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Crypto regulations in Seychelles: Crypto Companies Threaten to Move Abroad

Issues Surrounding Crypto Regulations

It is not new that companies who run crypto exchanges often have issues with the government on a regular basis. This is partly because of the decentralized system on which most of these companies run. These regulations differ for each continent and countries, and it can be really bad in some places like Africa.

Crypto Regulation by FSA Seychelles

The Financial Service Authority (FSA) of Seychelles is responsible for policy and operational regulation in the Seychelles State. They are consequently responsible for issuing operation license for organizations and businesses in the state.

FSA Crypto Regulation Issue with Huobi Exchange

The FSA has issued a notice of caution to Huobi Crypto Exchange in response to Huobi’s claim of licensed operation in the state of Seychelles. Huobi claims to be operational in Seychelles under the International Business Company (IBC) of the FSA act 2013.

FSA responded by clarifying that there was never a point where it issued a license of operation to Huobi Crypto Exchange. The service authority also explained that the claim of Huobi Exchange is false, and therefore expects Huobi to respond appropriately to this caution.

The FSA caution notice states:

“The FSA hereby informs the public that the aforementioned IBC does not hold any license issued by the FSA to undertake such type of activity. Therefore, the entity is not being regulated by the FSA, nor has it been in the past”

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Crypto Regulation Content on Huobi’s Official Website

Huobi is arguably the largest Cryptocurrency Exchange in China. On their official website, they made a reference to the Republic of Seychelles regarding some laws and regulations which allows them to operate in the state:

“Any matter not covered in this statement shall be handled in accordance with relevant laws and regulations of the Republic of Seychelles. Where this statement is in conflict with relevant laws and regulations of the Republic of Seychelles, the latter shall prevail.

State of Crypto Regulation on Huobi

The Financial Service Authority of Seychelles have maintained their ground on this issue and warned the public and various investors from dealing with the cryptocurrency platform to avoid any fraudulent activities because they do not have the license to operate in the state.

Similar Crypto Regulation Issues

In 2020, Binance faced a similar issue when Malta issued a warning regarding its operation in the country. For years, Binance had claimed that its headquarters is in Malta, and eventually, in early 2020, the country responded to debunk such a claim to be false. Everyone was surprised because Binance is the top Crypto Exchange and should not have issues like that.

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Binance downplayed it back them by claiming not to have a physical headquarters since it is a decentralized organization. We are not sure what the next response of Huobi would be, but there is a high chance that the Chinese Exchange will downplay it also like Binance.

These issues crypto exchanges face is due to their lack of widespread acceptance in the most part of the world. As more people and countries adopt cryptocurrency, things will change for better.


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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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