Seychelles Crypto License (VASP)

What is Seychelles VASP License?

The Virtual Asset Service Providers Act 2024 came into force on September 1, 2024, establishing mandatory licensing for all virtual asset activities in Seychelles. The Financial Services Authority (FSA) issues VASP licenses and supervises compliance with AML/CFT requirements aligned with FATF Recommendation 15.

What Changed in September 2024

Virtual Assets Definition

Virtual assets are defined as digital representations of value that can be traded or transferred for payment or investment purposes, including:

• Cryptocurrencies used as medium of exchange or store of value
• Tokens representing debt or equity
• Assets or rights associated with virtual assets
• Blockchain-based access to applications or services

The following activities cannot be licensed in Seychelles

• Mining facility operations — due to high energy consumption and environmental concerns
• Mixer or tumbler services — obscure transaction trails and pose high money laundering risk
• Use of restricted terms without license — cannot use “blockchain,” “cryptocurrency,” “exchange,” “ICO,” “NFT,” “virtual,” “Web3” in business name unless licensed

Who Needs a Seychelles VASP License?

A VASP license is mandatory for any legal entity conducting virtual asset services in or from Seychelles. The licensing requirement applies regardless of where your clients are located — if your company is incorporated in Seychelles or operates from Seychelles territory, you must be licensed.

Only legal entities can apply for VASP licenses — individuals cannot obtain licenses regardless of business volume. You must first incorporate a Seychelles company (domestic or IBC) before applying.

Activities Requiring a License

You need a VASP license if your business involves any of these activities:

• Wallet and custody services — holding client private keys, providing custodial or non-custodial wallets, safekeeping virtual assets
• Exchange and trading — converting crypto to fiat or other crypto, operating trading platforms, providing liquidity
• Brokerage services — acting as intermediary, facilitating OTC trades, connecting buyers and sellers
• Investment services — managing crypto portfolios, providing investment advice, operating crypto funds
• Token issuance — launching ICOs or NFTs to the public (requires FSA registration, not full license)

Who Does NOT Need a License

4 Types of Seychelles VASP Licenses

The FSA issues four distinct license types based on the virtual asset services you provide. Each type has different capital requirements, annual fees, and permitted activities. You can apply for multiple license types simultaneously if your business model requires it.

Type A: Virtual Asset Wallet Providers

Type A covers custodial and non-custodial wallet services, private key storage, and cold storage solutions. Examples include custody platforms like BitGo, consumer wallets like Trust Wallet, and institutional storage providers.

Wallet providers must maintain 100% reserve funds matching client virtual assets under custody, with mandatory segregation and quarterly audits to verify holdings.

Type B: Virtual Asset Exchange

Type B permits centralized exchanges with spot trading, crypto-to-fiat conversion, and order matching. Major platforms like HTX, KuCoin, and MEXC operate from Seychelles under this license.

Exchanges face the highest capital requirement (USD 100,000) due to client fund custody and elevated AML/CFT risk. All exchanges must implement Travel Rule compliance for transfers ≥ SCR 50,000 (~USD 3,850).

Type C: Virtual Asset Broking

Type C covers OTC desks, P2P platforms, and intermediary services connecting buyers with sellers without operating an exchange. Examples include institutional OTC desks and LocalBitcoins-style platforms.

Lower capital requirement (USD 50,000) reflects shorter fund holding periods, but full AML/CFT compliance and reporting obligations remain identical to exchanges.

Type D: Virtual Asset Investment Providers

Type D authorizes portfolio management, investment advisory, and crypto fund operations. Examples include hedge funds, robo-advisors, and wealth management platforms.

Lowest capital requirement (USD 25,000) since advisors don’t custody assets. If combining advisory with custody, you need both Type D and Type A licenses (combined USD 100,000 minimum capital).

Multiple License Types

If your business model requires multiple activities, you can apply for multiple license types simultaneously. The FSA evaluates each type separately but processes them together. Annual fees are cumulative.

Common combinations:

• Type A + Type B: Exchange with integrated wallet services (most common for full-service platforms)
• Type B + Type C: Exchange offering both platform trading and OTC desk services
• Type A + Type D: Custody provider offering investment advisory on held assets
• Type C + Type D: Broker providing investment recommendations alongside execution services

Seychelles VASP License Requirements

The FSA evaluates applications based on corporate structure, financial capacity, governance, and compliance readiness. All requirements must be met before license issuance — the FSA does not issue conditional licenses.

Company & Personnel Requirements

Financial Requirements

Documentation Requirements for Application

Step-by-Step Seychelles VASP Registration Process

The complete licensing process takes 4-8 months from company formation to license issuance. Each stage must be completed sequentially, with FSA review being the longest phase. Working with AdamSmith accelerates preparation and reduces back-and-forth with the FSA.

Taxation in Seychelles

Seychelles operates a tiered corporate tax system with no capital gains tax. VASP companies can benefit from reduced rates if meeting economic substance requirements.

Corporate Tax Rates

Seychelles offers two tax systems — you choose which one to use:

Standard progressive tax: 15% on first SCR 1M (~USD 76k) net profit, then 25% on remainder. Tax calculated on net profit (revenue minus expenses).

Beneficial tax regime: Flat 1.5% on assessable income (gross receipts from Seychelles sources). Available for companies with economic substance — physical office, resident director, local staff.

VASP licensees automatically qualify for the 1.5% beneficial rate since FSA substance requirements match tax substance requirements. Tax applies only to Seychelles-source income under territorial taxation principle. Simply apply to Seychelles Revenue Commission.

Other Taxes

• Capital gains tax: 0% — No capital gains tax on crypto or other assets
• Withholding tax: 15% on dividends, interest, and royalties paid to non-residents
• VAT: Not applicable to financial services including crypto exchange and trading

Why Choose Seychelles for Crypto License?

1. Established Jurisdiction with Major Exchanges

Several major crypto exchanges including HTX (formerly Huobi), KuCoin, BitMEX, and MEXC are incorporated in Seychelles. The jurisdiction has been used by crypto businesses since before the VASP Act 2024 came into force, providing real-world operational history.

2. Beneficial Tax Rate (1.5% on Seychelles-Source Income)

Seychelles offers 1.5% beneficial tax rate on assessable income (gross receipts from Seychelles sources) for VASP licensees meeting substance requirements. This rate is automatically available — no special application needed beyond standard licensing.

Tax applies only to Seychelles-source income under territorial taxation principle. Income sourced outside Seychelles is not taxed, creating tax planning opportunities depending on business structure.

3. Accessible Capital Requirements (USD 25k-100k)

Seychelles minimum capital requirements are lower than many established crypto jurisdictions:

• Type D (Investment): USD 25,000
• Type C (Broking): USD 50,000
• Type A (Wallet): USD 75,000
• Type B (Exchange): USD 100,000

No nationality restrictions for directors or shareholders. Minimum 1 resident director required (183+ days per year in Seychelles). Capital must be held in bank meeting Basel II standards (local or international by FSA agreement).

Seychelles vs. Other Crypto Jurisdictions

Direct comparison of Seychelles VASP license with other established offshore crypto jurisdictions. All data reflects 2025 requirements.

ICO and NFT Registration in Seychelles

Seychelles VASP Act 2024 requires registration of ICO and NFT offerings promoted in or from Seychelles. Separate from VASP licensing — applies specifically to token issuance.

What Requires Registration

• Tokens tradable on public blockchain or crypto exchanges
• NFTs with external value or tradability
• Any token with real-world applicability outside issuer’s platform

What Does NOT Require Registration

• Closed-loop in-game currencies (cannot be traded outside platform)
• Platform-specific points with no external value