Seychelles

Retail_Trading_Status

Allowed-Regulated Unknown

Analysis ID: #380
Version: Latest
Created: 2025-06-26 12:49
Run: 6695f965...
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Workflow Stage: Live

Executive Summary

Seychelles permits retail cryptocurrency trading but now operates within a regulated environment primarily through the Virtual Asset Service Providers Act, 2024 (VASP Act), effective September 1, 2024. The VASP Act mandates licensing for Virtual Asset Service Providers (VASPs) by the Financial Services Authority (FSA) Seychelles, addressing AML/CFT risks. Individuals can trade and hold crypto, but providing virtual asset services requires a license available only to corporate entities. The FSA has issued warnings about dealing with unregistered VASPs, emphasizing financial loss risks.

Detailed Explanation

As of 2025-06-26, Seychelles has transitioned to a regulated environment for cryptocurrencies, where individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies. This is now governed primarily by the Virtual Asset Service Providers Act, 2024 (VASP Act), which came into force on September 1, 2024. The VASP Act establishes a licensing regime for Virtual Asset Service Providers (VASPs) and aims to address risks, particularly concerning Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), aligning with Financial Action Task Force (FATF) recommendations.

Historically, Seychelles had a less developed legal framework for cryptocurrencies, with ICOs not being specifically regulated, and cryptocurrencies were not recognized as legal tender by the Central Bank of Seychelles. Individuals trading in them did so at their own risk. However, concerns over the misuse of virtual assets for illicit activities prompted a more formal regulatory approach.

The Financial Services Authority (FSA) Seychelles is designated as the regulatory body responsible for licensing, supervision, and enforcement under the VASP Act. The Act mandates that entities providing virtual asset services in or from Seychelles must be licensed. This includes exchanges, wallet providers, and other crypto-related businesses. These licensed entities are subject to AML/CFT obligations, including implementing KYC/AML procedures, such as customer due diligence.

While the VASP Act primarily focuses on regulating service providers, it directly impacts retail traders by aiming to create a safer and more transparent environment. The FSA has issued warnings to consumers about dealing with unregistered or unauthorized VASP businesses, emphasizing the risks of financial loss. Furthermore, the Act prohibits certain virtual asset-related activities, such as the operation of mining facilities and mixer/tumbler services. Only domestic companies and International Business Companies (IBCs) are eligible to apply for a VASP license; individuals are expressly ineligible. Individuals can trade and hold crypto, but providing virtual asset services requires a license available only to corporate entities. VASPs must have a physical presence in Seychelles, including an office and qualified personnel, and appoint at least one Seychelles resident as a director. Specific capital requirements depend on the type of virtual asset service offered.

The government of Seychelles has adopted a positive stance toward virtual assets by enacting the Seychelles VASP Act which became effective September 1, 2024, establishing a clear legal framework for licensing and regulating VASPs, including exchanges, custodians, and token issuers. This regulatory shift is aimed at ensuring AML/CFT compliance and consumer protection, which indirectly affects retail investors by setting standards for the platforms they use. Cryptocurrency is not recognised as legal tender by Seychelles' Central Bank. Any individuals who trade in it are doing so at their own risk.

Summary Points

Okay, here's the regulatory analysis report on Retail_Trading_Status in Seychelles, converted into a clear, well-structured bullet point format:

Retail_Trading_Status in Seychelles: Regulatory Analysis (June 26, 2025)

I. Overview

Status: Allowed-Regulated. Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies.
Key Change: Shift from a relatively unregulated environment to a regulated one with the enactment of the Virtual Asset Service Providers Act, 2024 (VASP Act).

II. Key Regulatory Bodies and Their Roles

Financial Services Authority (FSA) Seychelles:
- Designated as the regulatory body responsible for licensing, supervision, and enforcement under the VASP Act.
- Ensures compliance with international standards, including Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligations, in line with Financial Action Task Force (FATF) recommendations.
- Issues warnings to consumers about dealing with unregistered or unauthorized VASPs.
Central Bank of Seychelles:
- Cryptocurrency is not recognized as legal tender.

III. Important Legislation and Regulations

Virtual Asset Service Providers Act, 2024 (VASP Act):
- Enacted on August 30, 2024, and came into force on September 1, 2024.
- Establishes a licensing regime for Virtual Asset Service Providers (VASPs) operating in or from Seychelles.
- Covers activities such as Initial Coin Offerings (ICOs), token sales, wallet provision, exchanges, brokering, and other virtual asset-related services.
- Mandates that entities providing virtual asset services in or from Seychelles must be licensed by the FSA.
- Requires VASPs to have a physical presence in Seychelles, including an office and qualified personnel.
- Requires VASPs to appoint at least one Seychelles resident as a director.
- Specifies capital requirements depending on the type of virtual asset service offered.

