Regulatory Updates

The Financial Services Authority (FSA) hereby issues this Public statement pursuant section 28(2) of the Financial Services Authorities Act, 2013 to provide clarity to the public, market participants, and all stakeholders regarding the regulatory status of stablecoins under the Virtual Asset Service Providers (VASP) Act.

1. Purpose of this Notice

This notice aims to:

• Inform the public of the current regulatory position and treatment in respect of stablecoins.
• Address enquiries received from industry participants regarding whether stablecoins are considered “virtual assets” for the purposes of the VASP Act.
• Ensure transparency and promote compliance with existing legal requirements.

2. Definition of Virtual Assets Under the VASP Act

For the purposes of the VASP Act, a virtual asset is defined as:

“means a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes and does not include digital representation of fiat currencies, securities and other financial assets”

The Act regulates persons engaged in virtual asset services, including activities such as exchange, transfer, custody and administration of virtual assets for and/ or on behalf of persons. It further registers the issuances of initial coin offerings and non-fungible tokens as respectively defined under the VASP Act.

3. Treatment of stablecoins under the VASP Act

After an assessment of stablecoins as a category of digital instruments, the Authority hereby confirms the following regulatory position:

“Stablecoins, in their current form and usage within the domestic market, are not classified as “virtual
assets” under the VASP Act and therefore do not fall within the scope of VASP licensing or regulatory
requirements.”

The position is based on the following considerations:

3.1. Nature and Structure of Stablecoins

Stablecoins are typically pegged to a reference asset (e.g., fiat currency, commodities, or other stable financial instruments). Their purpose is primarily value preservation, rather than functioning as a speculative digital asset.

3.2. Exclusion Based on Functional Characteristics

Under the VASP Act, instruments that function similarly to fiat representations, closed-loop payment instruments, or redeemable stored-value arrangements do not meet the Act’s definition of virtual assets.

Most stablecoins currently observed within the market:

• Operate as digital representations of fiat value,
• Are redeemable for an equivalent amount of underlying assets, and
• Do not carry the characteristics of open-market virtual assets such as price volatility or speculative trading value.

Therefore, these instruments are excluded from the Acts’s scope.

4. VASP activities in lieu of stablecoins.

In regards to VASP-related services in respect to stablecoins such as –

• Exchanges,
• Brokering/dealers,
• Hold/custody
• Investment advice.

would require a license under the VASP Act depending on the scope of the activities being undertaken.

5. Important caveats and ongoing monitoring

While stablecoins issuances are not currently regulated under the VASP Act, the Authority emphasizes caution based on the risks to consumers and investors as exemplified below:

5.1. Counterparty risk associated with the issuer.

Such refers to the risk of the stablecoin issuers being unable or unwilling to meet its obligations to users. Unlike cash or other traditional fiat held in a bank account that is protected by the bank, stablecoin holders rely entirely on the financial health and integrity of the issuer. If the issuer experiences financial distress, mismanages funds, becomes insolvent, or is subject to fraud or legal action, users may be unable to redeem their stablecoins at face value, potentially resulting in partial or total loss of their holdings.

5.2. Lack of transparency on backing reserves.

Such arises when stablecoin issuers do not provide clear, timely, or independently verified information about the assets supporting the stablecoin’s value. In some cases, reserves may consist of a mix of cash, short-term debt, or other financial instruments rather than fully liquid assets.

5.3. Redemption delays or failures.

Such refers to the occurrence where users are unable to promptly convert stablecoins back into fiat currency. These issues may arise due to liquidity constraints, operational bottlenecks, regulatory restrictions, or issuer-imposed limits during periods of high demand. Even if a stablecoin nominally maintains its peg, delays or suspensions in redemption can prevent users from accessing their funds when needed, particularly during times of market volatility.

5.4. Exposure to foreign regulatory decisions.

Such refers to the fact that many stablecoin issuers are regulated in jurisdictions outside the user’s home country. Regulatory actions taken by foreign authorities, such as license revocations, asset freezes, enforcement actions, or changes in legal frameworks can materially affect the issuer’s ability to operate or honor redemptions. Users may have limited legal recourse or consumer protection if such actions occur, especially when laws and enforcement mechanisms differ across jurisdictions.

5.5. Cybersecurity and operational risks.

Such refers to the risks stemming from the heavy reliance of stablecoinsrelated activities on digital infrastructure, including smart contracts, blockchain networks and custodial systems. Cyberattacks, software vulnerabilities, system outages, or internal control failures can result in theft, loss of access, or prolonged service disruptions. Even when backing reserves are adequate, such technical or operational failures may compromise users’ ability to use, transfer, or redeem
their stablecoins effectively. Members of the public are urged to exercise caution when purchasing, holding, or transacting with stablecoins.

6. Guidance for business and the public

Members of the public who are unsure whether their activities fall under the VASP Act or any other regulatory framework are encouraged to:

• Seek guidance from the Authority,
• Request formal classification or regulatory interpretation where necessary, and
• Ensure that their activities comply with all applicable legal requirements.

FINANCIAL SERVICES AUTHORITY

The Financial Services Authority hereby issues this public statement, in line with section 28 of the Financial Services Authority Act, 2013 to notify the public that the Virtual Asset Service Providers Application submitted by Angel Venture Partners Limited trading as Quickex for approval under the Virtual Asset Service Providers Act, 2024 (“the Act”), has been rejected as of the 14^th February 2025.

