--- title: "SC Crypto Regulation Monitor | cryptoassets.gi" canonical: https://cryptoassets.gi/jurisdictions/sc-crypto-digital-asset-regulation/ source_html: /jurisdictions/seychelles/index.html description: "SC crypto asset regulation: 8 categories, 23 sourced findings, updated 2026-11-04. Licensing, token classification, stablecoins, tax treatment." generated_at: 2026-11-07T14:19:44Z content_sha256: 2cdaba7e1880130e0e9d24823287a0833a2cf98b42ba675d626849267576faaf generator: "fe-fleet/md-twin@1.0" --- # SC Crypto & Digital Asset Regulation schema crypto-v2.0.0 trajectory: not yet assessed in transition overlaps: [Sentinel (AML/CFT)](https://sentinel.gi/jurisdictions/seychelles/) Last updated 2026-11-04 · 8 categories · 23 sourced findings · 16 sources in the cumulative register Download report (PDF) Expand all Evidence re-verified: 2026-11-04 · Position last changed: 2026-11-04 · Record history & provenance ▾ Methodology & record provenance: Module confidence is derived from the underlying claims (source tier and primary excerpt retention), while statutory legal force is tracked independently. Review status: AI-synthesised · Tier-1/2 verified · As-of date: 2026-10-26 [Open in Co-Pilot ↗](/reports/?type=copilot&j=SEYCHELLES)[Build Report](/reports/?j=SEYCHELLES)[Compare](/compare/?j=SEYCHELLES) Framework posture In transition 8 of 9 modules populated · AI-synthesised · Tier-1/2 verified Lead supervisory authority FATF Primary statutory & supervisory perimeter Next milestone (> 2026-10-26) None scheduled No dated future statutory milestone on record Module coverage & confidence 8 / 9 modules assessed 0 Confirmed · 8 Probable · 0 Uncertain · 1 Not yet assessed 8 Categories 0 Moved this cycle 0 Key judgments 3 Open gaps 23 Findings 1 Tier-1 sources Confidence mix 8 unpopulated (sums to 8 rendered categories; click to filter) No categories moved this cycle. ## Jurisdiction lead brief Standing brief, as of 25 October 2026. #### Lead Signal The Financial Services Authority continued an active and escalating enforcement cycle against virtual-asset service providers operating in or from Seychelles this period, recording the withdrawal of a Virtual Asset Service Providers Act, 2024 licence application by Stratos Tech Limited, trading as Tradu, on 23 October 2026. This latest entry joins a sequence of enforcement outcomes stretching back through the year: the FSA's rejection of Bitfinity Ltd's application, trading as BitexBit, on 11 August 2026 after finding the company had operated as an unlicensed virtual asset service provider since before the Act existed, following an earlier cease-and-desist order dated 30 October 2025; and the FSA's public identification on 26 May 2026 of MX Global Ltd, the Seychelles-registered entity behind the MEXC exchange, as operating without the required licence. Taken together, these outcomes describe a regulator working methodically through a backlog of pre-existing virtual-asset operators that predate the Act's own commencement, rather than one managing a settled population of licensed entities. The Act's transitional provision required pre-existing providers to submit a complete licence or registration application by 31 December 2024; enforcement activity through 2026 against entities apparently non-compliant with that deadline suggests the FSA is still working through the consequences of that transition window well into the Act's second year of operation. #### Other Developments A new circular reinforced the licensing perimeter for Seychelles international business companies. FSA Circular No. 5 of 2026, dated 17 August 2026, reminds International Business Companies that conducting virtual-asset activity without the requisite licence remains prohibited under the International Business Companies Act, framed explicitly against the backdrop of the jurisdiction's upcoming Third Round Mutual Evaluation by the regional anti-money-laundering body. The circular functions as a signalling device as much as a substantive rule statement: it tells the IBC population that enforcement attention on unlicensed virtual-asset activity is intensifying ahead of external evaluation scrutiny. Implementing regulations remain in draft, with their practical requirements only partially visible. Commentary describing draft FSA regulations under the Virtual Asset Service Providers Act indicates these would require client-asset transfers to be explicitly authorised by the client and require segregation of client funds from