Seychelles Crypto License
The Seychelles is a favorable jurisdiction for obtaining a crypto license.
The Seychelles Crypto License is a legal structure that allows firms to operate in the cryptocurrency industry. This license is issued by the Seychelles Financial Services Authority (FSA). It provides an administrative structure for crypto exchanges, wallet providers, and other crypto-related firms to operate securely and transparently.
The crypto license in Seychelles has gained popularity among firms in the crypto industry due to its favorable tax regime and flexible administering requirements. This has made the country desirable for crypto companies looking to establish a presence in an offshore jurisdiction.
Obtaining a crypto license in Seychelles offers a range of benefits for companies in the crypto industry. The FSA provides an administering structure that enables firms to operate securely and transparently.
Here are some key benefits of obtaining a Seychelles Crypto License:
- Favorable Tax Regime;
- Flexible administering Requirements;
- Stable Political and Economic Environment;
- Skilled Workforce;
- Excellent Telecommunications Infrastructure.
Obtaining a crypto license requires meeting specific conditions set by the FSA. It regulates and supervises commercial services activities in the country, including cryptocurrency-related firms.
In order to obtain a cryptocurrency license in Seychelles, firms must have a legal entity incorporated there. The firm must have a minimum of two directors and a registered office in Seychelles. Additionally, the firm must have a physical presence in the country, including a local representative.
Compliance with AML/CFT Regulations
Firms seeking a cryptocurrency license in this country must concede with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations. The company must have a robust AML/CFT policy and procedure, including client due diligence (CDD), enhanced due diligence (EDD), and transaction monitoring.
Technical and Operational Standards
The FSA requires firms seeking crypto permission to meet specific technical and operational standards. The company must have appropriate security measures to safeguard customer assets and data. Moreover, the company must have disaster recovery and business continuity plans.
Firms seeking crypto permission must demonstrate financial stability. The party must have the lowest capital requirement of USD 50,000, which must always be maintained. Besides, the firm must have adequate insurance coverage, including professional indemnity insurance, cyber liability insurance, and general liability insurance.
Fit and Proper Criteria
The FSA requires that the directors and key staff of the firm meet the fit and proper criteria. It includes demonstrating integrity, competency, and financial soundness. Moreover, it may conduct background checks on directors and key personnel before granting a cryptocurrency license.
Registration of a crypto company in Seychelles
- Choose a Local Agent: The first step in registering a crypto license firm in Seychelles is to choose a local agent who will act as a liaison between the company and the government. The local agent must be a Seychelles resident or a Seychelles-registered company.
- Reserve a Company Name: The next step is to reserve a business name with the Seychelles Registrar of Companies. The name should be unique and not already registered with the Registrar.
- Prepare the Incorporation Documents: The next step is to prepare the incorporation papers once the company name is reserved. The papers include the memorandum and articles of association, which outline the company’s structure, objectives, and governing rules.
- Register with the Registrar of Companies: The incorporation papers must be filed with the Registrar of Companies, along with the application for registration. The Registrar will review the application and, upon approval, issue a certificate of incorporation.
- Apply for a Cryptocurrency License: Once the firm is incorporated, the next step is to apply for crypto permission with the FCA. The application must include a detailed business plan, technical and operational papers, financial statements, and insurance papers. Additionally, the application must demonstrate compliance with AML/CFT rules and technical and operational standards.
- Submit the Application and Pay the License Fee: After preparing the application, it must be submitted to the FCA. It will review the application and may request additional information or documentation as needed. The review process typically takes between 4-8 weeks. Once the application is approved, the company must pay the permit fee of USD 50,000.
- Obtain the License: After paying the license fee, the FSA will issue the cryptocurrency license. The permission is valid for one year and must be renewed annually. Additionally, the company must comply with the ongoing administering conditions set by the FSA.
Cryptocurrency license Legislation in Seychelles
The country has implemented rules to regulate cryptocurrency-related actions in the country. The FSA oversees and regulates commercial services activities in the country, including cryptocurrency-related firms. However, the legal structure for regulating cryptocurrencies is still in its early stages, and there are currently no specific regulations governing initial coin offerings (ICOs).