IV. Requirements for Compliance (for VASPs)

Licensing: VASPs must obtain a license from the FSA to operate legally in or from Seychelles.
AML/CFT Compliance:
- Implement KYC/AML procedures, including customer due diligence.
- Comply with international AML/CFT standards and FATF recommendations.
Physical Presence: VASPs must have a physical office and qualified personnel in Seychelles.
Resident Director: VASPs must appoint at least one Seychelles resident as a director.
Capital Requirements: VASPs must meet specific capital requirements based on the services they offer.

V. Notable Restrictions or Limitations

Prohibited Activities:
- The operation of mining facilities.
- Mixer/tumbler services.
VASP License Eligibility:
- Only domestic companies and International Business Companies (IBCs) are eligible to apply for a VASP license.
- Individuals are expressly ineligible to be licensed as VASPs.
Consumer Risk: Consumers are advised to remain cautious about the risks and potential financial loss and damage that can be incurred when dealing with virtual assets or virtual asset service providers not registered nor authorised under any law, especially Seychelles laws.

VI. Recent Developments or Changes

Enactment of the VASP Act (September 1, 2024): This is the most significant recent development, establishing a formal regulatory framework for VASPs.
FSA Warnings: The FSA has issued warnings to consumers about the risks of dealing with unregistered or unauthorized VASPs.
Government Stance: The government has adopted a positive stance toward virtual assets by enacting the Seychelles VASP Act in effect from September 1, 2024. Now has a clear legal framework for licensing and regulating VASPs, including exchanges, custodians, and token issuers.

VII. Impact on Retail Traders

Indirect Impact: The VASP Act primarily regulates service providers, but it indirectly affects retail traders by creating a safer and more transparent environment.
Safer Environment: Aims to ensure AML/CFT compliance and consumer protection on platforms used by retail investors.
Consumer Protection: The FSA's warnings about unregistered VASPs aim to protect retail investors from financial loss.

This bullet-point format provides a clear and concise overview of the regulatory landscape for Retail_Trading_Status in Seychelles, making it easy to scan and understand the key points.

Full Analysis Report

Report on the Current Status of Retail_Trading_Status in Seychelles

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

1. Identified Current Status:

Allowed-Regulated

2. Detailed Narrative Explanation:

Seychelles has moved towards a regulated environment for cryptocurrencies. Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies. However, this activity is now subject to a developing regulatory framework, primarily through the enactment of the Virtual Asset Service Providers Act, 2024 (VASP Act), which came into force on September 1, 2024. This Act establishes a licensing regime for Virtual Asset Service Providers (VASPs) and aims to address risks, particularly concerning Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).

Historically, Seychelles had a more underdeveloped legal regime for cryptocurrencies, with ICOs not being specifically regulated. Cryptocurrencies were not recognized as legal tender by the Central Bank of Seychelles, and individuals trading in them did so at their own risk. Concerns over the misuse of virtual assets for illicit activities and an increase in crypto-related complaints prompted the government to develop a more formal regulatory approach. A National Risk Assessment on Virtual Assets and Virtual Asset Service Providers highlighted the potential risks and the need for a proper framework.

The VASP Act now mandates that entities providing virtual asset services in or from Seychelles must be licensed by the Financial Services Authority (FSA) Seychelles. This includes exchanges, wallet providers, and other crypto-related businesses. These licensed entities are subject to AML/CFT obligations in line with the Financial Action Task Force (FATF) recommendations. This includes implementing KYC/AML procedures, such as customer due diligence.

While the VASP Act primarily focuses on regulating service providers, it directly impacts retail traders by aiming to create a safer and more transparent environment. The FSA has issued warnings to consumers about dealing with unregistered or unauthorized VASP businesses, emphasizing the risks of financial loss.

It is important to note that while individuals can trade cryptocurrencies, certain virtual asset-related activities are prohibited under the VASP Act, such as the operation of mining facilities and mixer/tumbler services. Also, the Act specifies that only domestic companies and International Business Companies (IBCs) are eligible to apply for a VASP license; individuals are expressly ineligible to be licensed as VASPs. This distinction is crucial: individuals can trade and hold crypto, but they cannot provide virtual asset services without a license, which is only available to corporate entities.

The regulatory framework requires VASPs to have a physical presence in Seychelles, including an office and qualified personnel, and to appoint at least one Seychelles resident as a director. There are also specific capital requirements depending on the type of virtual asset service offered.

In summary, retail cryptocurrency trading is permitted in Seychelles but is now operating within a regulated environment. This regulation is primarily aimed at service providers to ensure AML/CFT compliance and consumer protection, which indirectly affects retail investors by setting standards for the platforms they may use.

