Following the commencement of the Virtual Asset Service Providers Act, 2024 (“VASP Act”) and its accompanying Regulations, the Financial Services Authority (“Authority”) issued a Circular to inform investors, entities incorporated in Seychelles and the general public that are operating as virtual asset service providers (“VASPs”) or issuing initial coin offering (ICO) or non-fungible token (NFT), regarding the transitional period granted under the VASP Act for the submission of an application for a licence or an application for registration, respectively.
In accordance with section 42 of the VASP Act, a person conducting virtual asset services or issuing an ICO or NFT on the 1st of September 2024 is permitted to continue to carry out such business activities, provided that a complete licence or registration application is submitted to the Authority prior to the expiration of the transitional period, which concludes on the 31st of December 2024.
The public is informed that failure to submit a complete application by the 31st of December 2024 will result in a breach of the VASP Act, for which a person may be subject to such enforcement action inclusive of but not limited to:
- The striking of the name of the company off of the register (this applies to both companies incorporated under the Companies Act, 1972 and the International Business Companies Act, 2016);
- For companies, a fine not exceeding SCR 5,250,000;
- For individuals, a fine not exceeding SCR 2,250,000 or imprisonment not exceeding 15 years or both.
Entities registered and/or incorporated in the Seychelles and operating as a VASP or issuing ICO or NFT are reminded that a mere registration and/or incorporation under a statutory legislation does not equate to the granting of a licence or an authorisation. It is therefore essential for every Seychelles registered and/or incorporated entity that are providing virtual asset services or issuing ICO or NFT to clearly differentiate their registration and/or incorporation status when soliciting clients, advertising their services or communicating in any manner. Companies registered and/or incorporated in the Seychelles may publicly disclose the submission of their application to the Authority only after the company has received confirmation as to the application having been accepted and therefore deemed complete.
Please be informed that any persons who were not operating as a VASP or issuing an ICO or NFT on the 1st of September 2024 (i.e. commencement date of the VASP Act) must first apply and obtain the required licence or authorisation prior to the offering of any virtual asset services or the issuance of any ICO or NFT.
Persons operating as a VASP and/or issuing an ICO or NFT on the 1st of September 2024 (these include (i) persons which started operating as a VASP on the 1st of September 2024 and (ii) persons which started operating as a VASP prior to the 1st of September 2024 and were still operating as a VASP on the 1st of September 2024) are reminded that, effective 1st of January 2025, any person that has failed to submit a complete application to the Authority by the 31st of December 2024 must cease operations immediately. Failure to do so will constitute a breach of section 5 or 27 of the VASP Act and may lead to the imposition of enforcement actions, as previously outlined.