DISCLAIMER: The term "cryptolicense" in this text refers to a virtual asset service provider (VASP) license. The use of the term "cryptolicense" is intended solely to simplify the perception of the text by customers and visitors to the website.

Seychelles has emerged as a favorable jurisdiction for cryptolicensing, offering an attractive regulatory framework. The government, recognizing the potential of blockchain technology and cryptocurrencies, has implemented a flexible licensing regime aimed at fostering innovation while ensuring compliance with international standards.

One of the key advantages of obtaining a cryptolicense in Seychelles is its business-friendly tax regime, which includes no capital gains tax and low corporate taxes. This financial incentive, combined with a fast-growing financial services infrastructure, has led many international crypto firms to set up operations in the country. Seychelles offers a secure and efficient regulatory environment, making it a competitive choice for global crypto operations.

Seychelles has developed an extensive regulatory framework for the regulation of VASPs, which has become operational as of late. The legislation sets provisions for VASPs, clearly defining their obligations and responsibilities in relation to virtual asset-related activities in or outside the country.

According to the enacted law, companies seeking to operate in the cryptocurrency space, for instance exchanges, wallet providers can apply for a license through the Financial Services Authority (FSA), which oversees the sector. The FSA is also responsible for registering ICO and NFT promoters.

Seychelles has established an extensive regulatory framework for the VASPs

Key Numbers about Cryptolicense in Seychelles

minimum

2 directors for a crypto company

1.5%

business tax rate

SCR 75,000 (~ $5,506)

application fee for a license

0%

withholding tax (WHT) rate

from $25,000 to $100,000

initial paid-up capital for a holder of cryptolicense

from SCR 75,000 to SCR 375,000 (~ from $5,506 to $24,719)

annual license fees

Legal Opinion about Cryptolicense in Seychelles

Ganna Voievodina

Manimama

CEO

"Overall, Seychelles represents a viable option for cryptocurrency ventures seeking a supportive regulatory environment coupled with significant financial incentives. If you are interested, contact us today to get your Seychelles cryptolicense".

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Types of Activities with a License in Seychelles

Virtual asset wallet providers

the holders of cryptolicense are offering custodial services for virtual assets, including the management, transfer, and safekeeping of digital wallets on behalf of customers.

Virtual asset exchange providers

such cryptolicensees provide services facilitating the exchange between virtual assets, NFTs, ICOs and fiat currencies for and on behalf of clients OR one or more forms of virtual assets, NFTs, ICOs and fiat currencies for and on behalf of clients; in addition, transfer, safekeeping and management of these assets.

Virtual asset broking providers

cryptolicense holders are authorized to the exchange or safekeeping of virtual assets, NFTs, ICOs and fiat currencies through a virtual assets wallet provider and virtual assets exchange for and behalf of customers.

Virtual asset investment providers

cryptolicensees have the right to offer investment and fund management portfolios of virtual assets, NFTs, ICOs and deliver investment advice for these assets.

Benefits of Obtaining a Cryptolicense in Seychelles

Tax efficiency:

Companies registered in Seychelles are exempt from corporate tax on income derived from outside the country, making it a cost-effective jurisdiction for international crypto operations.
Seychelles does not impose withholding taxes on dividends, interest, or royalties, making it appealing for businesses with international stakeholders.

Ease of company formation:

The process for obtaining a cryptolicense in Seychelles is relatively simple and faster compared to other jurisdictions.
Seychelles offers a business-friendly environment with minimal bureaucratic red tape, allowing companies to focus on their core activities instead of getting bogged down by regulatory hurdles.

Strong legal framework:

Seychelles has developed a robust legal framework for cryptocurrency and blockchain-related businesses. This regulatory clarity attracts entrepreneurs seeking a stable and predictable business environment.
Clear guidelines on compliance, anti-money laundering (AML), and Know Your Customer (KYC) procedures provide legal assurance, allowing businesses to operate without the uncertainty found in some other jurisdictions.

Enhanced investment opportunities:

The Seychelles cryptolicense increases the credibility of businesses in the eyes of international investors. The favorable legal and tax framework, combined with the jurisdiction's strong reputation, attracts venture capital and private equity firms looking to invest in crypto startups.
Seychelles has partnerships with various international banking institutions that offer crypto-friendly services, making it easier for businesses to manage their finances and access funding.