3. Specific, Relevant Text Excerpts:

Virtual Asset Service Providers Act, 2024 (VASP Act): "The Virtual Asset Service Providers Act, 2024 (Seychelles VASP Act) of Seychelles was enacted on August 30, 2024, and came into force on September 1, 2024. This legislation establishes a framework for Virtual Asset Service Providers (VASPs) operating in or from Seychelles, covering activities such as Initial Coin Offerings (ICOs), token sales, wallet provision, exchanges, brokering, and other virtual asset-related services."
FSA as Regulator: "The Financial Services Authority (Seychelles FSA) is designated as the regulatory body responsible for licensing, supervision, and enforcement under the Act."
AML/CFT Compliance: "The Seychelles FSA is responsible for ensuring that entities engaged in virtual asset activities comply with international standards, including anti-money laundering (AML) and counter-terrorism financing (CTF) obligations in line with the Financial Action Task Force (FATF) Recommendations."
Legality for Individuals: "Cryptocurrency is legal in Seychelles, and the country has adopted a relatively open stance towards digital assets. While Seychelles does not yet have dedicated cryptocurrency regulations like some larger financial hubs, the jurisdiction allows Seychelles Companies and individuals to trade, hold, and invest in cryptocurrencies without restriction." (Note: This source predates the full implementation of the VASP Act but reflects the general permissibility for individuals).
VASP Licensing Requirement: "According to the Seychelles VASP Act, no legal person or entity can carry on business using virtual assets in or from Seychelles unless they are licensed."
Warning to Consumers (Pre-VASP Act Full Implementation): "Consumers dealing with virtual assets or virtual asset service providers not registered nor authorised under any law, especially Seychelles laws, are advised to remain cautious about the risks and potential financial loss and damage that can be incurred."
Prohibited Activities: "The Virtual Asset Service Providers Act, 2024 prohibits the operation of mining facilities, mixers and tumblr service."
Individuals Ineligible for VASP License: "Only domestic companies and International Business Companies are eligible to apply for a Virtual Asset Service Providers Licence. Individuals are expressly ineligible."
Government Stance: "The government of Seychelles has adopted a positive and stance toward virtual assets by enacting the Seychelles VASP Act in effect from September 1, 2024. Now has a clear legal framework for licensing and regulating VASPs, including exchanges, custodians, and token issuers."
Central Bank Position (Pre-VASP Act): "It is good to note that cryptocurrency is not recognised as legal tender by Seychelles' Central Bank. Any individuals who trade in it are doing so at their own risk." (This highlights the historical context and risk warnings before the new comprehensive regulation).

4. Direct, Accessible URL Links to Specific Sources:

Charltons Quantum (Seychelles Virtual Assets Regulation): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGt1aB0hsFGQYtlTy6HlgvpdihaMUZpC0i3_au6WxKbKIEok7tTm3I1oretqA5pqKjpUTp_wqzHZUblGeYT2DJbjfobACNEwhQ4qy1Lskn5OtWiYv78cKYgsduh9KHtC6gb2c3wz7Y_8aD7DlNkYEOaJM4Yrni16qGjrj72zA==
Financial Services Authority Seychelles (FAQs): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHIdsRgeFsuW7ilETLEYkPRMA9vFBcKE9qTVtY9tlvphS0s9opPi5Q6AYDeapC_mXAjpE9CachB8SE-ECTuf_Me-xhoosQh91cuCZmQEue_G4X4htpfVK3433NjaAA=
Charltons Quantum (An overview of the regulation of virtual assets in Seychelles): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH0TeFBxYiMI7bvlLVaiUgy2hP_6pYfulpmUWJ7-aXIzDzpP4RrUXPQjKaiBfqt_eeQo-eSxalh21Lxn2tcSC0I6s64ucs5cyKeAGPkj-Pri7Iopk2QwOu1114Etdc_dHnVSnxb1b8FyMvR-TVbTlL-gkYZ8hFjNC7bxDhWfvNPSVDZNKhCJSA7DRdv
Freeman Law (The Seychelles & Cryptocurrency): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF_qTtCDFb3EMl3oIWoRcWaZK8iv60lzhlW3I4sUHmTE8FzC4n70_hm0oK-LE-ROcHqzRYHIyQrPJ0Z5UAuO8ZiT6TeCW9ytRocNp32ofap2qBL3AMpDhfLq4zT8tTW1SV1DHd7RqQc4-3pGdt_hddl
Prifinance (Crypto License in Seychelles 2025): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHVR046z2aUUEVykUJwoLmoM3bBj-vRhpgYeIaMTogLWZ92-g3aEPT4dppZLBh8cICEklaJ6KLSKIhCb4WzClWnPP6MeL4XSVGtgXHaW708-iPSl4VKmHYJdx7lq0e7yS1dR1Dq2VlT-tZdkLyK
Manimama Law Firm (Crypto in Seychelles: lawless frontier or opportunity awaits? - October 2023): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHbfynG9CfliOWsxehErNbB_Taiy0y2-chtkRqPtRX2J-SXADdO-506HMK7aYKYzdHDFHgONYoPDT4ldQ2UjvupSR8igwRw9XNw-qui7CKcykpNBu2KUIULR4gbqY0WP1vPsypiHyEraGSMhkYCeehmuDnIjTsLDxo9KetXYB4mbe-bsumAZ58hm7mv
Campio Group (Seychelles launches licensing for crypto services: new requirements - November 2024): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFPG5youES0EzO_ojm4kwSq_7NNzAaU1b2K0eCi38g400MuMX1AsN-cElQs7Snfld9EH0ms1wjtpyAa95uDZhezEeUXow0tDdzyh9zx380L8eCk77E6vWhD3oGHbBsqx6nL2j3q14uFjoiqSuQwO6nK45VWSsXvYxKY6EMC9cQN88ppJ45o65EAwYrnFRjmWWkP2TphFxE5RrHWDjtMCWGp9JcvHgk=
Appleby (The Seychelles: Enhancing The Proposed Framework For Virtual Asset Service Providers - April 2024): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQG7SQnRtDDuDdAGWWIJdUl-xm93eOo2B-IqWsRECE8NpJvqnUZVkmgDRQV_aGBVefWyVAah9GqiI48DdxI7kxeZJ60TG7HzaWcjx0brRPYXr2LnrBOvhjvn1bmhmscAgOJUCAGA8-T6TaDm59d4Br-H6bNS3_MLMJ6hkwfhFJ31Sy4ZTKQX5GyyhdCCPZYw6omndj0g6WALuY6wxgZZfP9q71gCltcJqRwUTq2gedTCstPXJyJdgV0jU-Q=
Gofaizen & Sherle (Crypto License in Seychelles | How to get in 2025?): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFAZsRxtydF_0dc_WA4PETGjQhET3QhdfDGLrq7awLc8mYjmFhNkUDNTE5ZYDcyakHYsEdG3TaotnFdpit3U5W9TyH11ZPvMALOjgFZ1wnSQBl3ZJ-oFXSNvL_zKBve1gTQE4nlWLtmljFltReHiAbAIiubGWduKnmK5SwQ01P7
LegalBison (Seychelles Crypto License – Costs and Process in 2025): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGMu6hfFHf9CI1HhDAuOtT6C3kax5aZYBGPqn2TChhKiJ3guqqpiMhxURyllQXxhsQqy4sHG7QwrWJm6VRuGHmipkOwN-erp67wJ1dYrUVrU7QJL-d_gaY28IGjityT33K_VXCy8kqJTt8ov4g=
Global Law Experts (Crypto License In Seychelles): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFKTZy31BR9zbkSOnZASnFvbrjddkcZCXscrEAoJVS97thOiZ55VrfnHy0A5xZRm_oh8F9uEWGVLd6jFwlT44EeL0qvq14E0Uo6TyfFVTqRehzdAsMr61bMVPKAAnExLzpwThAGBjUvqMOL62cZcWfadWilisM=
Merkle Science (Seychelles Virtual Asset Service Providers Bill 2024 Overview - August 2024): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGM4HFmhSPpNnnpgS2g-dzQiozCRTGB_MiOppy7pqP_6jTyFBkrHG96CKEztgitgPnPuCcZTFcH-Up7jIDMOz-T5fQAIVEwpVY8mlax1hMOlCNWWqkZ9lO_0n6h3PM6I8eO7zaoP01XjgEp1n8mlKEeWTcZimHiZQcNIQhbSRovlXwrtGKzZv7STJYar5IoH19qJMOC5sooFCllBw==
Cointelegraph (An overview of crypto regulations in the Seychelles - November 2023): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFUWQX9tYayq1jOowgoqEBxOcI8Okpnv9I9PvDIHGFwfKjoHXrqwA80E2KDrOQFy4EaCkX8uLmA3gU_MWBodXX8xw2h-pzy1IkXY7F2rJ9SYiJ_Vn-kb9gBBsnX5Y3RrDL9cRjUg-F0KEWl-UBqFknJAdgTAMgB1whZXKKCqaRhZSXJmRwX1EDg
FiveComply (Cryptos - Seychelles – FSA): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEarNr3fNjvn-Iu4KQhn-FuhPdkpl-V5amLsHdzYqh8rMY2Jud8-N_s3rQvZbn2GUcenczsxLnX5VFWRpbN4Zi1krwIJC35K2t8VIaxLtuzU3faCTkLKJfJMoRMj-SIuC6UkhJWaPxm_9w=
Seychelles News Agency (Seychelles working on national policy for virtual assets - April 2023): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH8alQvs5S4hc0s62UYGTfrZwT5YleOUQJAKXmn_d-2cUj0tY7Cvrgi_naGJRug7zF0b8Tbf5urv9GVL2yEg6XFWxvxd8C1t8QhCY1GnE9nKoR1qIDoimOzJpABLHRMiuHd4jorPCUct108OcAe1_5nE0nSFhIRb8xJt7xL5dbsZkM8oJcLAM0HkTw6XgeYKbZcvOFVOTb6TEbxC6IcUpXgfl985fzt
Seychelles News Agency (Seychelles' Financial Services Authority cautions consumers about unregulated virtual asset service providers - November 2023): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFbThvN5Nvd5n53_G63Z218_Wlsqap68rSnZnWXuI_hxoynVdby3qd1HZsEwp7ig5Xxc-rhALTL2xAAEs1EDzVIrTqV9O-DNhvm4PePvdK9O3CFC1tjzxsB1pqv_XS8DwYlxoB7Of3YhhgsfzE5vGEFclLJF_odnYT1euSmwEFzs6SRDhLfct07rggC1gMVYnYYeYJCnLkC25uvSRBIysO86y5sP-ZjF5RSUb_UYNojnEt9Esat_DTZsYJadW58F-Q-m9lSMRbQNvG5n8P5SY-23NhjaFDnJgwpMni8SCA=
OVZA (Can Seychelles Companies Hold Cryptocurrency? - March 2025): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFmRN7QX9XqF4kbvkL46bEnm05TdUC3UbZTnSFrGstULKhxsRgbZcdiKAxSv7GxKBeN8jIxY8IUMn-t_Bajftoo1TIXS9_r9tYmnqngzg06nbCaZohmPDDZvYQ_5RX1UfyFdtN9dOhGcg1zeywkWnuHuhODWEV06I2g
Appleby (Embracing The Future: Seychelles Introduces The Virtual Asset Service Providers Bill, 2024 - July 2024): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGdlNxe4xBF4aEx2IhhzqNSjQrDnnTFEu6npZqP2ir3xEe-4qhJM22wNHLIHtWhqofhTomP736cEB3hhfEMb1Vu2-uDelzH0NBzdBdZwcjhHolNnPlWv70sOYvRrWojv9eNF9bHgjfAXZad0NRmjojhQNK_IqUJ3K_ywOUWvLcBWmbqbV9rXNEENPzWS5soYmsp90yY0dv854QQY7dylnqkb80bnf21pQLEcKB0QmETN4FsvUINkTuvUoukVNyS5fA=
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**Report on the Current Status of Retail_Trading_Status in Seychelles**

