Seychelles Enforces VASP Rules on Crypto, Exchange and Web3 Company Names
A Seychelles certificate of incorporation proves that the company was incorporated. It does not, by itself, establish that the company remains in good standing, or that it may operate a crypto exchange, hold customer tokens, broker virtual asset trades or promote a regulated token offering.
That gap has now reached the company name itself. A Seychelles crypto company name that can reasonably be read as suggesting a regulated virtual asset business is a compliance problem in its own right, whether or not the company provides those services.
What the FSA published on 27 August 2026
The Financial Services Authority said it had reviewed the IBC register and identified ten companies still in breach of section 40 of the Virtual Asset Service Providers Act, 2024. The names in the annex carried variations of “coin”, “NFT”, “virtual” and web terminology.
Each company had already been contacted through its International Corporate Service Provider and given a reasonable period to remove the wording from its registered business or trade name if it did not intend to become licensed or registered. Once that period ran out, the FSA initiated the process to strike the companies off the register under the International Business Companies Act.
Two details in the notice are easy to overstate. The FSA said it had started the strike off process, not that the ten companies were already dissolved on 27 August. And the finding recorded is a naming breach. Section 40(2) deems that breach to be a contravention of the authorisation prohibition, but the notice by itself does not establish that any of these companies operated a trading venue or held customer assets.
Why a company name is a regulatory question
Section 40 of the VASP Act does two things. Subsection (1) treats a person as purporting to carry on virtual asset services where the business description or title uses words that connote them, in English or any other language. Subsection (2) then says that a person who is neither a licensee nor a registrant, and who uses a name containing the listed words, contravenes section 5(1) or section 27(1).
That construction matters. The name is not a separate minor offence. It is routed straight into the prohibition on unlicensed virtual asset services and unregistered token offerings. On conviction, an individual may face a fine of up to SCR 2,250,000, imprisonment for up to 15 years, or both. A body corporate may face a fine of up to SCR 5,250,000. A continuing offence may attract further daily fines after conviction.
A customer who sees a company called “Global Digital Wallet Exchange Ltd” may assume Seychelles registration means the FSA has reviewed the business. The restriction deals with that impression, before anyone reaches a licensing disclosure.
None of this is new law. The Act commenced on 1 September 2024, and the FSA followed it on 2 September 2024 with Circular No. 4 of 2024, listed in the FSA VASP legal framework, which set out the prohibition on certain words. What changed in August 2026 is that reminders and remediation deadlines turned into a published strike off.
The words the FSA has flagged
| Word or expression | Why it creates a regulatory issue |
|---|---|
| Block chain | Suggests blockchain based virtual asset products or services |
| Exchange | Suggests a virtual asset trading or conversion venue |
| Cryptocurrency | Names a category of virtual assets directly |
| ICO | Refers to an initial coin offering, which requires registration |
| Currency | May imply a virtual currency service in context |
| NFT | Refers to non fungible tokens, whose issue and promotion are regulated |
| DeFi | Suggests decentralised finance products or virtual asset services |
| Virtual | Implies virtual assets, virtual coins or related services |
| Digital wallet | Suggests custody, transfer or wallet services |
| Virtual coin | Suggests a virtual asset product directly |
| Hot/cold wallet | Suggests safekeeping of virtual assets |
| Web 3 | Suggests a business connected with virtual asset products |
The list is not exhaustive. Section 40(2) closes with a catch all for any other combination of words that could reasonably be used to allude to services licensed under the Act, and subsection (1) reaches other languages. Abbreviations, compounds, alternative spellings and translations can therefore all fail the test. The Act lists “cryptocurrency” rather than the standalone “crypto”, which does not make “Crypto” safe in an unlicensed name, and writing “blockchain” for “block chain” or “Web3” for “Web 3” is not a workaround.
Does the rule apply only to newly registered companies?
No. The August notice concerns companies that were already on the IBC register, which is precisely the point. An existing registration does not put a name beyond later review.
The restriction reaches trade names as well as registered names. A neutral registered name therefore does not solve the problem if the company uses a non compliant trade name. A domain, product brand or website statement is not automatically a trade name, though section 40(1) also covers making a representation, or otherwise holding out, as carrying on virtual asset services; either way it shapes how banks, EMIs and counterparties read the business. Acceptance at incorporation confirms nothing about whether the company falls outside the VASP Act, is licensed or registered by the FSA, or will satisfy a bank. Nor does an intention to apply for a licence permit the wording to be used in the meantime. Case specific confirmation should come from the corporate service provider or the FSA.
What happens to an IBC that keeps the name
The FSA reserved the possibility of further measures beyond strike off. Stopping operations, taking down a website or ignoring correspondence from the registered agent does not cure a name breach. If the registered or trade name is non compliant, the company should formally change it, unless its licence, registration or applicable transitional status permits the wording. Preparing or submitting an application is not authorisation on its own, and the position should be confirmed with the corporate service provider or the FSA. A replacement name that produces the same impression solves nothing.
