, 2001 Financial Services Authority (FSA) and Financial Intelligence Unit (FIU) Guidance: The FSA, as the primary regulator for VASPs, issues guidelines and directives to ensure compliance. The FIU Seychelles also plays a crucial role in receiving and analyzing suspicious transaction reports. Legal Reference: FSA AML/CFT Framework
securities Seychelles is actively developing a regulatory framework for Virtual Asset Service Providers (VASPs), with the Ministry of Finance, National Planning and Trade having published a public consultation response in 2025 outlining the proposed framework Virtual Asset Service Providers Framework Industry Consultation Response As of the information available, no specific VASP or cryptocurrency exchange licenses have been issued under a dedicated digital asset framework, as the framework is still in the consultation and development phase Virtual Asset Service Providers Framework Industry Consultation Response The practical reality is that businesses must currently operate under general business licensing requirements while awaiting the finalization of the dedicated VASP framework Home - Seychelles Licensing Authority The Ministry of Finance, National Planning and Trade is the lead government body developing the Virtual Asset Service Providers framework, having published a formal Response to Public Consultation document Virtual Asset Service Providers Framework Industry Consultation Response The Seychelles Licensing Authority (SLA) is the main regulatory agency responsible for issuing business licenses, operating since 1984, with its official website at https://www.sla.gov.sc/ Home - Seychelles Licensing Authority The Licensing Act governs the business licensing process, and under its provisions, the SLA must deal with a license application within 14 days Business License Application - Seychelles Licensing Authority The Securities Act, 2007 is the primary legislation for securities regulation in Seychelles, and the Cabinet of Ministers has approved key reforms to this Act to enhance regulation and compliance in response to market developments and emerging risks Cabinet Business -Thursday 12th September 2024 - News - State House Seychelles | Office of the President The National Payment System (Licensing and Authorization) Regulations 2014 have been amended to introduce new criteria for licensing and authorization, including requirements that applications align with national interests and adhere to both the NPSR and Securities Act Cabinet Business -Thursday 12th September 2024 - News - State House Seychelles | Office of the President
stablecoin Financial Services Authority (Virtual Assets) Act, 2023 (VA Act 2023): This is the cornerstone legislation. It provides for the licensing, regulation, and supervision of VASPs and activities related to virtual assets. Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 (AML/CFT Act 2020): This Act and its associated regulations apply to VASPs as designated non-financial businesses and professions (DNFBPs), imposing obligations for customer due diligence, suspicious transaction reporting, and record-keeping. Financial Services Authority (FSA) Website: The FSA publishes guidelines, application forms, and further regulations related to the VA Act. Virtual Asset (VA): Defined in the VA Act 2023 (Section 2) as "a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes but does not include digital representation of fiat currencies, securities and other financial assets that are already covered under other existing laws." Stablecoins generally fall under this broad definition, as they are digital representations of value intended for trading or payment. Financial Service Token: The VA Act also defines this as "a virtual asset that is transferable and divisible and (a) confers rights similar to those conferred by derivatives or other financial instruments or (b) is used to gain access to a financial service." If a stablecoin represents a share in a fund, a bond, or another regulated financial instrument, it could be classified as a Financial Service Token and potentially fall under existing securities laws in addition to the VA Act. Payment Token: While not explicitly defined as a distinct category for stablecoins, their primary function as a medium of exchange aligns with the concept of a payment token. However, the regulatory focus is more on the activities surrounding virtual assets rather than the specific token type. Prudential Requirements: Licensed VASPs are subject to various prudential requirements, including capital adequacy, robust risk management frameworks, internal controls, and segregation of client funds. The FSA has the power to impose specific conditions on licenses.
