This press release is being issued following a review undertaken by the Financial Services Authority (“FSA”) of the licensees under its purview who are offering Virtual Assets (“VA”) or are acting as Virtual Asset Service Providers (VASP).
In 2022, the Seychelles undertook a National Risk Assessment (“NRA”), where certain licensees, duly licenced under the Securities Act, 2007, have been found to be engaging, in one way, shape or form, as a VASP or in VA related activities.
The FSA will like to reiterate that the Seychelles presently, does not licence or regulate any persons for the purpose of offering or conducting businesses related to VA or VA services such as:
(a) Exchange between virtual assets and fiat currencies
(b) Exchange between one or more forms of virtual assets
(c) Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets (i.e. wallet custodial services), or
(d) Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset (i.e. an Initial Coin Offering or ICO).
The FSA is working with the licensees identified to ensure that the proper disclaimers are featured on their websites so as to avoid any potential misrepresentations that the licenses they currently hold, covers VA related services, being a permissible activity under a Seychelles regulatory regime.
The Seychelles is working towards the introduction of the necessary legislative framework to allow for the licensing and effective regulation of entities opting to be licensed as a VASP.
In the interim, members of the public are advised to ensure that, when engaging in VA related offerings, that the entity with whom the transaction is made is authorized or licensed to provide such services by an authority in the jurisdiction from which they claim to operate, so as to ensure a degree of consumer protection.
Members of the public and investors alike, should also be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.
Financial Services Authority