This law is not just another regulatory act – it is a powerful tool for transforming Seychelles into a regulated financial hub. The VASP license opens the door for companies to international markets, increases the trust of counterparties and banks, and also guarantees compliance with high standards of compliance, cybersecurity and economic presence.
Manimama law firm offers full support for the licensing process in Seychelles — from preliminary preparation of a package of documents to final inclusion in the official register of licensed VASPs. Thanks to our experience and deep understanding of local regulatory requirements, we help clients avoid common mistakes, speed up the process and minimize the risks of refusal.
VASP Law in Seychelles: What You Need to Know
On September 1, 2024, the Virtual Asset Service Providers Act, 2024, came into force in Seychelles, which for the first time introduced full-fledged regulation of activities in the crypto industry. The document clearly defines which types of businesses require licensing, who can obtain such a license, and what requirements must be met for this.
According to the Law, the following are subject to regulation:
- Virtual wallet providers (custodial and non-custodial services),
- Cryptocurrency exchangers (including exchanges and exchange services),
- Brokers (intermediary and advisory crypto services),
- Investment companies working with virtual assets.
Compliance is controlled by the Seychelles Financial Services Authority (FSA), which both issues licenses and supervises licensees. The law explicitly prohibits activities without a license, providing for severe sanctions, up to and including criminal liability.
Key innovations include mandatory requirements for economic presence (substance), fixed fees, detailed rules on compliance, cybersecurity, and transparency of corporate structure. From now on, using terms such as “crypto exchange,” “ICO,” “DeFi,” or “Web3” without an appropriate license is considered an offense.
How the licensing procedure works: a step-by-step overview
The VASP (Virtual Asset Service Provider) licensing procedure was officially introduced on April 28, 2025, with the publication of Application Guidelines, a special guide from the Financial Services Authority (FSA) of Seychelles. The document details all the steps a company must go through to obtain permission to legally operate in the field of virtual assets in accordance with the Virtual Asset Service Providers Act, 2024.
The licensing process involves phased interaction with the regulator and requires the applicant not only to prepare high-quality documents, but also to be ready to prove its financial, technical and organizational capacity to operate in the field of virtual assets.
To submit an application, a company must prepare a significant package of documents, including constituent documents, questionnaires of directors, a compliance officer, a cybersecurity specialist, financial forecasts, confirmation of sources of funds, agreements with technology solution providers, insurance policies, policies on AML/CFT, cybersecurity, complaint handling, internal control, etc.
All documents are submitted electronically via the FSA portal. After submission, the FSA conducts an initial check of the completeness of the package and, if appropriate, begins an in-depth analysis. The regulator has the right to request additional documents, conduct interviews or even request a demonstration of the system. However, it is worth remembering that if the application is found to be incomplete, it will be automatically rejected and the fee paid will not be refunded.
If a company already has another license from the FSA, it can refer to previously submitted documents, but only if they are up to date. Otherwise, it will be necessary to submit a complete new package.
The duration of the application review varies significantly – from several months to two years. It all depends on the complexity of the corporate structure, the quality of preparation and the openness of the applicant to interaction. After a positive decision, the licensee is officially included in the public VASP register on the FSA website, which increases the level of trust from banks, exchanges and partners.
This process is not just a bureaucratic formality. It is a kind of “reliability check” that opens up access to the global market for the company legally and transparently. And this is where experienced legal support becomes critically important – to avoid rejection, minimize delays and costs.
The company must have at least two directors who are natural persons, one of whom must be a resident of Seychelles. It is also mandatory to establish a physical office in the country, have staff, hold board meetings and management meetings directly in the jurisdiction. All of this is included in the so-called requirements for economic presence – “substance”, and this is one of the most checked points when assessing the application.
The regulator pays attention to the financial capacity of the company: it must have sufficient capital, appropriate insurance policies, technical infrastructure for data processing, as well as cybersecurity and compliance policies that fully comply with local legislation. The competencies of key individuals – directors, compliance officer, head of IT security – are checked separately. All of them must meet the “fit and proper” criteria, and their questionnaires and documents must undergo a detailed analysis by the FSA.
It is also important to understand that despite the openness of the jurisdiction to crypto business, some activities in the Seychelles are strictly prohibited. In particular, we are talking about the activities of crypto mixers, tumblers and mining farms. It is forbidden to even intend to carry out such activities. In addition, a company that does not have a license is not allowed to use words like “exchange”, “ICO”, “NFT”, “Web3” or “DeFi” in its name or marketing materials – this is considered an offense and may result in fines or even criminal liability.
To apply, a company must collect an extensive package of documents. It includes statutory documents, proof of address, contracts with technical providers, internal policies, a business plan, audit reports, questionnaires and documents for all key persons, criminal records, confirmation of sources of funds and origin of capital. All files are submitted digitally through the FSA online portal, and each file is assessed from a legal, technical and financial point of view.
The compliance officer is a central figure in the structure of the future licensee. His experience, education, qualifications and willingness to ensure constant control over compliance with the requirements are critical for a positive decision on the license. After the license is issued, the company becomes a subject of financial monitoring and is subject to the requirements of the AML/CFT and cybersecurity laws.
The procedure is complex, detailed and requires strategic preparation. But successfully completing this path gives the company not just a license, but full access to the global digital asset market – with official status, legal protection and trust from counterparties, banks and platforms.
Seychelles is your entry point into legal crypto business
Obtaining a VASP license in Seychelles is not just a formality. It is a strategic decision that opens up legal access to the global digital asset market for a company, creates trust with banking and payment institutions, reduces reputational risks and allows you to operate in a clear legal framework.
The Seychelles regulatory model simultaneously provides flexibility for innovation and rigor in terms of transparency, compliance and investor protection. This environment is ideal for both DeFi startups and existing exchanges, brokers or custodians.
Manimama law firm has practical experience in supporting VASP projects and a deep understanding of local regulation. We undertake not only documentary work, but also strategic design of the structure, selection of directors, preparation of policies and support in relations with the FSA.
The world of crypto assets is rapidly moving towards maturity. If you want to play in this field, play legally, professionally and with a strategic advantage.
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Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