status The source does not mention any financial regulator, central bank, or securities authority. It only references the Immigration and Civil Status Seychelles department, which handles border control, passports, and permits. Immigration and Civil Status Seychelles No primary legislation, act, regulation, or official instrument number related to crypto or virtual assets appears anywhere in the source. Immigration and Civil Status Seychelles The source references the "Central Bank of Seychelles Banking Details for Foreign Correspondent Banks" as payment information for immigration services, but provides no regulatory details regarding crypto. Immigration and Civil Status Seychelles No information is provided on Seychelles' FATF, Moneyval, or any international standing regarding financial crime or AML/CFT compliance. Immigration and Civil Status Seychelles The source contains no licensing framework for crypto exchanges, virtual asset service providers, or any Web3-related business activities. Immigration and Civil Status Seychelles The only permits discussed are Gainful Occupation Permits (GOP), Visitors Permits, Residence Permits, and Student Permits — none of which relate to crypto business licensing. Immigration and Civil Status Seychelles No capital requirements, application processes, or timelines for any crypto-related license are provided in the source. Immigration and Civil Status Seychelles Zero entities have been licensed for crypto activities according to this source, as no such licensing scheme is mentioned at all. Immigration and Civil Status Seychelles
tax Individuals and Corporations (excluding real estate): Seychelles generally does not impose a capital gains tax on the sale of assets, including virtual assets, for individuals or most corporate entities (such as International Business Companies or IBCs) unless the gain arises from the sale of immovable property situated in Seychelles. Therefore, profits derived from the appreciation and sale of cryptocurrencies are typically not subject to capital gains tax in Seychelles. Passive Investment: If an individual buys and holds virtual assets as a passive investment, and profits are realized through their sale (as capital gains), these are generally not subject to income tax due to the absence of a general capital gains tax. Professional Trading/Mining/Business Activity: If an individual engages in crypto activities (e.g., active day trading, extensive mining operations, providing crypto-related services) in a manner that constitutes a regular business or employment, the profits derived from these activities could be classified as business income or employment income. This income would then be subject to the standard personal income tax rates (Progressive tax rates apply to employment income; business income is subject to Business Tax). However, the definition of "business" for crypto activities by individuals can be nuanced. International Business Companies (IBCs): Historically, IBCs were exempt from all taxes on income derived from outside Seychelles. However, due to international tax reforms (e.g., BEPS and EU requirements), this has changed. As of January 1, 2019, IBCs are now subject to the Business Tax Act. If an IBC conducts business activities (including crypto-related activities) globally, its income is generally subject to a 1.5% business tax. Important Nuance: There are still provisions for 0% tax for "international business" activities if certain conditions are met (e.g., no business conducted in Seychelles, no Seychelles-sourced income, no ownership of immovable property in Seychelles). A Virtual Asset Service Provider (VASP) operating an exchange or providing other crypto services primarily to non-Seychelles residents might aim for this 0% rate, but careful structuring and adherence to substance requirements are critical. Domestic Companies (Companies incorporated under the Companies Act 2017, conducting business in Seychelles): These companies are subject to the standard corporate business tax rates, which can range from 0% (for the first SCR 1,000,000 of taxable income for local businesses) up to 33% for larger profits, depending on the business's taxable income and type. If a domestic company is engaged in crypto-related services within Seychelles, its profits would be taxed accordingly.
travel rule Seychelles does not have a specific cryptocurrency or digital asset travel-rule regulatory framework as of 2025–2026; the only travel-related digital requirements are the Travel Authorisation (TA) and Maritime Travel Authorisation (MTA) systems operated by the Department of Immigration and Civil Status, which are immigration border-control measures, not financial travel-rule requirements under FATF Recommendation 16 Seychelles Extends Travel Authorisation Requirements to Travellers entering by Sea - Tourism Seychelles No named Seychelles regulator (such as the Financial Services Authority or Central Bank) has issued any published licensing, registration, or compliance obligations specifically for virtual asset service providers (VASPs) regarding the travel rule, and no VASP has been reported as licensed under any crypto-specific regime Travelling to Seychelles - Ministry of Foreign Affairs and the Diaspora The only digital-application requirement in force is the Travel Authorisation (TA) for air travellers and the Maritime Travel Authorisation (MTA) for sea arrivals, which are immigration procedures and unrelated to cryptocurrency transfer rules Visitors Permit For any business, the only verifiable travel-related digital obligation is completing the TA/MTA form online before arrival, paying the EUR 10.90 standard processing fee, and complying with immigration entry criteria—none of which address crypto-asset transfer information sharing Seychelles Extends Travel Authorisation Requirements to Travellers entering by Sea - Tourism Seychelles The Seychelles Department of Immigration and Civil Status is the named authority responsible for travel authorisation requirements, including the digital Travel Authorisation (TA) for air passengers and the Maritime Travel Authorisation (MTA) for sea passengers; its website is https://www.ics.gov.sc Visitors Permit The Ministry of Foreign Affairs and the Diaspora provides official travel guidance and confirms that no visa is required for Seychelles, but all travellers must apply for a Travel Authorisation (TA); its website is https://mfa.gov.sc Travelling to Seychelles - Ministry of Foreign Affairs and the Diaspora Tourism Seychelles, operating under the Tourism Department, announced the extension of travel authorisation requirements to sea arrivals, effective November 4, 2024, and mandatory from December 1, 2024; its website is https://tourism.gov.sc Seychelles Extends Travel Authorisation Requirements to Travellers entering by Sea - Tourism Seychelles No primary law, act, statute, or regulation specifically addressing cryptocurrency travel-rule requirements (such as a Virtual Asset Service Provider Act or an Anti-Money Laundering amendment covering crypto transfers) is cited in any of the provided official sources Travelling to Seychelles - Ministry of Foreign Affairs and the Diaspora

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile