Seychelles has established a formal regulatory regime for Virtual Asset Service Providers (VASPs) through the Virtual Asset Service Providers Act, 2024.
Under this framework, any entity operating a crypto exchange, crypto brokerage, digital asset wallet, custody platform, or virtual asset investment service in or from Seychelles must obtain a Seychelles VASP licence issued by the Financial Services Authority (FSA).
The Seychelles VASP regime is designed to position the jurisdiction as a regulated international hub for digital asset businesses, while ensuring compliance with international AML/CFT and FATF standards.
For founders launching or relocating crypto exchanges, trading platforms, custody solutions and more, regulatory success depends on three key pillars:
Scope clarity. Substance alignment. Governance integrity.
At FiveComply, our Licensing team specialises in structuring and licensing Virtual Asset Service Providers in Seychelles, ensuring applications are regulator-ready and aligned with the expectations of the Seychelles Financial Services Authority (FSA).
1. What Activities Require a Seychelles VASP Licence?
A Seychelles VASP licence is required where a company carries on virtual asset services in or from Seychelles.
The regulatory framework recognises four main licence categories:
1. Virtual Asset Exchange
Platforms facilitating the trading or exchange of digital assets, including crypto-to-crypto and crypto-to-fiat exchanges.
2. Virtual Asset Wallet / Custody Service
Businesses providing custody or safeguarding of virtual assets, including hosted wallets and custody platforms.
3. Virtual Asset Broker
Entities acting as intermediaries executing digital asset transactions on behalf of clients.
4. Virtual Asset Investment Provider
Companies offering digital asset investment management, advisory, or portfolio services.
Important Regulatory Conditions
Under the VASP Act:
- Only Seychelles-incorporated companies (domestic entities or International Business Companies – IBCs) may apply.
- Individuals cannot hold a VASP licence.
- Certain activities are expressly prohibited, including:
- crypto mining operations
- mixing or tumbling services designed to obscure transaction traceability.
One of the most common causes of regulatory delays is misclassification of the business model. The FSA assesses the actual operational structure, not merely the description in the licence application.
FiveComply assists clients in mapping their operational model to the correct VASP licence category, ensuring regulatory alignment from the outset.
2. Minimum Capital Requirements for a Seychelles VASP Licence
The Virtual Asset Service Providers (Capital and Other Financial Requirements) Regulations, 2024 prescribe minimum paid-up capital requirements depending on the licence category.
Minimum capital thresholds include:
• USD 150,000 — Virtual Asset Exchange
• USD 75,000 — Virtual Asset Broker
• USD 25,000 — Virtual Asset Wallet (Custody) Service Provider
• USD 50,000 — Virtual Asset Investment Provider
Where a company applies for multiple VASP licence categories, capital requirements must reflect the combined risk exposure of the activities conducted.
The required capital must:
- Be fully paid-up
- Be supported by clear source of funds documentation
- Be maintained continuously after licensing
For crypto exchanges and custody providers, capital planning must reflect asset safeguarding obligations and operational risk, not merely statutory minimums.
FiveComply supports applicants with:
- source of wealth and source of funds analysis
- regulatory-aligned financial projections
- capital structuring strategies.
A robust capital framework significantly reduces regulatory queries and licensing delays.
3. Substance Requirements for VASP Companies in Seychelles
The Seychelles VASP framework requires genuine economic presence in the jurisdiction.
Applicants must demonstrate operational substance, including:
- a physical office in Seychelles
- at least two natural person directors
- at least one resident director
- a local Compliance Officer
- adequate staffing proportionate to the scale of operations
- board and management meetings conducted in Seychelles
- records accessible from the Seychelles office
- local complaint handling oversight
FiveComply supports VASP clients with:
- resident director solutions
- local compliance officer appointments
- complaints handling officer support
- physical office arrangements
- governance and operational structuring
This ensures the business meets both licensing requirements and ongoing substance expectations.
4. Governance Requirements and Key Appointments
Strong governance is a core requirement for obtaining a Seychelles VASP licence.
Board Requirements
- Minimum two natural person directors
- At least one director resident in Seychelles
- All directors must satisfy Fit and Proper criteria
Mandatory Key Functions
The regulatory framework expects the appointment of:
- Directors
- Compliance Officer
- Principal Officer(s)
- Information Security Officer
- External Auditor (to be appointed within 30 days of licensing)
Fit and Proper Assessment
The Fit and Proper Code for VASPs evaluates:
- professional experience
- industry competence
- financial soundness
- reputation and integrity
- absence of adverse regulatory findings.
Failure to appoint qualified and experienced individuals is one of the most common reasons for licensing delays or regulatory queries.
FiveComply conducts Fit and Proper pre-assessments prior to application submission to ensure regulatory expectations are met.
5. AML/CFT and Compliance Framework Requirements
VASPs licensed in Seychelles must maintain a comprehensive AML/CFT compliance framework aligned with:
- Seychelles AML legislation
- FATF recommendations
- FSA supervisory expectations.
Generic templates are easily identifiable and often lead to multiple regulatory queries.
FiveComply develops customised regulatory frameworks tailored to each VASP applicant’s operating model.
6. Ongoing Compliance Obligations for Seychelles VASPs
Obtaining a Seychelles VASP licence is only the first step. Licensed entities must comply with ongoing regulatory obligations.
These include:
- payment of annual licence fees
- submission of annual compliance returns
- substance reporting
- annual AML reporting
- cybersecurity reporting
- audited financial statements prepared under IFRS
- maintaining records for at least seven years
The FSA may also request access to transaction records or operational data where required.
FiveComply provides post-licensing compliance support, assisting VASPs with regulatory reporting and ongoing FSA engagement.
7. Seychelles VASP Application Assessment
The FSA reviews only complete licence applications. Incomplete submissions could be rejected.
Why Work with FiveComply for Seychelles VASP Licensing?
FiveComply’s Offshore Division specialises in crypto licensing and financial regulation across offshore jurisdictions.
Our expertise includes among others:
- Seychelles VASP licensing
- Seychelles Securities Dealer licences
- governance and Fit & Proper structuring
- AML/CFT framework development
- capital planning and regulatory alignment
- resident director and substance solutions
- post-licensing compliance support.
Each project is structured based on the client’s operational model, regulatory strategy and risk exposure, ensuring applications are fully aligned with FSA expectations.
8. Start Your Seychelles VASP Licence Application
Seychelles has emerged as a regulated jurisdiction for digital asset businesses, offering a structured framework for crypto exchanges, brokers and custody providers.
However, regulatory approval requires:
- correct licence categorisation
- strong governance structures
- genuine local substance
- robust AML/CFT controls
- strategic regulatory engagement.
If you are planning to launch or relocate a crypto business in Seychelles, our team can guide you through the entire VASP licensing process, from initial structuring to regulatory approval.
Secure your Seychelles VASP licence with confidence.