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Identified Current Status:**

Allowed-Regulated

**2. Detailed Narrative Explanation:**

Seychelles has moved towards a regulated environment for cryptocurrencies. Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies. However, this activity is now subject to a developing regulatory framework, primarily through the enactment of the Virtual Asset Service Providers Act, 2024 (VASP Act), which came into force on September 1, 2024. This Act establishes a licensing regime for Virtual Asset Service Providers (VASPs) and aims to address risks, particularly concerning Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).

Historically, Seychelles had a more underdeveloped legal regime for cryptocurrencies, with ICOs not being specifically regulated. Cryptocurrencies were not recognized as legal tender by the Central Bank of Seychelles, and individuals trading in them did so at their own risk. Concerns over the misuse of virtual assets for illicit activities and an increase in crypto-related complaints prompted the government to develop a more formal regulatory approach. A National Risk Assessment on Virtual Assets and Virtual Asset Service Providers highlighted the potential risks and the need for a proper framework.

The VASP Act now mandates that entities providing virtual asset services in or from Seychelles must be licensed by the Financial Services Authority (FSA) Seychelles. This includes exchanges, wallet providers, and other crypto-related businesses. These licensed entities are subject to AML/CFT obligations in line with the Financial Action Task Force (FATF) recommendations. This includes implementing KYC/AML procedures, such as customer due diligence.

While the VASP Act primarily focuses on regulating service providers, it directly impacts retail traders by aiming to create a safer and more transparent environment. The FSA has issued warnings to consumers about dealing with unregistered or unauthorized VASP businesses, emphasizing the risks of financial loss.

It is important to note that while individuals can trade cryptocurrencies, certain virtual asset-related activities are prohibited under the VASP Act, such as the operation of mining facilities and mixer/tumbler services. Also, the Act specifies that only domestic companies and International Business Companies (IBCs) are eligible to apply for a VASP license; individuals are expressly ineligible to be licensed as VASPs. This distinction is crucial: individuals can *trade* and *hold* crypto, but they cannot *provide virtual asset services* without a license, which is only available to corporate entities.

