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. Our company formation agents in Seychelles can offer detailed information on the procedure of obtaining a Seychelles cryptocurrency exchange 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.
| Quick Facts | |
|---|---|
| Laws governing cryptocurrencies businesses in Seychelles |
– International Trade Zone Act and International Trade Zone Regulations, – Companies Law, – Companies Special License Act, – Anti Money Laundering Law and Regulations, – Electronic Transactions Act, – Securities Act |
|
Uses for a cryptocurrency license |
-trading cryptocurrencies, – launching ICOs in Seychelles, – accepting payment and transfers in cryptocurrencies |
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How to obtain a cryptocurrency license in Seychelles |
Open a company in Seychelles; Comply with the Anti Money Laundering regulations; After the company is officially formed, apply for the cryptocurrency license with the Financial Conduct Authority; Pay the license fee. |
| Documents needed for a cryptocurrency license |
– detailed business plan, – documents attesting the company’s technical and operational aspects, – financial papers, – insurance papers, – adherence to the Anti Money Laundering regulations, etc. |
| Buying a cryptocurrency company |
It is possible to acquire a cryptocurrency business in Seychelles, with license included. |
| Cryptocurrency start-ups |
To finance your startup, you can seek 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. |
| ICOs in Seychelles |
Seychelles ICOs must follow the guidelines set by the Financial Services Authority (FSA) for digital asset businesses. This includes complying with regulations related to Anti-Money Laundering and Counter-Terrorist Financing. Companies conducting ICOs must also provide accurate and transparent information to investors. |
| Taxes for cryptocurrency businesses in Seychelles |
corporate tax (3%) |
| VAT |
There is no specific regulation for VAT on goods and services related to cryptocurrencies in Seychelles. |
| Offshore cryptocurrency companies |
Offshore cryptocurrency companies in Seychelles must register using an appropriate unique company name. They should submit the required paperwork, pay registration fees, register for taxes, open a bank account, obtain a cryptocurrency license. |
| Bank account required for foreigners (YES/NO) |
YES, if you are o foreigner, you still must open a bank account in Seychelles. Our specialist in company formation in Seychelles can help you. |
| License validity |
1 year |
| Timeframe for obtaining the license (approx.) |
4 – 8 weeks |
| Advantages of owning a cryptocurrency license in Seychelles |
– simple and fast process, – relaxed laws and regulations, – no minimum share capital requirements, – low taxes, – privacy and security for business operations |
| Assistance with obtaining a cryptocurrency license in Seychelles | Our team can help you in opening a cryptocurrency company in Seychelles and obtaining the necessary license. |
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.
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.
Conditions for obtaining the Seychelles crypto license
It is estimated that around 20% of the total cryptocurrency exchange businesses have set up their operations in Seychelles, drawn here because although there isn’t a complete regulatory framework addressed for this industry, the country has created the Seychelles crypto license.
The license grants a certain level of trust for all the parties involved in cryptocurrency activities, therefore many businesses interested in obtaining must meet certain basic criteria. Among these, companies complete the process of company incorporation in Seychelles and have a physical place for doing business.
Another condition for obtaining the Seychelles cryptocurrency license is to register as a Virtual Asset Service Provider (VASP). The procedure is done through the Financial Services Authority (FSA). The VASP imposes further regulations concerning the compliance with Anti Money Laundering and the Combating the Financing of Terrorism (AML/CFT).
The latest AML/CFT regulations that are now applied in Seychelles were established with the assistance of the Financial Action Task Force (FATF), an international agency that creates standards which are recommended for implementation in countries across the world.
Please know that if a business is not incorporated in Seychelles and develops business operations related to cryptocurrency here, as per the latest regulations, it will be deemed as an unauthorized entity as the main conditions for investors are to open a company in Seychelles, be registered for operations here and licensed accordingly.
The current list of the companies that hold a Seychelles cryptocurrency license can be found on the website of the Financial Services Authority (FSA). Our consultants can also assist you in finding all the legal details concerning a company if you are interested in developing any business partnerships with it.
Our team of specialists can help you set up a Seychelles IBC and, considering that most of our clients are foreign investors, we have also created other useful services. For instance, you can rely on us if you are interested in immigration in Seychelles.
For professional immigration services, our immigration lawyers in Seychelles are ready to assist you in any matter (visas for investors, visas for their family members, long-term relocation matters – finding a property to rent and signing the required paperwork, as well as in any other issue concerning your relocation).
Our consultants can provide assistance on corporate taxation, personal taxation, the registration of a legal entity, such as the Seychelles offshore company, and can assist you in the most important matters after the registration of your business, such as tax compliance and reporting, accounting, payment of fees and other obligations a company can have (hiring employees, paying employment taxes).
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.
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.
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 regime 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. Many investors opted for company incorporation in Seychelles because the tax system is an attractive one. In the list below you can discover few matters concerning taxation:
- the income tax rate varies from 0% to 30% and it is below the Organization for Economic Cooperation and Development (OECD) median value, of 34.6% (measured for 2022);
- the corporate tax is charged at rates of 15% (for income up to SCR 1 million – $75,400) and 25% (for any income above SCR 1 million).
Additionally, we mention that the country does not charge the inheritance tax or the capital gains tax and these, along with many other advantages, have made Seychelles one of the top destinations for cryptocurrency businesses.
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 6 cryptocurrency exchanges operating from Seychelles;
- there are over 1,000 crypto owners in Seychelles.
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.
This 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.
If you need more information on how to create a Seychelles cryptocurrency exchange, please contact our local specialists.