Crypto license in Seychelles

Cost Breakdown for a Seychelles Crypto License

One of the main advantages of the Seychelles is the relatively low cost of obtaining a crypto license, especially when compared with European jurisdictions. In general, costs can be divided into three main categories: government fees, consultant services, and ongoing operational expenses.

Government Fees and Licensing Payments

During the submission of an application to the Financial Services Authority of the Seychelles (FSA), a one-time non-refundable fee in the amount of 5,000 euros is paid.

After the approval of the application, the company must pay:

• basic annual licensing fee — 5,000 euros;
• additional fee for each type of activity covered by the license.

The size of annual payments depends on the direction of activity:

• Crypto exchange (Exchange) — 25,000 euros per year;
• Crypto wallet provider (Wallet Provider) — 20,000 euros;
• Crypto broker (Broking) — 10,000 euros;
• Investment provider (Investment Provider) — 5,000 euros.

For example, if a company plans to operate simultaneously as an exchange and a crypto wallet provider, its annual licensing payments will amount to:

5,000 € (basic license) + 25,000 € + 20,000 € = 50,000 € per year.

In the first year, the amount is calculated proportionally depending on the quarter in which the license was issued. All payments are made to the FSA account during the submission of the application and subsequently every year before the renewal of the license.

Company Registration

Before submitting the application, it is necessary to register a local company in the form of an International Business Company (IBC).

A standard registration package through a licensed agent costs about 1,300 euros. Usually, this amount includes:

• government registration fees;
• services of a registered agent and a legal address for the first year;
• preparation of corporate documents and their apostillation.

If a corporate provider handles the formation, they fully accompany the process of creating the company.

Office and Local Presence

One of the licensing requirements is the presence of a real economic presence (substance) in the Seychelles.

Most companies rent a small office on the island of Mahé or use serviced offices provided by specialized corporate providers.

The cost of rent depends on the location and area and usually amounts to from a few hundred to several thousand euros per month.

It is also necessary to take into account expenses for:

• a local director;
• employees responsible for compliance or administrative functions.

Local directors, as a rule, receive a monthly remuneration, so these expenses are regular and must be budget-allocated in the company’s budget.

Services of Legal and Corporate Consultants

Due to the complexity of the procedure, most applicants use the services of specialized legal companies.

Such consultants:

• prepare the package of documents;
• develop internal policies and procedures;
• interact with the regulator;
• accompany the process of obtaining the license until its completion.

Companies operating on a “turnkey” principle offer comprehensive accompaniment. For example, a full package of services can cost around 20,520 euros. This amount usually includes:

• company registration;
• preparation of documents;
• submission of the application to the FSA;
• assistance with opening a corporate account.

The direct preparation of the license application is valued at approximately 15,425 euros.

Theoretically, it is possible to obtain a license independently, however, experienced consultants significantly increase the chances of successfully passing the review and help to quickly respond to requests from the regulator.

Banking Services and Accounting

To conduct activity, a company needs a corporate bank account or an account in a payment institution.

Opening an account directly in Seychelles banks can be difficult, so many crypto companies use the services of international banks or electronic payment institutions (EMIs).

Accompaniment of opening a corporate account usually costs about 3,300 euros.

Separately, it is necessary to take into account accounting services and audit.

An annual financial audit conducted by an accredited auditor usually costs several thousand euros — depending on the volume of the company’s activity.

For small companies, the estimated cost is:

• preparation of annual financial statements — about 215 euros;
• maintenance of accounting records for six months — approximately 210 euros.

If a company carries out a large volume of operations, accounting accompaniment will be more expensive, although in general, prices for such services in the Seychelles remain competitive.

Ongoing Compliance Expenses

After receiving the license, the company must constantly maintain compliance with regulatory requirements.

Internal expenses include:

• AML monitoring systems;
• solutions for KYC checks of clients;
• staff training;
• internal control.

External expenses can include:

• consultations on updating internal policies;
• preparation of regulatory reporting;
• independent reviews of compliance procedures.

Although in 2024 the legislation of the Seychelles does not establish a mandatory regular AML review by independent auditors, experts recommend allocating a budget for advisory support every year.

If a company expands the list of its services, new types of activity can be added to the license by paying the corresponding additional fees. Similarly, the termination of a certain direction of activity allows for the refusal to pay the corresponding licensing payment.

