The Financial Services Authority and the Seychelles Ministry of Finance have begun assessing the risks of the cryptocurrency industry for its subsequent ban or licensing of cryptocurrency firms.
reported local media head of anti-money laundering and terrorist financing of the Seychelles Financial Services Authority (FSA) Randolf Samson.
Many cryptocurrency platforms are registered in Seychelles as international commercial companies. However, they operate on the Internet outside the jurisdiction of the island nation, and often these firms are involved in illegal activities. After registering a company in Seychelles, Samson said the country must ensure that the registered legal entity does not engage in money laundering and does not commit illegal actions.
“The reason firms register in the Seychelles is because we do not have strong regulations that could prevent them from operating in our country. Cryptocurrencies are developing very quickly, and the laws of many countries do not have time to adapt to them, ”Samson said.
Therefore, the FSA and the Ministry of Finance, together with other government bodies, began to assess the risks of the cryptocurrency industry in order to weigh all its disadvantages and advantages. If research proves that the Seychelles will benefit from this activity, regulators will license firms that work with cryptoassets. However, if the FSA and the Ministry of Finance come to the conclusion that cryptocurrencies carry too many risks and damage the reputation of the state, this activity will be banned in the Seychelles.
“We will have to take a certain stance with regard to cryptocurrencies, as they are popular with a huge number of people. Other countries have already begun to explore options for regulating this area, ”added Samson.
According to last year’s CipherTrace study, about 70% of marketplaces registered in the Seychelles do not adhere to customer identification (KYC) and AML rules.