The Cryptocurrency Regulation Act was introduced in 2018 to regulate crypto-related activities in this country. The act provides a structure for regulating firms engaged in cryptocurrency-related activities, including exchanges, wallet providers, and other cryptocurrency-related firms. The act requires such firms to comply with AML/CFT regulations and technical and operational standards. The act also provides for licensing such firms, which is required for them to operate legally.
However, despite the existence of the Cryptocurrency Regulation Act, the legal structure for regulating cryptocurrencies is still in its early stages. The FSA is still developing regulations and guidelines for cryptocurrency-related options in the country, and the administering regime is still evolving.
Additionally, ICOs are not currently regulated in this country. While the FSA has indicated that it is studying the regulation of ICOs, there are currently no specific regulations governing the conduct of ICOs. This means firms looking to conduct ICOs in Seychelles will need legal advice on the applicable administering conditions and compliance measures.
Taxation in Seychelles
The country has a highly favorable tax regime for firms, making it an attractive location for firms seeking to operate tax-efficiently. The country has no capital gains tax, withholding tax, inheritance tax, or corporate tax on foreign-sourced income. But still, there are several taxes:
- Corporate Tax. Corporate Tax is a levied impost on the net income of corporations and business establishments situated within the region of Seychelles. The extant Corporate Tax tariff in Seychelles stands at 25%. While it is pertinent to note that the tax rate is universally applicable to all companies, irrespective of whether they are residents or non-residents, the tax rate in and of itself may vary depending on factors such as a company’s magnitude, industry, and degree of financial input.
- Personal Income Tax. Personal Income Tax refers to an assessment on an individual’s earnings, which encompasses salaries, wages, and other remuneration modes. The ratio of Personal Income Tax in Seychelles ranges from 0% to 30% contingent on the magnitude of the individual’s monetary earnings. It is noteworthy that the tax rates and divisions undergo yearly changes based on inflationary dynamics.
- Value-Added Tax (VAT). Value-Added Tax, commonly referred to as VAT, is a type of duty that is enforced on the value included during every phase of product production or service distribution. The standard rate of VAT currently applicable in Seychelles is pegged at 15%, and it is obligatory for most goods and services. Nonetheless, there exist certain commodities and services that are immune from VAT or receive a zero-rated tariff, such as basic foodstuffs, healthcare, and educational facilities.
- Social Security Contributions. Social Security Contributions denote the monetary disbursements affected by both workers and employers towards the Seychelles Pension Fund. The fund’s primary function is to endow qualified individuals with remuneration options for retirement, disability, and survivor contingencies. The standard Social Security Contribution tariff in Seychelles is calculated at 25% of an employee’s gross remuneration, with the employer and employee making contributions of 15% and 10%, respectively.
FAQ about Crypto license in the Seychelles
Is cryptocurrency regulated in Seychelles?
- Cryptocurrency is regulated under the Cryptocurrency Regulation Act. However, the legal structure is still evolving, and ICOs are not currently regulated. The country offers a favorable tax regime for firms, including no corporate tax on foreign-sourced income.
Do the Seychelles support cryptocurrencies?
- The country supports cryptocurrencies and has enforced rules to regulate cryptocurrency-related activities in the country. The FCA oversees and regulates commercial services activities in the country, including cryptocurrency-related firms. Additionally, the country has a favorable tax regime for firms.
How to get a crypto license in Seychelles?
- To get cryptocurrency permission, firms must meet the conditions set by the FCA. The process involves incorporating a firm in Seychelles, preparing the application, submitting the application to the FSA, paying the right fee, and acquiring permission. Seychelles offers a favorable tax regime for firms.
What is the best crypto exchange in Seychelles?
- There are a few respected crypto exchanges. They include BitMEX, Huobi, and OKEx.
What Seychelles crypto exchanges are available?
- Several reputable crypto exchanges are registered in the country, including BitMEX, Huobi, and OKEx. These exchanges offer a variety of trading pairs, advanced trading features, and robust security measures to protect user assets.
Is Cryptocurrency Legal in Seychelles?
- Crypto is legal. The country has executed lawmaking to regulate cryptocurrency-related actions under the Cryptocurrency Regulation Act. The FCA oversees and regulates commercial services activities, including cryptocurrency-related firms.