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ARTICLE · 12 MARCH 2025

Seychelles: Clarity On Treatment Of Virtual Asset Based Contract Of Differences

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The Financial Services Authority (FSA) has determined that Contract for Differences (CFDs) with VA as the underlying asset should NOT be considered as a virtual asset service under the VASP Act.

SeychellesTechnology
Malcolm Moller
Malcolm Moller
Juliette Ally
Juliette Ally
Jyotika Kaushik
Jyotika Kaushik
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The Seychelles Financial Services Authority (the FSA) via Circular No. 3 of 2025 has provided much awaited clarity in respect of treatment of Contract for Differences (CFD) where the underlying asset is a Virtual Asset (VA) as defined under the Virtual Asset Service Providers Act, 2024 (VASP Act).

The Financial Services Authority (FSA) has determined that Contract for Differences (CFDs) with VA as the underlying asset should NOT be considered as a virtual asset service under the VASP Act. The FSA has relied on the following reasons to make this determination:

  • Nature of CFDs: CFD as an instrument does not involve the actual purchase of VA. Rather, it allows the trader to speculate on the price movements of that asset. The trader enters into a contract with a broker and the contract value is determined by the difference between the opening and closing prices of the underlying VA.

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