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Seychelles’ Cabinet of Ministers has granted approval to a new virtual assets law, marking a significant step forward in the country’s regulatory framework for virtual assets (VA) and virtual assets services providers (VASP). The Vice President, Ahmed Afif, announced in a recent press conference that the law would now be presented to the National Assembly once it reconvenes.
The proposed regulatory framework has been designed to foster innovation and responsibly nurture the growth of the virtual assets industry in Seychelles. The groundwork for this law was laid earlier this month when the National Anti-Money Laundering and Countering the Financing of Terrorism Committee (NAC) conducted consultations to develop the proposed framework.
The NAC aims to finalize the regulations by the end of February, addressing potential financial crime risks associated with the misuse of virtual assets products and services. Among the proposed regulations is a requirement for enterprises dealing with virtual assets to have physical offices within Seychelles.
Vice President Afif emphasized that once the regulation is enforced, entities cannot claim to operate from Seychelles without the requisite license. Additionally, the regulations are structured to align with the Financial Action Task Force (FATF) Recommendation 15, specifically addressing risks associated with new technologies.
The law is anticipated to be completed by the end of February and will undergo a re-rating request for recommendation by March 15. The Eastern and Southern African Anti-Money Laundering and Countering the Financing of Terrorism (ESAAMLG) Task Force will consider the re-rating in September 2024.
Seychelles’ Financial Services Authority (FSA) has identified around 80 companies or entities that may fall within the VA and VASP category. The FSA foresees that these entities will be required to apply for a license under the new law once implemented.
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