The regulatory framework requires VASPs to have a physical presence in Seychelles, including an office and qualified personnel, and to appoint at least one Seychelles resident as a director. There are also specific capital requirements depending on the type of virtual asset service offered.

In summary, retail cryptocurrency trading is permitted in Seychelles but is now operating within a regulated environment. This regulation is primarily aimed at service providers to ensure AML/CFT compliance and consumer protection, which indirectly affects retail investors by setting standards for the platforms they may use.

**3. Specific, Relevant Text Excerpts:**

*   **Virtual Asset Service Providers Act, 2024 (VASP Act):** "The Virtual Asset Service Providers Act, 2024 (Seychelles VASP Act) of Seychelles was enacted on August 30, 2024, and came into force on September 1, 2024. This legislation establishes a framework for Virtual Asset Service Providers (VASPs) operating in or from Seychelles, covering activities such as Initial Coin Offerings (ICOs), token sales, wallet provision, exchanges, brokering, and other virtual asset-related services."
*   **FSA as Regulator:** "The Financial Services Authority (Seychelles FSA) is designated as the regulatory body responsible for licensing, supervision, and enforcement under the Act."
*   **AML/CFT Compliance:** "The Seychelles FSA is responsible for ensuring that entities engaged in virtual asset activities comply with international standards, including anti-money laundering (AML) and counter-terrorism financing (CTF) obligations in line with the Financial Action Task Force (FATF) Recommendations."
*   **Legality for Individuals:** "Cryptocurrency is legal in Seychelles, and the country has adopted a relatively open stance towards digital assets. While Seychelles does not yet have dedicated cryptocurrency regulations like some larger financial hubs, the jurisdiction allows Seychelles Companies and individuals to trade, hold, and invest in cryptocurrencies without restriction." (Note: This source predates the full implementation of the VASP Act but reflects the general permissibility for individuals).
*   **VASP Licensing Requirement:** "According to the Seychelles VASP Act, no legal person or entity can carry on business using virtual assets in or from Seychelles unless they are licensed."
*   **Warning to Consumers (Pre-VASP Act Full Implementation):** "Consumers dealing with virtual assets or virtual asset service providers not registered nor authorised under any law, especially Seychelles laws, are advised to remain cautious about the risks and potential financial loss and damage that can be incurred."
*   **Prohibited Activities:** "The Virtual Asset Service Providers Act, 2024 prohibits the operation of mining facilities, mixers and tumblr service."
*   **Individuals Ineligible for VASP License:** "Only domestic companies and International Business Companies are eligible to apply for a Virtual Asset Service Providers Licence. Individuals are expressly ineligible."
*   **Government Stance:** "The government of Seychelles has adopted a positive and stance toward virtual assets by enacting the Seychelles VASP Act in effect from September 1, 2024. Now has a clear legal framework for licensing and regulating VASPs, including exchanges, custodians, and token issuers."
*   **Central Bank Position (Pre-VASP Act):** "It is good to note that cryptocurrency is not recognised as legal tender by Seychelles' Central Bank. Any individuals who trade in it are doing so at their own risk." (This highlights the historical context and risk warnings before the new comprehensive regulation).