Additional Services

Depending on the business model, other services may be required.

For instance:

• connection of payment infrastructure for working with fiat currencies (merchant account) — approximately 1,530 euros;
• use of nominee directors or shareholders to provide confidentiality of the ownership structure — for a separate annual fee determined individually.

Seychelles law is quite flexible. It allows:

• 100% foreign ownership of the company;
• use of nominee services;
• various options for corporate structure,

The condition is full transparency before the regulator.

General Estimate of Expenses

For a new company, the initial expenses to enter the market (including company registration, legal accompaniment, and the first government payments) usually amount to 25–30 thousand euros (without taking into account the deposition of the authorized capital).

This is noticeably cheaper than in most major international financial hubs, which makes the Seychelles one of the most economically advantageous jurisdictions for obtaining a crypto license.

At the same time, after the launch of the business, it is necessary to take into account regular annual expenses — license fees, office rent, payment of local staff, audit, and compliance. In general, they can amount to 30–50 thousand euros per year, therefore, even at the planning stage, it is important to have a sustainable business model and a realistic financial forecast.

Step-by-Step Process to Obtain the License

Getting a crypto license in Seychelles is a multi-stage process that usually lasts about 9 months. Below are the main stages of registration.

Initial consultation and preparation

The first step is a consultation with local lawyers or corporate consultants who specialize in licensing in the Seychelles. They will help assess compliance with requirements, explain the procedure, and draw up an action plan.

At this stage, the founders and heads of the company prepare documents for verification (passports, resumes, financial documents, etc.), as well as choose the name of the future company and check its availability.

Company Incorporation

The first formal step is to register a Seychelles company (IBC or domestic company). This involves preparing incorporation documents (Memorandum & Articles of Association), and submitting to the Registrar via a local licensed agent. Incorporation is quick, often a few days once due diligence is passed. After incorporation, you receive the Certificate of Incorporation and other corporate docs.

Preparation of the document package for the license

This is the most voluminous and time-consuming stage.

It is necessary to prepare a full package of documents for submission to the Seychelles Financial Services Authority (FSA). It includes:

• internal policies and procedures (AML, compliance, cybersecurity, etc.);
• detailed business plan;
• financial forecasts;
• official application form;
• package of supporting documents (identities of directors, resumes, certificates of no criminal record, reference letters from banks, proof of origin of funds, etc.).

All documents must be in English. If necessary, they must be notarially certified or apostilled.

During preparation, documents are usually reviewed and finalized several times to fully meet the requirements of the FSA.

Depending on the readiness of the company, this stage takes approximately 4–8 weeks, and sometimes longer.

Submission of the application to the FSA

After completion of the preparation, the package of documents is submitted to the FSA unit responsible for virtual asset service providers (VASP).

Documents can be submitted both in electronic form and in paper form to the FSA office on Mahe Island. Along with the application, it is necessary to provide proof of payment of the registration fee.

After receiving the documents, the regulator officially confirms the acceptance of the application and begins its review.

Important: until the license is issued, the new company does not have the right to provide cryptocurrency services. An exception is made for operators who submitted applications within the transitional period — they may be allowed to continue activities until the completion of the review.

Verification by the regulator and responses to inquiries

At this stage, the FSA conducts a full verification of the applicant.

The regulator analyzes the business model, checks the authenticity of the provided information, assesses risks, and can turn to the specified reference persons.

Quite often, the FSA sends additional requests. For example, it may ask to:

• clarify individual provisions of the AML policy;
• describe the information security system in more detail;
• provide additional documents;
• hold a meeting with the company’s directors.

All requests must be answered fully, qualitatively, and within the established deadlines.

In fact, this is a dialogue between the applicant and the regulator, which lasts until the FSA is convinced that all requirements are met. If several rounds of clarifications arise, the total review period may increase.

Approval and issuance of the license

After successful completion of the check, the FSA first issues an approval in principle (approval in principle), and after fulfillment of all final conditions — a full license.

Before the final decision, the regulator may require to:

• confirm the deposit of the authorized capital;
• complete the setup of the local office;
• fulfill other organizational requirements.

After this, the company receives a VASP License Certificate, and its name is entered into the official registry of licensed virtual asset service providers.

