VASP bill approved by Seychelles’ National Assembly

The Seychelles National Assembly has given the green light to a new bill aimed at regulating virtual asset providers. The bill, presented by Naadir Hassan, the Minister for Finance, Economic Planning and Trade, received unanimous approval on Tuesday.

Hassan explained that the bill is part and parcel of a national strategy to tackle financial risks associated with virtual assets and virtual asset service providers (VASPs). It’s closely tied to the National Anti-Money Laundering and Countering the Financing of Terrorism Committee (NAC) and related regulations.

The law’s got a dual purpose: it’ll ensure that virtual assets and VASPs can operate responsibly while also reducing the risk of dodgy characters misusing them.

To get the nod, VASPs, whether they’re based in Seychelles or abroad, will need to set up shop under the Seychelles Companies Act or the International Business Companies Act (IBC). Hassan laid out the ground rules, saying that to qualify for a licence, you’ve got a real presence in Seychelles, such as having a resident director, an office with enough competent staff, and keeping all your records accessible through that office.

He made it clear that individuals can’t apply for a licence – it’s got to be a registered entity. If you’re already regulated by the Central Bank of Seychelles, you’ll need their thumbs up, and everyone will have to go through a risk evaluation before they can start operating as a VASP.

Read more: Seychelles News Agency