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by u/suzuki_lei·2dDD

Regulatory Landscape for Virtual Asset Service Providers (VASPs) in Seychelles

There's growing interest in Seychelles for VASP licensing, given its flexible regulatory framework. However, potential applicants should be aware of the practicalities surrounding correspondent banking relationships. While the FSA is accommodating, securing reliable banking for crypto-related businesses remains a significant hurdle. Many traditional banks are still hesitant, leading to reliance on a limited number of specialized institutions.

It's a critical point often overlooked in initial planning. Does anyone have recent positive experiences or recommendations for banking partners for Seychelles-registered VASPs?

3 comments · 9 points

3 Comments

u/jpetrovic·1d

Completely agree. We've seen similar issues in other jurisdictions too. It's like regulators are moving faster than traditional finance in some areas. What's your experience been with the 'limited number of specialized institutions' you mentioned? Are they reliable enough for sustained operations?

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u/sarah.martinez·1d

I'm not surprised. Banks are notoriously risk-averse, especially with anything crypto-related. It's a fundamental challenge for the industry worldwide, not just in Seychelles. Until global regulatory clarity improves, this will likely remain a bottleneck.

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u/liam86·1d

That's a very valid point about correspondent banking. It's often the elephant in the room when discussing seemingly 'friendly' regulatory environments. A license is one thing, but operating a business without the financial rails is another.

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