Registration, licence and token registration are three different things
| Status | What it establishes | What it does not establish |
|---|---|---|
| Seychelles company registration | The entity has been incorporated | Any permission to provide virtual asset services |
| VASP licence | Authorisation for specified virtual asset activities | Permission to conduct every crypto activity in every country |
| ICO or NFT registration | That a particular offering has been registered | A general licence to run an exchange, brokerage or wallet business |
The FSA publishes a VASP list and a separate register of ICOs and NFTs. Read the VASP page carefully. It separates licensed VASPs from entities listed under “Virtual Asset Service Providers Assessment”. An entry marked Assessment represents a transitional applicant permitted to continue operating pending determination, and should not be described as an issued VASP licence. The two statuses should not be treated as identical.
We cover the wider distinction in our guide to Seychelles company registration versus a financial licence, and the verification steps in our guide to checking a Seychelles financial or VASP licence.
Can a Seychelles IBC run a crypto business without a VASP licence?
If the activity falls within the regulated definition, generally no. The FSA’s VASP FAQs state that licensing is required by the fact that the entity is incorporated in Seychelles, wherever the services are carried out. The four licence categories cover wallet, exchange, broking and investment services. Applicable ICO and NFT offerings follow a separate registration regime, and their promotion is restricted to licensed VASPs or entities licensed under the Securities Act.
Not every business touching blockchain is a VASP. A developer, infrastructure provider or consultant that does not exchange, transfer, safeguard, broker or manage virtual assets may sit outside all four categories, but that conclusion has to come from the actual service, the contracts, the flow of assets and whether the company controls wallets. Calling the business a technology company does not achieve it.
The name is still a separate question. A business can sit outside the licensing perimeter and still carry a name that tells the public otherwise.
What to check before you incorporate
Name clearance belongs after the business model is mapped, not before. Work out what the company will provide and to whom, whether it will exchange, transfer, safeguard or manage virtual assets, whether it acts for customers or only licenses software, and whether it will issue or promote an ICO or NFT. Then test whether the proposed legal name, trade name and domain imply an FSA regulated activity.
The rest is commercial. Which countries will the company market into, and what do they require? What substance, governance and compliance arrangements would a licence need? Firms comparing jurisdictions may find our note on offshore forex broker licensing in Seychelles and Mauritius useful.
An attractive name is worth little if it later has to be changed across corporate records, the website, contracts, bank files and vendor onboarding. Review the legal name, trade name, domain, product descriptions and licensing strategy as one package.
What existing Seychelles IBCs should do now
Start with facts rather than assumptions. Check the exact registered name, every trade name in use, the status of the company, and anything received through the International Corporate Service Provider. Then compare what the business plan, website, contracts and bank account application describe against what the company actually does.
If there is no intention to carry on a licensed or registered activity, discuss a compliant name change with the corporate service provider. If the plan is to seek authorisation, establish first whether the activity needs a licence, an ICO or NFT registration, or neither. Either way, change the name and the surrounding records together. A new IBC name alongside an old website, old contracts and old KYC files creates a second set of inconsistencies, which is where offshore bank and EMI applications tend to fail.
How banks and EMIs read a virtual asset name
A virtual asset name is often the first risk marker an onboarding team sees. Expect requests for the FSA licence or registration record, a perimeter analysis, a description of customer and asset flows, source of funds and monitoring controls, and evidence that the website and contracting entity match the applicant.
That is not an automatic rejection. It is an expectation that the applicant can explain why the business is authorised, registered or outside the perimeter. Changing the name guarantees nothing either, because institutions assess real activity, ownership, jurisdictions, customer base and controls. This is why our bank account opening and payment and EMI work starts with the business model rather than a shortlist of names, and why the same scrutiny applies to the claims made on a broker website.
Frequently asked questions
Does the FSA notice mean these ten companies were running unlicensed exchanges? No. The notice records a breach of the name restriction in section 40. Section 40(2) treats that as a contravention of the authorisation prohibition, but the notice does not make a separate finding that any of the companies provided virtual asset services.
My IBC name was approved in 2023. Is it protected? No. The companies in the August 2026 annex were all already on the register. Acceptance of a name at incorporation is not a ruling on whether it complies with the VASP Act.
Can we keep the name if a licence application is in preparation? The safe assumption is no. The restriction applies to a person who is neither a licensee nor a registrant, and preparing an application does not change that status. Confirm the position through the service provider or the FSA before relying on it.
How FinPro Consulting can help
FinPro Consulting coordinates the corporate, licensing and onboarding sides of an international structure. For a Seychelles virtual asset project that usually means a regulatory perimeter assessment, a comparison of company formation and licensing routes, a name risk review, work with Seychelles service providers and qualified legal counsel, and bank and EMI files that read consistently against the regulatory position.
If you are forming a Seychelles company or reviewing an existing IBC with a crypto, exchange, NFT, wallet or Web3 name, talk to us before relying on the name or presenting the company as authorised.
FinPro Consulting is an independent consulting firm and is not the Seychelles FSA. Regulatory approval, name acceptance and bank or EMI onboarding remain decisions for the relevant authority, registrar and financial institution. Legal opinions and other reserved services must come from appropriately qualified professionals.