licensee funds by the end of each business day. The finalisation and gazettement status of these draft regulations could not be confirmed this period, leaving open whether these custody-segregation protections are already operative or remain prospective. #### Cross-Monitor Connections The FSA's virtual-asset enforcement activity has a clear, if not fully resolved, connection to the jurisdiction's wider financial-integrity posture, since virtual-asset service providers are an obliged-entity category of increasing focus under current international anti-money-laundering standards, and the FSA's own Circular No. 5 of 2026 explicitly ties its licensing-perimeter reminder to the jurisdiction's preparation for external mutual evaluation. Whether this enforcement intensity reflects AML/CTF-specific concern about these particular unlicensed operators, or simply a licensing-compliance exercise unrelated to any underlying financial-crime finding, is not established on this period's evidence; the interpreter record for this jurisdiction did not return any findings specifically addressing the AML/CFT regime module for virtual-asset activity in Seychelles, which remains an open area rather than a confirmed null result. #### Outlook The FSA's enforcement cadence shows no sign of slowing, and further rejections, withdrawals or public identifications of unlicensed operators among the backlog of pre-existing providers remain plausible in subsequent periods. The more structurally significant open question is whether the draft implementing regulations, including the custody-segregation requirements for client assets, are finalised and gazetted, which would convert currently uncertain prudential protections into binding law. The jurisdiction's upcoming Third Round Mutual Evaluation is likely to remain the background driver shaping the pace and visibility of this enforcement activity through the remainder of 2026. Read full brief · 608 words Key regulatory facts for SC Regulatory Dimension SC Standing Position Jurisdiction SC (SC) Regulatory Scope Crypto & Digital Asset Regulation (8 modules, 23 sourced findings) Crypto Licensing Virtual asset services in Seychelles are governed by the Virtual Asset Service Providers Act, 2024, with the FSA as sole licensing/supervisory authority. Token Classification Seychelles has no comprehensive statutory taxonomy for crypto-assets. On-Chain Activity Regime The only on-chain activity with an identified statutory basis is tokenisation of securities via MERJ Dep./Upstream under the Securities Act 2007. Stablecoin Regime No Seychelles statute or FSA framework analogous to an asset-referenced-token/e-money-token regime (e.g. Primary Instruments Cited FATF, U.S. SEC EDGAR (filer disclosure), The Block, CoinDesk, U.S. Commodity Futures Trading Commission Last Confirmed / Updated 2026-11-04 (16 sources in cumulative register) 8 of 8 categories Signal Moved Judgment Gap Density Comfortable Compact Expand all sources Reset all Selections OR within a group, AND across groups. Press / to search. ### SC: C1 Crypto LicensingAmberEnacted in forceModule confidence: Probable▾ Virtual asset services in Seychelles are governed by the Virtual Asset Service Providers Act, 2024, with the FSA as sole licensing/supervisory authority. Within this cycle's window, the FSA rejected a VASP application and warned of a forged VASP licence, continuing an active enforcement pattern. Open gap — crypto-int-1 Gazetted text of the VASP Act's implementing regulations (capital, custody-segregation, prudential provisions) was not located this cycle; only secondary FSA/Appleby commentary summarises the draft. no under-indexing note recorded #### Crypto Licensing Seychelles licensing activity under the Virtual Asset Service Providers Act, 2024 continued to escalate through this period, with the Financial Services Authority recording a sequence of enforcement outcomes against both pre-existing and newly-assessed virtual-asset operators. The Act itself commenced on 1 September 2024 and carried a transitional provision requiring any pre-existing virtual-asset service provider to submit a complete licence or registration application by 31 December 2024; entities that failed to do so are, as a matter of the Act's own terms, in breach of its licensing requirement. The enforcement record through 2026 reads as the FSA progressively working through the population of operators caught by that transitional deadline. Three specific outcomes anchor this