11/10/25
Seychelles has introduced new legislation requiring all virtual asset service providers (VASPs) to obtain a license to operate legally. This regulatory shift marks a significant tightening of oversight in the country, impacting both domestic and international crypto platforms.
💼 Key Facts:
The new framework mandates that any VASP operating in Seychelles must secure a license in compliance with the Seychelles Financial Services Authority (SFSA) regulations. This aligns with global standards aimed at mitigating money laundering and enhancing investor protection. Recent enforcement actions include the effective shutdown of certain exchanges that failed to comply.
📊 Regulatory Implications:
The Seychelles model now mirrors trends seen in other regulated jurisdictions, such as the EU’s Markets in Crypto-Assets (MiCA) framework. Exchanges like KuCoin and BTSE, which faced legal challenges elsewhere, have relocated to jurisdictions with lighter regulatory requirements, highlighting the practical impact of licensing mandates.
⚖️ Sector Impact:
Crypto operators must now reassess their compliance strategies to avoid penalties or forced re-domiciliation. The licensing requirement influences operational, legal, and reputational risk management, particularly for exchanges serving international clients.
📌 Conclusion:
The Seychelles licensing requirement for crypto exchanges signals a stricter regulatory environment and reinforces global efforts to standardise crypto oversight. Operators should prioritise compliance to maintain legal operations and investor trust. NUR Legal provides expert guidance on navigating licensing obligations, ensuring your business meets all regulatory requirements efficiently. Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com
Kätrin Särap