Victoria, Friday, August 23, 2024-The Seychelles National Assembly passed a bill to regulate virtual asset service providers (VASPs), marking a significant step in the country’s digital finance landscape.
Introduced by Finance Minister Naadir Hassan and passed on August 8, the legislation mandates that any entity operating as a VASP in Seychelles must establish a local company under the Companies Act or the International Business Companies Act, ensuring a substantial presence in the country.
Applicants seeking to qualify for a license must demonstrate this presence by having a resident director and a local office with competent personnel.
Additionally, all operational records must be accessible through the Seychelles-based office.
The law does not permit individual applicants and requires entities already regulated by the Seychelles central bank to seek additional approval.
The legislation aligns with international standards, particularly those set by the Financial Action Task Force (FATF), in an effort to prevent money laundering and other illicit activities.
The Seychelles Financial Services Authority (FSA) will enforce the new regulations, which also include provisions for educating consumers and businesses about the potential risks associated with virtual assets.
