Seychelles Securities Dealer License: Regulatory Updates, Opportunities, and Global Outlook

Seychelles Securities Dealer License: Latest Updates, Requirements, and Offshore Alternatives

The Seychelles Securities Dealer License has become one of the leading offshore regulatory frameworks for CFD, forex, crypto, and securities brokers. Issued under the Securities Act, 2007 and supervised by the Seychelles Financial Services Authority (FSA), it offers a balanced combination of global credibility, operational flexibility, and low tax rates.

In 2024–2025, the FSA introduced important amendments to strengthen governance, investor protection, and compliance standards. While the Seychelles Securities Dealer License remains cost-efficient compared to other regulated jurisdictions, applicants should carefully consider the new requirements.

What Can a Seychelles Securities Dealer Do?

Licensed brokers in Seychelles are permitted to:

Trade in securities, forex, and derivatives as principal (market maker) or as agent.
Offer CFDs (Contracts for Difference) on forex, commodities, indices, equities, and cryptocurrencies (but not spot cryptocurrencies)
Provide investment advice, research, and portfolio management.
Deal in a full spectrum of securities, including bonds, futures, warrants, and options

This wide scope makes Seychelles highly attractive compared to alternatives such as a Labuan Money Broking License or a Mauritius Investment Dealer License.

2025 Regulatory Changes for Seychelles Securities Dealers

The Securities (Amendment) Act, 2024 and related regulations, effective January 2025, introduced key reforms

Capital Requirement: Minimum paid-up capital doubled from USD 50,000 to USD 100,000, held in an approved bank.
Governance: At least two resident directors (foreign nationals allowed with work permits).
Local Presence: Two “fit and proper” persons (directors, compliance officer, or senior management) must be physically present in Seychelles.
Perpetual Licensing: Licenses are now valid indefinitely, provided annual fees (USD 6,000) and compliance filings are maintained.
Advertising: Mandatory clear risk warnings for all digital and offline marketing.
Client Classification: Firms must categorize clients as retail or professional, with suitability tests for speculative products (leveraged CFDs, rolling spot forex).
Outsourcing Restrictions: Only support functions can be outsourced externally; core functions may only be outsourced to affiliated entities.

CFDs with Cryptocurrencies: FSA Clarification

In February 2025, the FSA issued a Circular on CFDs with Virtual Assets (crypto)

Permitted: CFDs with cryptocurrencies as underlying assets are legal under the Securities Act.
Not VASP: Offering crypto CFDs does not require a separate Virtual Asset Service Provider (VASP) license.
Suitability Testing: Brokers must assess whether retail clients understand the risks of leveraged crypto CFDs.
Risk Disclosures: Clear, prominent warnings are required in all promotional materials.

This makes Seychelles one of the most crypto-friendly regulated jurisdictions for CFD brokers.

Advantages of a Seychelles Securities Dealer License

Global Recognition: Over 190 firms licensed as of 2024, including ATFX, Equiti, and Scope Markets.
Tax Benefits: 3% corporate tax rate.
Wide Product Offering: From forex and securities to crypto CFDs.
Confidentiality: Beneficial owners and shareholders are not part of public record.
Cost-Efficiency: Lower entry cost than EU, UK, or ASIC licenses.

For firms looking for alternative jurisdictions, popular options include:

Mauritius Investment Dealer License – respected by banks, institutional investors, and regulators.
Curacao Securities Intermediary License – budget-friendly entry point for global brokers.
Labuan Investment Banking License – suitable for market makers with higher capital resources.

Licensing Requirements & Timeline

Timeline: 8–12 months (excluding bank account opening).
Capital: USD 100,000 minimum, maintained in an approved bank account.
Directors & Shareholders: At least 2 shareholders (any nationality) and 2 directors (must be resident in Seychelles).
Local Office: Registered office, compliance officer, and at least 1 licensed Securities Dealer Representative.
Annual Costs: USD 6,000 license fee + compliance, audit, and staffing costs.

FAQs on Seychelles Securities Dealer License

1. Can Seychelles-licensed brokers offer crypto trading?
Yes. CFDs on cryptocurrencies are permitted under the Securities Act and do not fall under VASP regulation

2. How much capital is required?
As of 2025, a minimum of USD 100,000 must be issued, paid-up, and held in an approved bank account

3. Do directors need to be based in Seychelles?
Yes. At least two resident directors are required, but they may be foreign nationals on work permits

4. How long does licensing take?
Typically 8–12 months, subject to due diligence and banking timelines.

5. Which companies hold Seychelles Securities Dealer Licenses?
Global brokers such as ATFX Global Markets (Seychelles), Equiti Group, and Scope Markets operate under Seychelles licenses.

6. How does Seychelles compare with Mauritius or Labuan?
Seychelles offers lower capital and faster setup than Mauritius, while Labuan offers stronger ties to Asia but stricter client restrictions.

Comparison: Seychelles vs Mauritius vs Labuan vs Curaçao

Feature	Seychelles Securities Dealer	Mauritius Investment Dealer	Labuan (Malaysia) Money Broker / Investment Banking	Curaçao Securities Intermediary
Capital Requirement	USD 100,000 (2025 update)	USD 33,000–333,000+ (depending on license type)	USD 240,000 (Money Broker) / USD 2.3M (Investment Bank)	No fixed statutory capital (flexible, depends on structure) - suggested USD 70,000
Regulator	FSA Seychelles	FSC Mauritius	Labuan FSA (LFSA)	Central Bank of Curaçao and Sint Maarten (CBCS)
License Scope	Securities, forex, CFDs, crypto CFDs	Securities, forex, derivatives, asset management	CFDs, derivatives, securities (limited under Money Broker) / Unlimited under Investment Bank	Securities, forex, derivatives,
Client Restrictions	Can onboard retail & professional clients (with classification)	No explicit retail restrictions, widely accepted globally	No Malaysian residents allowed; restricted leverage & client ratios (Money Broker)	Broad global onboarding allowed
Taxation	3% corporate tax	3% depending on activities	3% under Labuan IBFC regime	0%–2% effective tax, depending on structure
Setup Time	8–12 months	6–9 months	6–12 months	6–9 months
Local Presence	1 resident director, compliance officer, local office	2 resident directors, substance requirements (offices, staff) - can be outsourced	Local office, compliance officer required	Registered local representative required (Director)
Notable Brokers Licensed	ATFX, Equiti, Scope Markets	AXYS, MCB Capital Markets, FX & securities dealers	Amana Capital, Fusang Exchange, Deriv, Huobi, XS Finance	Exness, and Smaller global brokers, boutique trading firms
Best For	Global CFD/crypto brokers seeking cost-efficient regulation with credibility	Global CFD brokers & asset managers targeting Africa, Asia, EU	Smaller STP brokerage firms (Money Broker) or Established market makers with Asia focus for Investment Banks	Budget-friendly startups & mid-size brokers targeting global markets

Final Thoughts

The Seychelles Securities Dealer License remains a leading offshore option for brokers seeking a balance of regulation, cost-efficiency, and flexibility. With the 2025 reforms, Seychelles is aligning closer with global investor protection standards while continuing to attract CFD, forex, and crypto brokers.

For fintech entrepreneurs and brokerage operators, Seychelles offers a strategic base for international growth – especially when combined with multi-jurisdictional setups in Mauritius, Labuan, or Curaçao.