The Financial Services Authority (FSA) wishes to advise the public as to the circulation of a post from a Facebook account alleging to be Mr Wavel Ramkalawan, the President of the Republic of Seychelles, in respect to the launching of a ‘National Coin’ on the Solana blockchain.

Persons are advised that this post is a scam and the Government of Seychelles has not issued or caused to be issued a ‘National Coin’.

Consumers are reminded to always check whether the VASP or VA products being offered to them are actually licensed/authorized and regulated in the jurisdiction from which they claim to operate. To note, the FSA publishes upon its website all persons authorised or licensed to offer non-bank financial services, including virtual asset services as well as the registration of Initial Coin Offerings or Non-Fungible Tokens.

The Seychelles continues to monitor activities within this domain and the public is encouraged to notify the FSA where they may feel they are engaging with VASPs that are operating without the proper licence or authorisation by making use of the form available on the FSA website at the following link, https://fsaseychelles.sc/vasp/report-suspected-unauthorized-or-unlicensed-va-vasp-activity. 

For any further enquiries, please contact the FSA on vass@fsaseychelles.sc.  

Financial Services Authority

September 04^th, 2024

Members of the Financial Stability Committee (FSC) from the Financial Services Authority (FSA) and the Central Bank of Seychelles (CBS) conducted a press conference on September 2^nd, 2024, with the aim of providing an overview of the FSC's meeting of the 12^th and 20^th of August, 2024.

Following the press conference and concerns raised by some investors the FSA hereby reassures members of the public that the bond default mentioned within the press conference does not relate to any government issued securities or the Cable and Wireless (Seychelles) Limited bond.

The FSA remains committed to appropriately inform and educate the general public of any matters relating to the non-bank financial services business.

Financial Services Authority

The Financial Services Authority hereby gives notice to the general public, pursuant to section 28(2)(c) of the Financial Services Authority Act, 2013, that the general insurance licence held by Falcon Insurance Limited has been revoked pursuant to section 110 (1) of the Insurance Act, 2008, effective February 8^th, 2024.

Therefore, note that effective February 8^th, 2024, Falcon Insurance Limited no longer holds the above-mentioned licence.

Financial Services Authority

What are Virtual Assets?

Virtual assets more commonly referred to as crypto assets/ crypto currencies, refer to any digital representation of value that can be digitally traded, transferred or used for payment, but excluding digital representation of fiat currencies, securities, and other financial assets.

What are Contracts for Differences (“CFD”)?

CFD is a leveraged product which is traded over the counter. This can be for a long or short position contract, where the person investing and the dealer (the person making the offering) agree to exchange the difference in the open and closing prices of the underlying asset, with no transfer of ownership of the underlying asset, which in this instance would be the Virtual Asset.
These assets can range from, but not limited to, stocks, indices, foreign exchange, commodities, and now increasingly virtual assets.

What are CFDs in virtual assets?
CFDs in virtual assets allow investors to speculate on a change of price in a virtual asset for example Bitcoin or Ethereum.
It is important to keep in mind that virtual assets may not be issued or backed by a central bank or government, and are subject to significant price volatility which can lead to significant losses which may exceed the amount invested.

What are the risks?
Common risks associated include:
1. Price volatility:- The value of virtual assets being extremely volatile, render the value of the CFD volatile in turn. Same may be subject to rapid changes stemming from global events or market changes.
2. Charged and funding costs:- Charges associated with these types of CFDs may be higher than other CFD products. Same may vary between firms and should be taken into consideration on the likelihood of a profit, whether significant or not, being made.
3. Price transparency:- Differing from fiat currencies, crypto and virtual assets in general, experience significant variations which is used to determine the value of the CFD position. The shifting nature of VA may result in a CFD offering which is not reflective of the actual value of the underlying virtual asset, at the time the contract is entered.

The Financial Services Authority reminds the public, actual and potential investors to take due care when engaging in investment of any kind; and reminds all persons, to consider whether these products are right for you before entering into any trades.