The Seychelles National Anti-Money Laundering and the Financing of Terrorism Committee (NAC) has launched the consultation phase for the proposed framework for regulations of Virtual Assets (VA) and Virtual Assets Service Providers (VASP). The framework envisages a new VASP Act and amendments to the Anti Money Laundering and Countering the Financing of Terrorism Act, 2020 (AML/CFT Act), and is expected to be implemented by March 2024.
Based on the draft bill circulated by the Ministry of Finance for consultation purposes, the VASP Act shall provide for the licensing of VASPs and the model is similar to the existing framework regulating securities dealers in Seychelles. The Financial Services Authority (FSA) shall be the authority responsible for the authorisation and ongoing oversight of VA promoters and VASPs. Applicants seeking to be licensed under the VASP Act shall be required to establish a company under either the Seychelles Companies Act 1972 or the International Business Companies Act 2016. A licence shall be required for VA Wallet Providers, VA exchanges, VA Broking, VA Payment Providers and VA Investment Providers operating in or from Seychelles. Further, whilst parties who wish to promote Initial Coin Offerings or Non-Fungible Tokens in or from Seychelles shall also be required to apply for registration with the FSA.
Specific amendments are also being made to the AML/CFT Act to include VASPs as regulated entities, so that they shall be obliged to comply with the relevant provisions regarding customer due diligence, transaction monitoring, suspicious transaction reporting etc.
When introduced, the above framework shall certainly mark a pivotal change in regulation of VASPs in Seychelles and provide a foundation for ensuring the integrity of the virtual asset market in Seychelles.
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