Flexible business structures:

Seychelles allows for flexible business structures, making it easier for crypto companies to operate efficiently. Businesses can register as International Business Companies (IBCs), which are exempt from many local regulations and taxes, while still adhering to the country’s crypto regulations.
Additionally, Seychelles' legal framework allows for easy formation and management of holding companies, making it a favorable jurisdiction for businesses looking to establish multiple entities under one umbrella.

Comprehensive regulatory framework:

Seychelles has developed a clear and comprehensive regulatory framework for crypto businesses. The FSA issues crypto licenses that cover a broad range of activities, including exchanges, wallet services, etc. This regulatory clarity provides businesses with confidence that they can operate within well-defined legal boundaries.
This framework also includes robust AML and KYC policies, ensuring that businesses are compliant with international financial security standards. This not only helps companies avoid regulatory issues but also enhances their reputation with clients, investors, and other stakeholders.

Our Services

Popular package

Stage 1

Incorporation stage

Company formation in Seychelles
Set of translated and apostilled corporate documents
Address of registration for 1 year
Appointment and employment of a local director
Opening a corporate bank account and transfering the share capital
Detailed company structure description
Preparation of AML/KYC/KYT compliance documentation

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Stage 2

Pre-licensing stage

Drafting business plan, financial projections and forecasts
Technical solutions overview
Developing internal control procedures
Search, integration, direct employment agreement for exclusive, experienced Compliance officer
Office space arrangement and signing of the lease agreement
Establishing relationships with key partners (liquidity providers, KYC/KYT solutions, custody solutions, etc.).

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Stage 3

Licensing stage

Preparing and submitting an application and other documents for a cryptolicense
Handling the communication with the Financial Services Authority (FSA)
Obtaining a cryptolicense
Opening a corporate account for C2B crypto transactions on EMI in EU
Integrating of the crypto-accounting
Opening a corporate account for C2B crypto transactions on European crypto exchange

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Our Experts in this Area

Ganna Voievodina

CEO, co-founder

Yevheniia Ukolova

BizDev-lawyer

Step by Step Description

Step 1. Initial setup
- Initial project assessment
- Gathering KYC information
- Preparation and filing of the package of documents
Step 2. Company registration
- Appointing a local registered agent
- Choosing a company name
- Appointing directors and shareholders
- Renting of an office space in Seychelles
- Hiring the necessary personnel
- Opening a banking account for contribution of the shared capital
- Entry of company data into the Commercial Register
Step 3. Submitting for a cryptolicense to the regulator
- Preparation of all documents (questionnaire forms, applications, policies, manuals, business plan and so on) to align with the client company's cryptocurrency activities
- Recruitment of a fit & proper Compliance officer
- Applying for a cryptolicense to the FSA
- Payment of the license application fee

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Understanding of the Legal Requirements in Seychelles

As of September 1, 2024, Seychelles has introduced a mandatory licensing regime for those who wish to engage in activities related to virtual assets

The VASP Act, 2024 establishes a general framework for the regulation of relevant entities in Seychelles and officially entered into force on September 1, 2024. The Law is currently published in the official gazette of the Republic of Seychelles.

Please also note that if, as of September 1, 2024, a person already provides services with virtual assets, it must submit a completed application for a license or registration permit (for the ICO or NFT) by December 31, 2024. Until such an application is approved or rejected, it may continue its business activities. However, entities may not consider themselves to have obtained a license solely on the basis of submitting a completed application.

The law also provides that no entity shall be permitted in or from Seychelles to operate:

mining facilities (a place, facility or equipment (software or hardware) used to conduct business and to create cryptocurrency on a blockchain by computing and cryptographic means, with the intention of validating transactions and adding them to a public blockchain ledger in exchange for a benefit); and
a cryptocurrency “tumbler” or “mixer” (tools or services that mix different virtual assets streams that can be potentially traced, concealing the origin of a particular virtual assets' funds).

Such activities are not subject to licensing and are strictly prohibited in any case. Violations of this prohibition are subject to fines and imprisonment.