The company was formally instructed to cease all operations immediately or migrate its services out of the jurisdiction.

The public is hereby advised that Angel Venture Partners Limited remains incorporated in Seychelles; however, it has caused to migrate, any and all virtual asset services as defined under the First Schedule of the Act outside of the jurisdiction. The company’s activities are limited to the holding and management of intellectual property and any virtual asset-related services associated with the platform are undertaken by a separate legal entity incorporated outside of Seychelles.

For further enquiries, members of the public may contact the Authority at vass@fsaseychelles.sc.

The Financial Services Authority (“FSA/Authority”) hereby gives notice to the general public, pursuant Section 4(1)(m) of the Financial Services Authority Act, 2013 (“FSA Act”), the accreditation of Mr. Christopher Albert Drummond as the Representative of Pepperstone International Markets Limited has been terminated, effective as of February 18th, 2026.

All members of the general public are advised that this notice is issued solely for informational and public awareness purposes. It does not constitute, and shall not be construed as, an enforcement action, or adverse determination of any nature against any person or entity referred herein.

The Financial Services Authority (“FSA/Authority”) hereby gives notice to the general public, pursuant Section 4(1)(m) of the Financial Services Authority Act, 2013 (“FSA Act”), the accreditation of Mr. Jason William Gibson as the Representative of Quox Capital Ltd has been terminated, effective as of February 15th, 2026.

All members of the general public are advised that this notice is issued solely for informational and public awareness purposes. It does not constitute, and shall not be construed as, an enforcement action, or adverse determination of any nature against any person or entity referred herein.

The Financial Services Authority (“FSA/Authority”) hereby gives notice to the general public, pursuant Section 4(1)(m) of the Financial Services Authority Act, 2013 (“FSA Act”), the accreditation of Mr.  Samson Nganga as the Representative of FxFair Ltd has been terminated, effective as of November 6th, 2025.

All members of the general public are advised that this notice is issued solely for informational and public awareness purposes. It does not constitute, and shall not be construed as, an enforcement action, or adverse determination of any nature against any person or entity referred herein.

This notice is issued by the Financial Services Authority of Seychelles (“FSA”) drawing attention to the websites https://pc.taurerxus.com/#/, https://taureanpal.com/, https://taurexgy.com/ and the fact that these websites are not linked to TAUREX GLOBAL LIMITED, an entity licensed and regulated by the FSA. 

Furthermore, the FSA Seychelles urges investors and members of the public to exercise adequate research and evaluation on an entity, service providers, and representatives prior to conducting business and/or performing any transactions involving money exchanges or exchanges of personal details. The FSA also reminds the public that the Authority is not responsible should persons continue or maintain client relationship, or uses services provided with or by the aforementioned website.

This notice is issued by the Financial Services Authority of Seychelles (“FSA”) drawing attention to the website https://www.xt.com and the fact that the aforementioned website is not linked to any entity licensed or regulated by the FSA in any capacity. 

The Authority urges investors and members of the general public to conduct adequate research on an entity, service provider(s), and representative prior to engaging in any business activities and/or performing any transactions involving money exchanges or exchanges of personal details. The FSA reminds the public that the Authority shall not be liable should persons continue to engage or maintain client relationship or make use of services provided with or by the aforementioned website.

The Financial Services Authority of Seychelles (“FSA”) is issuing a notice to its investors, licensees and members of the general public to the website "https://fluxorixs.com". The Authority takes note that the website refers to a company named Tesla stock investment claiming to be registered in Seychelles with registration number 709718501 and licensed by the Financial Services Authority. Please be advised that the entity is not known, does not hold a valid license nor is it regulated by the FSA in any capacity and the website is not linked to any entity licensed or regulated by the FSA in any capacity.

The Authority urges investors and members of the general public to conduct adequate research on an entity, service provider(s), and representative prior to engaging in any business activities and/or performing any transactions involving money exchanges or exchanges of personal details. The FSA reminds the public that the Authority shall not be liable should persons continue to engage or maintain client relationship, or make use of services provided with or by the aforementioned website.

The Financial Services Authority (“FSA/Authority”) hereby gives notice to the general public, pursuant to Section 4(1)(m) of the Financial Services Authority Act, 2013 (“FSA Act”), the accreditation of Mr. Paris Evros Stylianides (SDR247) as Securities Dealer's Representative of BLUEPINE LTD has been terminated, effective as of September 3rd, 2025.

All members of the general public are advised that this notice is issued solely for informational and public awareness purposes. It does not constitute, and shall not be construed as, an enforcement action, or adverse determination of any nature against any person or entity referred herein.

The Financial Services Authority (“FSA/Authority”) hereby gives notice to the general public, pursuant to Section 4(1)(m) of the Financial Services Authority Act, 2013 (“FSA Act”), the accreditation of Mr. Andreas Christofi (SDR191) as Securities Dealer's Representative of HF Markets (Seychelles) Ltd has been terminated, effective as of March 24th, 2026.

All members of the general public are advised that this notice is issued solely for informational and public awareness purposes. It does not constitute, and shall not be construed as, an enforcement action, or adverse determination of any nature against any person or entity referred herein.