To activate the license, it is necessary to pay the first annual license fee (if necessary — proportionally for the remainder of the year).

From this moment, the company can legally carry out licensed cryptocurrency activity from the Seychelles.

Ongoing requirements after obtaining a license

Obtaining a license is only the beginning. To maintain its validity, the company must constantly fulfill the requirements of the regulator.

Annual confirmation of the license and payment of fees

A VASP license in the Seychelles is issued indefinitely, meaning it does not have a fixed expiration date.

However, every year the licensee is obliged to:

• pay the annual license fee;
• submit a compliance confirmation form before January 1.

As a rule, the size of the annual payment corresponds to the amount paid during the receipt of the license (base fee plus fee for the selected types of activity).

Missing deadlines or non-submission of necessary documents can be grounds for cancellation of the license.

Financial reporting and audit

All licensed VASPs must prepare audited financial statements annually and submit them to the FSA.

Usually, the reporting period coincides with the calendar year, and documents are submitted within 3–6 months after its completion.

If the company was created recently, the first reporting period can cover up to 18 months.

The audit must be conducted by an approved local auditor.

During the check, it is confirmed that the company:

• remains solvent;
• maintains the required level of capital;
• correctly conducts financial accounting.

As a need arises, the FSA may require additional financial reports or information about the financial condition of the company.

Maintaining a real presence in the Seychelles

The company must not only formally be registered in the Seychelles, but also actually carry out activity from this jurisdiction.

For this, it is necessary to constantly maintain:

• an active local office;
• a resident director;
• the work of responsible compliance employees.

Any significant changes — for example, a change of office address or appointment of a new director — must be reported to the FSA, and in some cases, prior approval must be obtained.

Ongoing compliance with AML/CFT requirements

After obtaining the license, the company becomes a subject of financial monitoring in accordance with the legislation of the Seychelles regarding the fight against money laundering and terrorist financing.

This means that it must on an ongoing basis:

• conduct customer verification (KYC);
• carry out transaction monitoring;
• check clients against sanction lists;
• report suspicious transactions to the Financial Intelligence Unit (FIU).

In addition, the company must regularly update its own risk assessment (Institutional Risk Assessment, IRA), especially after changes in business or legislation.

If the FSA or FIU publishes new recommendations or a list of high-risk jurisdictions, internal procedures must also be updated in a timely manner.

In other words, compliance is continuous work, not a formality performed only during the receipt of the license.

Regulatory reporting

In addition to financial reporting, the FSA may require the submission of additional information.

For example, the company may be required to regularly report on:

• volumes of activity;
• number of clients;
• volume of conducted transactions.

It is also necessary to promptly notify the regulator of any significant events, in particular:

• large-scale cyber incidents;
• changes that may affect the company’s activity;
• other significant risks.

In addition, the FSA has the right to conduct inspections and demand additional documents at any time.

Change management

Any important corporate changes usually require notification to the FSA or prior approval.

This applies, in particular, to:

• changes of owners;
• appointment of new directors;
• changes of compliance officer or MLRO;
• transfer of key functions to outsourcing;
• expansion of the list of licensed services.

In case of a change of significant shareholders, the regulator re-evaluates their business reputation and compliance with established requirements.

Customer protection and business conduct standards

Licensed crypto companies must also fulfill the requirements of the legislation on the protection of financial consumers.

In particular, they must:

• provide clients with full and truthful information;
• use fair marketing;
• promptly review complaints;
• provide proper protection of client funds, in particular, separate them from the company’s own funds.

If necessary, the FSA may require reporting on received complaints and ways of resolving them.

Staff training

The company must regularly train employees on issues of:

• compliance;
• cybersecurity;
• internal procedures;
• risk management.

It is also necessary to constantly track legislative changes, recommendations of the FSA and international organizations, and update internal policies in a timely manner.

The Seychelles regulator expects that licensed crypto companies will operate according to the same high standards as traditional financial institutions.

Regular fulfillment of reporting requirements, maintenance of sufficient capital, real presence in the jurisdiction, and an effective compliance system not only helps to avoid sanctions, but also simplifies interaction with the regulator and strengthens the trust of clients and partners.

Conversely, violation of requirements can lead to fines, suspension of activity, or even revocation of the license.