Financial technology is in its early stages in Seychelles, however, the government and the Central Bank are currently working on creating a legal framework which enables those who want to invest in cryptocurrencies to operate under advantageous conditions.
At the moment, most of the activities in the fintech area imply various money transfers and payment services. Those interested in launching initial coin offerings (ICOs) and trade cryptocurrencies are expected to be able to apply for cryptocurrency licenses in Seychelles.
Our company formation agents in Seychelles can offer detailed information on the situation of obtaining a cryptocurrency license and setting up an exchange in the insular state. We can also assist those who want to apply for other types of financial licenses.
Legislation on cryptocurrencies in Seychelles
At the moment, Seychelles does not have a specific legislation targeting the issuance of cryptocurrency licenses, however, with the increasing interest of entrepreneurs here to create fintech companies, including cryptocurrency exchanges, the government has adopted the National Payment System Vision and Strategy which aims at the improvement of the payment structure in Seychelles and the first steps to be taken in order for a cryptocurrency licensing regulatory regime to be put in place.
The current laws which target cryptocurrency businesses, and which allow the trading of digital coins online by resident companies are:
- The International Trade Zone Act and the International Trade Zone Regulations which allow the enabling of international free zone in which such companies can operate;
- The Companies Law which provides for the creation of a domestic company under which a cryptocurrency license can be obtained;
- The Companies Special License Act which provides for special license companies to trade virtual money online;
- The Anti Money Laundering Law and Regulations which apply to fintech companies in Seychelles;
- The Electronic Transactions Act which regulates electronic signatures which can be used in online transactions and payments.
In order to trade through cryptocurrency exchanges, a Seychelles cryptocurrency license can be obtained under the form of a Forex license under the provisions of the Securities Act.
Our agents can help you register any type of company with the purpose of obtaining a cryptocurrency license, including an offshore company in Seychelles.
Company registration in order to obtain a Seychelles cryptocurrency license
Those who want to set up cryptocurrency exchanges must first register a company in Seychelles. In most cases, the special license company is employed for obtaining various types of financial licenses. In the case of cryptocurrency trading activities, it is important to note that while specific regulations have not been defined yet, the company will need to respect the Anti Money Laundering Regulations and conduct these activities through local banks. Seychelles banks will then need to report the transactions with the Financial Supervisory Authority in Seychelles.
An important thing to consider is that the National Bank works closely with the Department of Information Communications and Technology with respect to the creation of the technology which enables the online trading of cryptocurrencies.
Our company formation consultants in Seychelles can help you register a business with the purpose of applying for a cryptocurrency license.
How to open a cryptocurrency startup in Seychelles
Seychelles has established itself as a hub for cryptocurrency and blockchain-related businesses, due to its favorable regulatory environment and tax incentives. Therefore, opening a cryptocurrency startup is possible, but you still need a cryptocurrency license in Seychelles in order to activate in this field.
You can choose any company type for your startup, including a Limited Liability Company (LLC), a partnership, or a sole proprietorship. Your startup company must be registered with the Seychelles International Business Authority (SIBA) in accordance with the International Business Companies Act.
Applying for the cryptocurrency license in Seychelles for startups includes complying with the Financial Services Authority (FSA) guidelines for digital assets businesses, which include Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations.
As for any other business, you need to open a bank account for receiving and managing funds. You must also develop your cryptocurrency platform, including your website, exchange, and wallet services.
In order to open a startup, you can consider seeking investments from venture capital firms or angel investors who specialize in the cryptocurrency industry. Additionally, you can participate in Seychelles ICOs or other forms of fundraising to secure the necessary funds for your startup.
Licensing options for Seychelles cryptocurrency exchanges
When it comes to the licensing options for companies seeking to trade cryptocurrencies in Seychelles, the broker or securities dealer’s license is one of the suitable options. Under this license which can also be obtained by foreign investors, one can also launch ICOs. It is useful to know that one can set up online gaming platforms through which cryptocurrencies are accepted as method of payment.
Companies seeking to obtain Seychelles cryptocurrency licenses should apply for a securities dealer’s license with the Central Bank.
ICOs in Seychelles
An Initial Coin Offering (ICO) is a type of fundraising method commonly used in the cryptocurrency industry. In an ICO, a company creates and sells digital tokens to investors, who receive the tokens in exchange for their investment. The tokens can then be used within the platform or traded on cryptocurrency exchanges. ICOs are different from other investment funds.
ICOs are very popular in Seychelles because the country has a favorable regulatory environment for cryptocurrency and blockchain-related businesses.
ICOs are still subject to certain regulations and laws, such as the FSA guidelines for digital assets businesses. Companies conducting ICOs in Seychelles must comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations and provide accurate and transparent information to investors.
If you are considering conducting an ICO in Seychelles, it’s important to seek professional legal and financial advice to ensure that you comply with all relevant regulations and laws. You will also minimize the risks associated with operating in the cryptocurrency industry.
Please contact our team for company formation in Seychelles to discuss more details about your cryptocurrency businesses and opportunities.
Cryptocurrency taxes in Seychelles
The taxation of cryptocurrencies in Seychelles is still in the process of being defined and regulated. However, companies registered in Seychelles are subject to a low corporate tax rate of 3% which applies to cryptocurrency businesses as well. Since there is no specific guidance on how cryptocurrencies should be treated for tax purposes, individuals who earn income from cryptocurrency investments or activities may not be subject to personal income tax. The VAT for goods and services related to cryptocurrencies in Seychelles is also not specifically regulated at this time.
We can guide you in every step of setting up a company in Seychelles to make sure that your cryptocurrency company follows all relevant tax laws and regulations.
Seychelles cryptocurrency offshore company
It is also possible to start an offshore cryptocurrency business in Seychelles. The process is complex, but here are some general steps:
- Choosing a unique company name that is not already in use.
- Incorporating the company in Seychelles by submitting the necessary documentation and paying the relevant fees. You will also need to appoint directors and shareholders for the company.
- Register for taxes and obtain a tax identification number.
- Open a bank account (in person or remotely).
- Obtain a cryptocurrency license in order to operate in Seychelles. Other additional documents might also be required.
Do not hesitate to contact our team if you are interested in opening an offshore cryptocurrency company in Seychelles.
The cryptocurrency sector in Seychelles
Cryptocurrencies are becoming increasingly popular in countries around the world and the Seychelles government is working on creating a legislation which encourages foreign investors interested in this sector. At the moment:
- there are around 40 ICOs registered and operating from Seychelles;
- out of these, 6 do not allow Seychelles citizens to participate in trading activities in these ICOs;
- there are 6cryptocurrency exchanges operating from Seychelles;
- there are over 1,000 crypto owners in Seychelles.
If you need more information on how to create a Seychelles cryptocurrency exchange, please contact our local specialists.