17/10/25
Seychelles has recently introduced a mandatory licensing regime for virtual asset service providers (VASPs), signalling a stricter approach to cryptocurrency regulation. This move has already prompted some exchanges to relocate to jurisdictions with looser oversight.
📜 Key Regulatory Developments
The Seychelles government now requires all VASPs to obtain a license to operate legally. This framework aligns with international efforts to ensure compliance with anti-money laundering (AML) and investor protection standards. Recent cases, such as KuCoin and BTSE, illustrate the consequences of failing to meet regulatory expectations – including forced shutdowns and re-domiciling to countries with minimal oversight.
⚖️ Comparative Analysis
Seychelles’ licensing regime mirrors global trends in jurisdictions like the European Union and Singapore, where regulatory clarity is paired with strict compliance obligations. Exchanges moving to unregulated territories may avoid immediate licensing burdens but expose themselves to reputational and legal risks, particularly regarding cross-border transactions.
💼 Practical Implications
For crypto service providers targeting international markets, obtaining a Seychelles VASP license is becoming a critical compliance step. The experience of KuCoin – facing DOJ criminal charges and civil penalties – highlights the high stakes for non-compliance and the necessity for robust AML/KYC systems.
✅ Conclusion
Seychelles’ regulatory tightening underscores the importance of proactive compliance for VASPs. Exchanges and service providers must assess licensing requirements carefully and implement effective AML/KYC measures. Contact NUR Legal for expert guidance on navigating Seychelles’ crypto regulatory landscape. Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com
Kätrin Särap