Seychelles approves landmark crypto bill to regulate virtual assets sector

[Yamane_Keto]

Seychelles, long regarded as a crypto-friendly jurisdiction, is moving to rein in the digital asset industry within its borders as consumer complaints about crypto-related losses continue to rise.

The country’s National Assembly has unanimously approved a new Virtual Assets Bill presented by Finance Minister Naadir Hassan. The legislation, reported by Seychelles News Agency, aims to establish a comprehensive legal framework for regulating virtual asset service providers (VASPs) operating in Seychelles.

The details
Under the new framework, VASPs will be required to set up a company under either the Seychelles Companies Act or the International Business Companies Act.
Applicants must demonstrate a “substantial presence” in Seychelles, including having a resident director and an adequately staffed office.
The Financial Services Authority (FSA) has been designated as the regulator responsible for implementing and enforcing the Virtual Assets Bill.
Key VASP activities that will require licensing include virtual asset exchanges, brokerage, investment services, and wallet providers.

https://www.mariblock.com/seychelles-approves-landmark-crypto-bill-to-regulate-virtual-assets-sector/

The Seychelles licenses have made it possible for many cryptocurrency exchanges to operate without requiring strict KYC requirements for users or at least not asking for any data unless you exceed the 1-10 BTC limit per day. If the law is passed, many cryptocurrency exchanges may close and if some clauses require the disclosure of all user data, these services may move to other countries or shut down.

[Aanuoluwatofunmi]

All we could see after the said regulations in which the various governments are planning over a country regarding cryptocurrency is for them to be able to extract out their taxing strategies, but i still see it as something not fare enough on the crypto community or users, when they are paying task on what they stand to benefit nothing from, i still don't understand how all these will be of the interest of the users as well, from which the task is been generated.

[hugeblack]

Cryptocurrency exchanges have been abusing their Seychelles license and are now imposing KYC on users, requesting data and other regulatory stuff with a license that was primarily used as a tax loophole and to attract projects. This could positively impact cryptocurrency exchanges or at least reduce fraud.