Requirements for Obtaining a Cryptolicense in Seychelles

To get the Seychelles cryptolicense it is mandatory to have at least 1 resident director, a fully staffed office in Seychelles, comply with the share capital, which can vary from $25,000 to $100,000 depending on the type of activity

To obtain a Seychelles cryptolicense, an applicant must meet the following criteria (without limiting the foregoing):

be considered an eligible applicant - meaning a license can be issued exclusively to such entities as companies incorporated or registered under the Companies Law of 1972 (this does not apply to foreign companies) and international business companies (IBCs) established, continued or transformed in accordance with the International Business Companies Act of 2016
comply with the requirements for the appointment of directors to the Board of Directors - it must consist of individuals only and have at least 2 directors
have at least 1 resident director on the Board of Directors (the resident is an individual who is a) domiciled in Seychelles; and b) present in the country for a period or periods of 183 days or more in the aggregate during any 12-month period of a calendar year)
appoint an auditor within 30 days of being licensed under the VASP Act, who is acceptable to the FSA
appoint a Compliance officer who will be responsible for the maintenance of adequate systems and controls
make all reasonable efforts to ensure that key personnel, including shareholders, ultimate beneficial owners, directors, compliance officers and other principal officers, are fit for their positions
have a fully staffed office in Seychelles
comply with the share capital (initial paid-up capital varies from $25,000 to $100,000 depending on the type of activity), solvency and insurance requirements
the licensed VASPs must comply with the provisions of the AML/CFT Act and the AML/CFT Regulations
ensure that all records and documentation required to be kept by the licensee in accordance with the VASP Law and regulations are available and accessible at the licensee's office
undertake complaint handling in Seychelles
annually holding at least 2 meetings of its board of directors in Seychelles
annually holding at least 4 management meetings in Seychelles
handle complaints in the Seychelles
have its accounts audited annually in accordance to the International Financial Reporting Standards
implement and maintain effective cybersecurity measures and prepare a cybersecurity policy
pay annual license fee and submissions

Taxes in Seychelles

The holder of cryptolicense can pay a business tax of 1.5%

In general, business tax in Seychelles is levied on taxable income from business activities. The Business Tax Act embraces three basic regimes.

Presumptive tax
Business tax
Withholding tax

The basic business tax rate for companies are 15% on the first SCR 1 million (~ $73,435) and ‎‎25% above SCR 1 million.‎‎

But note that according to the Seychelles legislation a licensed VASP can benefit from a business tax rate of 1.5% applicable on the assessable (gross) and 0% of withholding tax on dividends or interest payable.

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Frequently Asked Questions

What is a cryptolicense in Seychelles?

A cryptolicense in Seychelles is a legal authorization for companies involved in cryptocurrency-related activities, for example exchanges, wallet services, to operate under the regulatory framework of the Seychelles Financial Services Authority (FSA).
Is a cryptolicense mandatory to operate a cryptocurrency business in Seychelles?

Yes, companies engaging in cryptocurrency-related services in Seychelles must obtain a cryptolicense to ensure compliance with local regulations.
How to obtain a cryptocurrency license in Seychelles?

To be able successfully acquire a cryptocurrency license in Seychelles, an applicant must fulfill all the requirements set by the FSA of Seychelles.
What types of cryptocurrency businesses require a cryptolicense in Seychelles?

Virtual asset wallet providers, Virtual asset exchange providers, Virtual asset broking providers, Virtual asset investment providers.
Which authority regulates cryptocurrency businesses in Seychelles?

The Seychelles Financial Services Authority (FSA) is responsible for regulating cryptocurrency-related activities.
What is the minimum capital requirement to obtain a cryptolicense in Seychelles?

The minimum initial paid-up capital requirement varies depending on the type of business, but it is in the range of $ 25,000 to $ 100,000.
Do I need to establish a physical office in Seychelles to apply for a crypto-license?

Yes, having a local presence in Seychelles is required for the application.
What documentation is required to apply for a cryptolicense in Seychelles?

Key documents include a business plan, company incorporation documents, financial statements, compliance manuals and policies, details of the management team etc.
What are the benefits of obtaining a crypto-license in Seychelles?

Seychelles offers a favorable regulatory environment, low taxation, and access to global financial markets, making it an attractive jurisdiction for cryptocurrency businesses.
Is there a specific legal framework governing cryptocurrencies in Seychelles?

Yes. The VASP Act, 2024 establishes a general framework for the regulation of relevant entities in Seychelles and officially entered into force on September 1, 2024.
Is there any public registry where I can verify the status of a crypto-license in Seychelles?

Yes, the Seychelles FSA maintains a public register where licensed entities, including cryptocurrency businesses, can be verified.