period's record. First, the FSA rejected a Virtual Asset Service Providers Act licence application from Bitfinity Ltd, trading as BitexBit, on 11 August 2026, on the finding that the company had been operating as a virtual asset service provider since before the Act's own enactment without the requisite licence; this followed an earlier cease-and-desist order issued against the company on 30 October 2025, indicating the FSA had already identified and acted against the entity's unlicensed conduct well before the formal rejection. Second, the FSA publicly identified MX Global Ltd, a Seychelles International Business Company holding registration number 238047, as the entity operating the MEXC exchange without the required licence, in a public statement dated 26 May 2026; naming a Seychelles-incorporated entity as standing behind a globally-recognised exchange brand is a materially more consequential disclosure than a routine licensing notice, since it directly links the jurisdiction's corporate registry to the operation of a major unlicensed trading platform. Third, and most recently, the FSA recorded on 23 October 2026 the withdrawal of a licence application from Stratos Tech Limited, trading as Tradu; a withdrawal is procedurally distinct from a rejection, since it reflects the applicant's own decision to discontinue the process rather than an adverse regulatory finding, though the public record does not disclose whether the withdrawal was voluntary in a commercial sense or made in anticipation of an unfavourable outcome. A parallel development reinforces the compliance perimeter for Seychelles-incorporated vehicles generally. FSA Circular No. 5 of 2026, dated 17 August 2026, reminds International Business Companies that virtual-asset activity conducted without a licence remains prohibited under section 5 of the International Business Companies Act, and explicitly situates this reminder ahead of the jurisdiction's Third Round Mutual Evaluation by the regional anti-money-laundering standard-setting body. The circular's framing, tying a licensing reminder directly to an upcoming external evaluation, suggests the FSA is using the IBC population itself, not just the virtual-asset licensing register, as a channel for reinforcing compliance expectations in the run-up to that evaluation. The gazetted text of the Act's implementing regulations, covering matters such as capital requirements, custody-segregation rules and other prudential provisions, was not located this period; the available description of these regulations rests on secondary commentary summarising a draft rather than the regulator's own published text. That gap is material because it means the precise, currently-binding prudential requirements facing a Seychelles-licensed virtual-asset service provider cannot be stated with confidence from a primary source at this time, even though the licensing obligation itself, and the criminal consequences of operating without a licence, rest on the clearly in-force statute. #### Outlook The trajectory for Seychelles' virtual-asset licensing regime points toward continued enforcement intensity rather than settling into a steady state, consistent with a regulator still working through a backlog of operators that predate the Act and have not yet come into compliance. The most significant open development to track is whether the Act's implementing regulations, including the custody-segregation requirements described in commentary, are finalised and gazetted, since that would resolve current uncertainty about the precise prudential obligations facing licensed operators. The jurisdiction's upcoming Third Round Mutual Evaluation is likely to continue shaping both the pace and the public visibility of FSA enforcement activity against unlicensed virtual-asset operators through the remainder of 2026. Read full sub-brief · 655 words No periodic updates recorded in this cycle Sources and findings (9) - T2[FATF](https://www.fatf-gafi.org/content/dam/fatf-gafi/recommendations/2025-Targeted-Upate-VA-VASPs.pdf.coredownload.pdf) — Per FATF's 2025 Targeted Update table (R.15.4 licensing/registration column), Seychelles is assessed as 'In progress' on passing/enacting legislation to license or register VASPs, i.e. at most a tabled draft or consultation stage, not an enacted licensing statute, as of the most recent (2025) assessment cycle; FATF's next update is expected in 2026. - T4[The