**4. Direct, Accessible URL Links to Specific Sources:**

*   **Charltons Quantum (Seychelles Virtual Assets Regulation):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGt1aB0hsFGQYtlTy6HlgvpdihaMUZpC0i3_au6WxKbKIEok7tTm3I1oretqA5pqKjpUTp_wqzHZUblGeYT2DJbjfobACNEwhQ4qy1Lskn5OtWiYv78cKYgsduh9KHtC6gb2c3wz7Y_8aD7DlNkYEOaJM4Yrni16qGjrj72zA==
*   **Financial Services Authority Seychelles (FAQs):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHIdsRgeFsuW7ilETLEYkPRMA9vFBcKE9qTVtY9tlvphS0s9opPi5Q6AYDeapC_mXAjpE9CachB8SE-ECTuf_Me-xhoosQh91cuCZmQEue_G4X4htpfVK3433NjaAA=
*   **Charltons Quantum (An overview of the regulation of virtual assets in Seychelles):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH0TeFBxYiMI7bvlLVaiUgy2hP_6pYfulpmUWJ7-aXIzDzpP4RrUXPQjKaiBfqt_eeQo-eSxalh21Lxn2tcSC0I6s64ucs5cyKeAGPkj-Pri7Iopk2QwOu1114Etdc_dHnVSnxb1b8FyMvR-TVbTlL-gkYZ8hFjNC7bxDhWfvNPSVDZNKhCJSA7DRdv
*   **Freeman Law (The Seychelles & Cryptocurrency):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF_qTtCDFb3EMl3oIWoRcWaZK8iv60lzhlW3I4sUHmTE8FzC4n70_hm0oK-LE-ROcHqzRYHIyQrPJ0Z5UAuO8ZiT6TeCW9ytRocNp32ofap2qBL3AMpDhfLq4zT8tTW1SV1DHd7RqQc4-3pGdt_hddl
*   **Prifinance (Crypto License in Seychelles 2025):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHVR046z2aUUEVykUJwoLmoM3bBj-vRhpgYeIaMTogLWZ92-g3aEPT4dppZLBh8cICEklaJ6KLSKIhCb4WzClWnPP6MeL4XSVGtgXHaW708-iPSl4VKmHYJdx7lq0e7yS1dR1Dq2VlT-tZdkLyK
*   **Manimama Law Firm (Crypto in Seychelles: lawless frontier or opportunity awaits? - October 2023):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHbfynG9CfliOWsxehErNbB_Taiy0y2-chtkRqPtRX2J-SXADdO-506HMK7aYKYzdHDFHgONYoPDT4ldQ2UjvupSR8igwRw9XNw-qui7CKcykpNBu2KUIULR4gbqY0WP1vPsypiHyEraGSMhkYCeehmuDnIjTsLDxo9KetXYB4mbe-bsumAZ58hm7mv
*   **Campio Group (Seychelles launches licensing for crypto services: new requirements - November 2024):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFPG5youES0EzO_ojm4kwSq_7NNzAaU1b2K0eCi38g400MuMX1AsN-cElQs7Snfld9EH0ms1wjtpyAa95uDZhezEeUXow0tDdzyh9zx380L8eCk77E6vWhD3oGHbBsqx6nL2j3q14uFjoiqSuQwO6nK45VWSsXvYxKY6EMC9cQN88ppJ45o65EAwYrnFRjmWWkP2TphFxE5RrHWDjtMCWGp9JcvHgk=
*   **Appleby (The Seychelles: Enhancing The Proposed Framework For Virtual Asset Service Providers - April 2024):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQG7SQnRtDDuDdAGWWIJdUl-xm93eOo2B-IqWsRECE8NpJvqnUZVkmgDRQV_aGBVefWyVAah9GqiI48DdxI7kxeZJ60TG7HzaWcjx0brRPYXr2LnrBOvhjvn1bmhmscAgOJUCAGA8-T6TaDm59d4Br-H6bNS3_MLMJ6hkwfhFJ31Sy4ZTKQX5GyyhdCCPZYw6omndj0g6WALuY6wxgZZfP9q71gCltcJqRwUTq2gedTCstPXJyJdgV0jU-Q=
*   **Gofaizen & Sherle (Crypto License in Seychelles | How to get in 2025?):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFAZsRxtydF_0dc_WA4PETGjQhET3QhdfDGLrq7awLc8mYjmFhNkUDNTE5ZYDcyakHYsEdG3TaotnFdpit3U5W9TyH11ZPvMALOjgFZ1wnSQBl3ZJ-oFXSNvL_zKBve1gTQE4nlWLtmljFltReHiAbAIiubGWduKnmK5SwQ01P7
*   **LegalBison (Seychelles Crypto License – Costs and Process in 2025):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGMu6hfFHf9CI1HhDAuOtT6C3kax5aZYBGPqn2TChhKiJ3guqqpiMhxURyllQXxhsQqy4sHG7QwrWJm6VRuGHmipkOwN-erp67wJ1dYrUVrU7QJL-d_gaY28IGjityT33K_VXCy8kqJTt8ov4g=
*   **Global Law Experts (Crypto License In Seychelles):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFKTZy31BR9zbkSOnZASnFvbrjddkcZCXscrEAoJVS97thOiZ55VrfnHy0A5xZRm_oh8F9uEWGVLd6jFwlT44EeL0qvq14E0Uo6TyfFVTqRehzdAsMr61bMVPKAAnExLzpwThAGBjUvqMOL62cZcWfadWilisM=
