In the ever-evolving landscape of virtual assets, Seychelles plans to offer a robust regulatory framework for Virtual Asset Service Providers (VASPs) through its comprehensive VASP License. Administered by the Financial Services Authority (FSA), Seychelles, this license allows businesses to engage in various virtual asset activities on behalf of clients, ensuring a secure and compliant environment.

Definition of VASP: A VASP, as defined by the VASP Act, is a business involved in activities such as the exchange between virtual assets and fiat currencies, safekeeping and administration of virtual assets, and provision of financial services related to virtual asset issuers.

Licensing Authority: The FSA Seychelles is the licensing authority for VASPs, ensuring a transparent and regulated environment for virtual asset-related activities.

Eligibility Criteria: To obtain a VASP License, applicants must establish a company under the Seychelles Companies Act or International Business Companies Act (IBC). Legal entities incorporated outside Seychelles are ineligible. Existing regulated entities must secure approval from the Central Bank of Seychelles before applying.

Scope of Authorized Activities: The license covers various VASP activities, including Virtual Asset Wallet Providers, Exchanges, Broking, Payment Providers, and Investment Providers, each with specific types, functions, and activities allowed.

Application Process: Applicants need to submit internal documents such as a business plan, cybersecurity policy, AML/CFT policy, and more. The addition of new products and services in the future requires a variation authorization application.

Fees: Fees for the VASP License and authorized activities vary, ensuring a structured approach to compliance. From application fees to annual license fees and miscellaneous administrative fees, the fee structure reflects the commitment to a secure and regulated virtual asset environment.

Substance Requirements: Licensees must maintain physical offices in Seychelles, conduct all activities from Seychelles, and adhere to stringent substance requirements, including resident directors, qualified staff, accessible records, and client onboarding in Seychelles.

Capital and Solvency Requirement Summary: Licensees must uphold financial soundness by safeguarding client assets, maintaining operational accounts, and meeting liabilities. The Minister specifies regulations for capital, solvency requirements, and management of separate accounts.

Compliance Requirements: To ensure compliance, obligated entities must follow regulations related to identification data, transaction monitoring thresholds, no simplified due diligence measures, suspicious transaction reporting, and record maintenance.

Seychelles’ VASP License offers a gateway to a secure and compliant virtual asset ecosystem, fostering innovation while prioritizing regulatory integrity. As the digital landscape continues to evolve, the Seychelles VASP License stands as a beacon for businesses seeking a trusted and regulated environment for their virtual asset endeavors. – for more information contact us via info@zitadelleag.com