Block](https://www.theblock.co/post/123534/crypto-exchange-huobi-migrating-spot-trading-business-gibraltar) — Incorporation under the International Business Companies Act 2016 (used by multiple global crypto exchanges to establish a Seychelles-domiciled entity) does not itself authorise or license virtual-asset exchange, broker, or custody activity; such entities operate, in the regulator's own characterisation and in industry accounts, as registered-but-unregulated for VASP-type activity absent a separate FSA licence. - T4[CoinDesk](https://www.coindesk.com/policy/2021/03/09/seychelles-regulator-issues-investor-alert-over-crypto-exchange-huobi-global) — In March 2021 the Seychelles FSA issued a public investor alert stating that an IBC named Huobi Global Limited, believed affiliated with the Huobi Global exchange, was operating in Seychelles despite never having been licensed, evidencing the FSA's practice of treating unlicensed virtual-asset activity via mere IBC registration as an enforcement/warning matter rather than a licensed activity. - T1[U.S. Commodity Futures Trading Commission](https://www.cftc.gov/PressRoom/PressReleases/8798-23) — The US CFTC filed a 2023 civil enforcement action against Expected Value Plus Ltd, a Seychelles-incorporated company (d/b/a Trade2Get/Coinbull/Cryptobravos), for a fraudulent digital-assets trading scheme; this is a foreign (US) regulator's action against a Seychelles-domiciled entity and does not reflect a Seychelles FSA enforcement precedent or penalty provision. - T1[Stratos Tech Limited (trading as Tradu)](https://www.mondaq.com/corporate-and-company-law/1831944/the-seychelles-financial-services-authority-ibc-restrictions-reminder-circular-no-5-of-2026-and-what-it-signals-for-seychelles-ibcs) — withdrew its VASP Act 2024 licence application, 28 October 2026 - T3[Virtual Asset Service Providers Act, 2024](https://charltonsquantum.com/seychelles-virtual-assets-regulation/) — Any person carrying on virtual asset service business in or from Seychelles must hold an FSA licence; covers exchange, transfer, custody/administration and investment-provider activity relating to virtual assets. - T1Virtual Asset Service Providers Act, 2024 — Operating without an FSA VASP licence is a criminal offence: individual fine up to SCR 2,250,000 or imprisonment up to 15 years or both; company fine up to SCR 5,250,000 per offence. - T1Virtual Asset Service Providers Act, 2024 — Issuance of an ICO or NFT in or from Seychelles requires registration with the FSA, separate from the VASP services licence. ### SC: C2 Token ClassificationRedEnacted in forceModule confidence: Probable▾ Seychelles has no comprehensive statutory taxonomy for crypto-assets. The only classification with a clear legal basis is for tokenised/digital securities, which fall within the existing securities-law perimeter (Securities Act 2007) when traded via MERJ Exchange/Upstream. Outside that perimeter (utility tokens, stablecoins, NFTs, asset-referenced tokens, e-money tokens), no dedicated classification statute was located; the only cross-cutting definition found is the AML/CFT Act 2020's broad 'property' definition (extended to cover virtual assets for AML purposes), which is an AML construct, not a market/token taxonomy, and is out of scope for this module per the AML/CFT subscription. C2 · Token Classification — Full Module Record 0 sub-modules · 180 words · 3 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login) [View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### SC: C3 On-Chain Activity RegimeRedEnacted in forceModule confidence: Probable▾ The only on-chain activity with an identified statutory basis is tokenisation of securities via MERJ Dep./Upstream under the Securities Act 2007. No Seychelles-specific statute or FSA guidance was located for staking, DeFi lending, DEX operation, mining, node operation, or validator activity; these remain unaddressed gaps pending any future VASP framework. C3 · On-Chain Activity — Full Module Record 0 sub-modules · 180 words · 1 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### SC: C4 Stablecoin RegimeRedEnacted in forceModule confidence: Probable▾ No Seychelles statute or FSA framework analogous to an asset-referenced-token/e-money-token regime (e.g. MiCA Title III/IV) was identified. No evidence of a domestic stablecoin issuance-authorisation, reserve, or redemption-right regime was found in the sources reviewed. C4 · Stablecoins & EMTs — Full Module Record 0 sub-modules · 180 words · 2 