A license can be obtained for many types of business, but this text will focus solely on ventures that deal with cryptocurrencies and blockchain technologies. Receiving an appropriate license is an essential step, which some blockchain companies do not take because, as they mistakenly believe, it is too time-consuming and complicated. The process of obtaining a crypto licensee (especially a Seychelles crypto license) is very straightforward, fast, and cheap.
There exist various types of businesses that will surely benefit from obtaining a crypto license:
- Mining businesses. Mining involves the use of computers to solve complex math problems, and the resulting computational power is employed to verify transactions or solve for crypto key values.
- Exchange businesses. In order to carry out such transactions, exchanges need a license to exchange virtual currencies with fiat currencies or cryptos with other cryptocurrencies.
- ICO businesses. ICOs (initial coin offerings) are funds raised through the sale of tokens by an establishment. There’s a thriving industry surrounding this niche, and obtaining a license for an ICO company is key to a profitable future.
- NFT businesses. NFTs (non-fungible tokens) can be used as means of funding a different venture, so a license is necessary for any business working in the NFT sphere.
- Ready-made businesses. A licensee is required even for those that choose to purchase a functional business.
Why Is It Necessary to Legalize a Crypto Project?
Considering that most of the existing tech giants and leading tech companies are building up their reputation through transparency and adherence to corporate codes of conduct, starting from scratch and building up a company without a license doesn’t seem like a wise move in today’s reputation-driven world.
Legalized establishments have the opportunity to generate more revenue with no risk to their business, which adds up to the increasing number of upsides. The chance to make more money might present itself in various ways, including capital gains, royalties, auxiliary income channels, etc.
What Licenses Are There for Crypto Projects?
Commonly, the licenses are divided into two distinct types:
- Crypto exchanges (Fiat-to-crypto and crypto-to-crypto).
- Crypto wallet.
There, of course, exist additional types of licenses that need to be acquired by a certain type of business that conducts crypto-related dealings. For instance, Japan has its own separate license. Also, some businesses will be required to obtain a license for financial operations with fiat currencies.
What Do You Need for a Crypto License in Seychelles?
It’s essential to determine whether this jurisdiction is right for your business needs. If it is, there’s a document package that you need to prepare in order to file an application. The basic requirements are as follows:
- Already established business in Seychelles
- Business strategy outline
- One-pager
- Proof of no criminal record
- KYC and AML protocols
Depending on the business strategy and the circumstances, you might require additional documentation. Still, it needs to be mentioned that only a handful of businesses ever reported facing any sort of problems related to crypto licensing.
Famous businesses that elected Seychelles as their home can attest to the fact that it’s easy to make money and run a business in this island nation. The above businesses, by the way, include Binance, KuCoin, and Huobi.
What Are the Stages of Receiving a Crypto License in Seychelles?
First of all, you’ll have to make sure that this jurisdiction fits your business needs. After determining the appropriate country, you’ll most likely book a consultation with a crypto business registering professional. He or she will ask you some relevant questions to verify your needs. After the consultation, you’ll get the license recommendations.
From here on out, you will register your new business with or without the aid of this professional. Next, you’ll undergo several steps to obtain the necessary licenses.
Cryptocurrency Regulation in Seychelles
The regulations regarding crypto-to-crypto trading are pretty much non-existent and the same can be said about crypto-to-fiat operations. However, it’s a wise move to get in touch with the Central Bank of Seychelles prior to starting any kind of crypto business. Or you could seek help from businesses that specialize in crypto company registration.
The Seychelles Financial Services Authority does NOT do any type of checks on companies operating in the crypto space.
Why Is It Worth Opening a Crypto Company in Seychelles?
It’s becoming more common for cryptocurrency businesses to migrate overseas, including to offshore jurisdictions. Here are the biggest reasons to relocate your business to Seychelles:
- No taxes
- Transparent legal framework
- Low costs
- Lack of minimum capital requirements
- Flexibility
- Seychelles Financial Services Authority won’t oversee cryptocurrency businesses
What Will Be Required When Registering a Crypto Company in Seychelles?
The main stipulations of opening a crypto company in Seychelles were already laid down in this text. Additional clarification can be provided either by the official representatives of the Seychelles Financial Services Authority or by professionals that deal with crypto licensing and company establishment.