Seychelles cracks down on unlicensed cryptocurrency services

The Financial Services Authority (FSA) of Seychelles has issued a stern warning to all cryptocurrency service providers and the public regarding the end of the transitional period under the Virtual Asset Service Providers Act, 2024. As of December 31, 2024, companies offering virtual asset services, including cryptocurrency exchanges, wallet providers, investment advice, and brokering, as well as those issuing Initial Coin Offerings (ICOs) or Non-Fungible Tokens (NFTs), must now be fully licensed or registered with the FSA to continue operations.

The FSA emphasized that companies failing to submit a complete application by the December 31 deadline are now prohibited from conducting any virtual asset-related activities. This includes Seychelles-based companies listed in Annex 1 of the FSA’s press release, which have been identified as operating without proper authorization. These companies are now deemed illegal and face severe penalties, including fines, imprisonment, or both. Additionally, they may be subject to striking off the register or court-mandated winding up.

The FSA is also collaborating with other entities not listed in Annex 1 that are in the process of winding down operations or relocating to other jurisdictions. The Authority urges consumers to exercise caution and verify whether the cryptocurrency services or products they use are authorized and regulated in the jurisdiction where the provider claims to operate.

Consumers engaging with unlicensed virtual asset service providers (VASPs) risk losing protections under Seychelles’ consumer protection laws. The FSA encourages the public to report suspected unauthorized or unlicensed cryptocurrency activities through a dedicated form available on its website