Benefits of a Seychelles Crypto License for Your Project in 2024

Many enthusiasts in the crypto sector consider Seychelles as the ultimate choice for licensing their blockchain projects. This crypto-friendly offshore country is known for its welcoming stance toward crypto businesses as long as they act in compliance with local laws and regulations. How can the crypto license in the Seychelles benefit your startup?

Seychelles: A Crypto-Friendly Haven

Ever since the crypto niche started rapidly gaining popularity, Seychelles has been considered one of the most beneficial offshore jurisdictions to start your business in. This landscape is particularly favorable in 2024: earlier this year, the Seychelles Financial Services Authority (FSA), which issues the Seychelles crypto license and oversees crypto companies in the country, started working on the improvement of the existing regulations in Seychelles.

The main purpose is to make the local legal framework for cryptocurrencies streamlined and comprehensive for all types of businesses. There are currently 4 types of crypto licenses you can apply for in Seychelles. Due to the similarity of requirements, fulfilling them comes with no extra complications, regardless of the license type you aim to secure.

The Benefits of Choosing Seychelles for Your Crypto Project

Apart from a lenient and crypto-friendly regulatory environment, there are other benefits you can reap from licensing your business in the Seychelles.

• Beneficial tax regime. Seychelles is a well-known offshore financial center. It has a favorable tax regime for all kinds of international businesses, including the ones dealing with crypto. There is no capital gains tax and no taxes on dividends, which makes it a cost-effective location for crypto startups.
• Focus on Finance. Experienced entrepreneurs know that Seychelles has a robust financial sector, especially when it comes to international finance. With an added focus on crypto development, Seychelles becomes a hotbed of innovation in FinTech development.
• Incorporation Flexibility. Seychelles allows crypto firms to incorporate as International Business Companies (IBCs). These companies are not required to pay local taxes on income generated outside of Seychelles and can be incorporated with minimal requirements​.
• Strategic Location. Seychelles is situated in a key geographic location, offering access to both African and Asian markets. This makes it a strategic hub for global crypto operations, providing proximity to emerging economies and growing markets for digital currencies​.

A Closer Look at Seychelles Crypto Regulatory Framework

Seychelles first legalized the regulation of crypto assets with the passing of the Virtual Asset Service Providers (VASP) Bill in August 2024. This marked a significant shift in the country’s approach to digital finance. Among other things, the Bill prohibits companies without a local VASP license from operating within the Seychelles.

The crypto legal framework in Seychelles is complex, offering 4 distinguished types of licenses depending on the activities of your company: custodial and non-custodial services, virtual asset exchange, virtual asset broking, or virtual asset investment service provider. It is important to study the description of each license type in advance and choose the one that suits your business description. Most new startups prefer to do it under the supervision of a certified lawyer.

Why Seychelles is a Tax Haven for Crypto Businesses

Crypto companies in Seychelles can register as International Business Companies (IBCs) before applying for a license. It allows them to enjoy tax benefits such as general tax exemptions on foreign-sourced income: in simple terms, you won’t have to pay taxes on any income generated outside Seychelles.

However, when these companies operate domestically, they are subject to local taxes, including corporate income tax on profits generated within Seychelles. The corporate income tax applies at a rate of 15% on the first SCR 1,000,000 (approximately USD 76,000), and 25% on income beyond that amount. Additionally, the standard withholding tax rate in Seychelles is 15%.

Seychelles might not be a tax haven per se but its tax policy is definitely one of the most business-friendly, especially compared to traditional onshore jurisdictions.

Business Benefits of a Seychelles Crypto License

Obtaining a crypto license in Seychelles offers several key advantages for businesses.

• A crypto-friendly regulatory environment, which is backed up by the Virtual Asset Service Providers (VASP) Bill clearly outlining the rights and obligations of crypto companies registered in the country.
• Relatively fast incorporation and licensing processing, which can take up to 3 months if you have a professional legal expert curate all the documentation for you.
• The possibility of remote incorporation, operation, and reporting. You won’t have to travel to Seychelles to launch or further conduct your business.
• The possibility of pairing up your crypto license with the Forex license in Seychelles once you obtain the approval of the Central Bank.

All these and many other factors positively impact the development of your virtual-asset business in the Seychelles.

Expanding Your Reach from Seychelles

Due to the strategic geographical location of the Seychelles, your company can simultaneously expand into both African and Asian markets. Located in the Indian Ocean, Seychelles provides easy access to fast-growing emerging economies. As the owner of a crypto company, you will have the potential to expand your reach to underserved regions with high demand for digital assets and blockchain solutions.

In addition to its geographical advantage, Seychelles is home to a number of crypto exchanges and related businesses, including OKX, KuCoin, and MEXC Global, which are incorporated in the country. This ecosystem provides an environment where crypto companies can collaborate effectively.

Thriving in Seychelles Crypto Ecosystem

The crypto ecosystem in the Seychelles is growing rapidly, and its business-friendly regulations attract ambitious startups from all over the world. By obtaining a crypto license, businesses can thrive in an environment that supports innovation, particularly in areas such as Initial Coin Offerings (ICOs), Non-Fungible Tokens (NFTs), and other virtual asset services. The regulatory framework intends to facilitate both innovation and risk management, ensure that businesses comply with AML-CFT standards, and enable their uninterrupted growth at the same time.