*   **Merkle Science (Seychelles Virtual Asset Service Providers Bill 2024 Overview - August 2024):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGM4HFmhSPpNnnpgS2g-dzQiozCRTGB_MiOppy7pqP_6jTyFBkrHG96CKEztgitgPnPuCcZTFcH-Up7jIDMOz-T5fQAIVEwpVY8mlax1hMOlCNWWqkZ9lO_0n6h3PM6I8eO7zaoP01XjgEp1n8mlKEeWTcZimHiZQcNIQhbSRovlXwrtGKzZv7STJYar5IoH19qJMOC5sooFCllBw==
*   **Cointelegraph (An overview of crypto regulations in the Seychelles - November 2023):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFUWQX9tYayq1jOowgoqEBxOcI8Okpnv9I9PvDIHGFwfKjoHXrqwA80E2KDrOQFy4EaCkX8uLmA3gU_MWBodXX8xw2h-pzy1IkXY7F2rJ9SYiJ_Vn-kb9gBBsnX5Y3RrDL9cRjUg-F0KEWl-UBqFknJAdgTAMgB1whZXKKCqaRhZSXJmRwX1EDg
*   **FiveComply (Cryptos - Seychelles – FSA):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEarNr3fNjvn-Iu4KQhn-FuhPdkpl-V5amLsHdzYqh8rMY2Jud8-N_s3rQvZbn2GUcenczsxLnX5VFWRpbN4Zi1krwIJC35K2t8VIaxLtuzU3faCTkLKJfJMoRMj-SIuC6UkhJWaPxm_9w=
*   **Seychelles News Agency (Seychelles working on national policy for virtual assets - April 2023):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH8alQvs5S4hc0s62UYGTfrZwT5YleOUQJAKXmn_d-2cUj0tY7Cvrgi_naGJRug7zF0b8Tbf5urv9GVL2yEg6XFWxvxd8C1t8QhCY1GnE9nKoR1qIDoimOzJpABLHRMiuHd4jorPCUct108OcAe1_5nE0nSFhIRb8xJt7xL5dbsZkM8oJcLAM0HkTw6XgeYKbZcvOFVOTb6TEbxC6IcUpXgfl985fzt
*   **Seychelles News Agency (Seychelles' Financial Services Authority cautions consumers about unregulated virtual asset service providers - November 2023):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFbThvN5Nvd5n53_G63Z218_Wlsqap68rSnZnWXuI_hxoynVdby3qd1HZsEwp7ig5Xxc-rhALTL2xAAEs1EDzVIrTqV9O-DNhvm4PePvdK9O3CFC1tjzxsB1pqv_XS8DwYlxoB7Of3YhhgsfzE5vGEFclLJF_odnYT1euSmwEFzs6SRDhLfct07rggC1gMVYnYYeYJCnLkC25uvSRBIysO86y5sP-ZjF5RSUb_UYNojnEt9Esat_DTZsYJadW58F-Q-m9lSMRbQNvG5n8P5SY-23NhjaFDnJgwpMni8SCA=
*   **OVZA (Can Seychelles Companies Hold Cryptocurrency? - March 2025):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFmRN7QX9XqF4kbvkL46bEnm05TdUC3UbZTnSFrGstULKhxsRgbZcdiKAxSv7GxKBeN8jIxY8IUMn-t_Bajftoo1TIXS9_r9tYmnqngzg06nbCaZohmPDDZvYQ_5RX1UfyFdtN9dOhGcg1zeywkWnuHuhODWEV06I2g
*   **Appleby (Embracing The Future: Seychelles Introduces The Virtual Asset Service Providers Bill, 2024 - July 2024):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGdlNxe4xBF4aEx2IhhzqNSjQrDnnTFEu6npZqP2ir3xEe-4qhJM22wNHLIHtWhqofhTomP736cEB3hhfEMb1Vu2-uDelzH0NBzdBdZwcjhHolNnPlWv70sOYvRrWojv9eNF9bHgjfAXZad0NRmjojhQNK_IqUJ3K_ywOUWvLcBWmbqbV9rXNEENPzWS5soYmsp90yY0dv854QQY7dylnqkb80bnf21pQLEcKB0QmETN4FsvUINkTuvUoukVNyS5fA=
*   **Cointelegraph (Crypto-friendly Seychelles is developing policy to rein in digital asset companies: Report - April 2023):** https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHiWfDrr6H49sFUoVCSSW6Zs5ywlEO13WEs0KUACl4wKJDtfCPbJ2ZUsvVutzeirLbN0-o6jJOkbRBUjVWJQbGcBE4wVtsMYYQXr3Gk6KJZZEuKU4xwPZT3tEwf6BhxK35hKbWi5IGG5GitK_MLPe0vZrLCmot_u6s7FxoxVy723CG5jafmdflZYj2sJjAL7ax1MaSXSV-U8G9LdqSG7EgVde4v4pJo75A=

Web Sources (19)

Sources discovered via web search grounding

Search queries used (7)

Seychelles cryptocurrency regulation retail
Financial Services Authority Seychelles cryptocurrency
Central Bank of Seychelles cryptocurrency policy
Seychelles AML/CFT framework cryptocurrency
Is cryptocurrency trading legal in Seychelles for individuals
Seychelles crypto license requirements
Seychelles digital asset regulatory framework

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