Binance Does Not Engage in Exchange Operations in Seychelles

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The Financial Intelligence Unit (FIU) in Seychelles has clarified that while the company Binance, the world’s largest cryptocurrency exchange, maintains an office in the island nation, it does not conduct any exchange activity within Seychelles.

This statement comes after India’s FIU announced the restriction of access to web platforms of crypto wallets, including Binance, for Indian users, with the removal of associated apps from the Google Play Store.

A report in the Indian newspaper Economic Times revealed that major global cryptocurrency exchanges and virtual digital asset service providers such as Binance, Kucoin, and OKX had their websites blocked in India on January 12. Show cause notices were issued to several companies, including Binance, for operating unlawfully in India, due to non-compliance with registration and local tax regulations.

Despite maintaining an office in Seychelles, Binance’s activities do not involve cryptocurrency operations within the country, as confirmed by Richard Rampal, the director of the FIU. Rampal clarified that Binance operates a research center in Seychelles, but it does not engage in cryptocurrency activities.

Binance, known for operating the largest cryptocurrency exchange globally, has faced legal scrutiny in various jurisdictions. In 2021, it faced investigations by the United States Department of Justice and Internal Revenue Service for alleged money laundering and tax offences. Additionally, the UK’s Financial Conduct Authority ordered Binance to cease all regulated activity in the United Kingdom in June 2021. On November 21, 2023, Binance pleaded guilty to federal charges, admitting to money laundering, unlicensed money transmitting, and sanctions violations, agreeing to pay over $4 billion in fines.

Seychelles has registered several virtual asset service providers (VASPs) and is in the process of introducing a new law to regulate their operations. The National Anti-Money Laundering and Countering the Financing of Terrorism Committee (NAC) is currently in the consultation phase for the proposed regulatory framework, expected to be implemented by March this year.

VASPs are entities facilitating the exchange of virtual assets, including cryptocurrencies like Bitcoin, non-fungible tokens, and utility tokens such as Filecoin.