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### SC: C5 Consumer ProtectionRedEnacted in forceModule confidence: Probable▾ No crypto-specific consumer-protection statute (marketing/promotions, custody segregation, market abuse, order handling/conflicts, suitability, or complaint-handling rules) was identified for virtual-asset activity in Seychelles. The FSA's demonstrated practice of issuing public investor alerts against unlicensed crypto entities (e.g. the 2021 Huobi-linked IBC alert) functions as an informal, supervisory-practice-level risk-warning mechanism rather than a codified disclosure rule. Custody/depository rules exist only for tokenised securities handled via MERJ Dep. under the Securities Act 2007, not for VASP-type custody generally. Absence reason not determinable No sub-brief exists and the JID records no gap or review marker explaining why. The renderer will not invent a reason. No periodic updates recorded in this cycle Sources and findings (5) - T4[CoinDesk](https://www.coindesk.com/policy/2021/03/09/seychelles-regulator-issues-investor-alert-over-crypto-exchange-huobi-global) — The Seychelles FSA's practice of publishing public investor alerts (e.g. the March 2021 alert naming a Huobi-linked IBC as unlicensed) operates as a supervisory expectation/warning mechanism rather than a statutory risk-disclosure obligation on crypto firms. - T1VASP custody applicant — A VASP custody applicant must document segregation of its assets from client assets, safeguarding of client ownership rights, and mitigation of commingling risk. ### SC: C6 Tax TreatmentAmberEnacted in forceModule confidence: Probable▾ Seychelles operates a broadly territorial tax system. Company disclosures filed with the US SEC state that Seychelles-incorporated entities are generally not subject to Seychelles tax on income derived outside Seychelles and that no Seychelles dividend withholding tax applies to such entities; where Seychelles-sourced business profits do arise, illustrative filings report income tax at a rate of up to 25%. No Seychelles-specific statute, FSA guidance, or Revenue Commission guidance on the tax treatment of crypto-asset gains, crypto income, VAT/GST on crypto transactions, or crypto-specific reporting obligations was independently located; the territorial-system claims below derive from company tax-note disclosures rather than the underlying Seychelles Business Tax Act/Income Tax Act text itself. C6 · Tax Treatment — Full Module Record 0 sub-modules · 180 words · 2 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Amber), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### SC: C7 Cross-Border TransferRedEnacted in forceModule confidence: Probable▾ No crypto-specific cross-border transfer, passporting, or reverse-solicitation regime was identified for Seychelles. In practice, the International Business Companies Act 2016 is used by multiple global crypto exchanges (e.g. Bitget) to register a Seychelles entity serving customers worldwide without any crypto-specific outbound restriction, reporting threshold, or passporting mechanism being applied by the Seychelles FSA. C7 · Cross-Border & Travel Rule — Full Module Record 0 sub-modules · 180 words · 1 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Red), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/) ### SC: C8 AML/CFT RegimeAmberEnacted in forceModule confidence: Probable▾ Crypto subscribes to the shared financial-integrity module (FIM aml_ctf) for AML/CFT findings; no aml_cft_regime claims are produced in this baseline. For disambiguation only: Seychelles amended its AML/CFT Act 2020 (via Act 7 of 2021) to broaden its 'property'/'funds' definitions to cover virtual assets, and the Seychelles Financial Intelligence Unit (FIU) is the AML/CFT supervisor of obliged entities; this context is carried here only to prevent miscitation, not as a substantive claim set. C8 · AML/CFT Regime — Full Module Record 0 sub-modules · 180 words · 4 traced claims · Re-verified 2026-11-04 The decision headline, regulatory posture (Amber), primary framework, and supervisory authority above are open on the Free Explore layer. Register free with a business email for 3 full-record passes a month , or unlock all 170 jurisdictions with Pro (£39/mo · £99/mo all products) or Firm (£199/mo · £449/mo all products) . [Unlock with Free Pass / Sign In](https://a-i.gi/auth/login)[View Pro & Firm Plans (£39 / £199)](https://a-i.gi/licensing/#plans)[View Open Exemplar (Gibraltar)](/jurisdictions/gi/)