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Seychelles vs SVG for crypto trading

TheCryptoAnt

TheCryptoAnt

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Aug 1, 2022
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#1
Hey y'all,

I've been using a Seychelles IBC (owned by a FZCO) for crypto trading for some time. However, I can't stop bumping into more and more people who use SVG for the same purpose.

Why tho? Both structures on paper look similar to me. Is there any regulation I'm missing? Any specific crypto rule?
Is there any way to bank a crypto trading company from SVG? Seychelles is doable but idk about the other.

ty
 
#4
What kind of crypto trading?

SVG's popularity as in many cases been due to marketing, poor if any regulatory oversight, and low cost. There are some people out there pushing SVG as absent crypto regulations, when in reality they do have laws.

stronco said:
>Seychelles IBC (owned by a FZCO)

Whats the advantage of this combo ?
Click to expand...
An interesting topic for another thread. Let's stay on topic here, though.
 
#5
Sols said:
What kind of crypto trading?
Click to expand...

Primarily futures on Binance and yield from Nexo, ~$5M AUM. No DeFi nor on-chain, and I manage portfolios for two clients.

Sols said:
SVG's popularity as in many cases been due to marketing, poor if any regulatory oversight, and low cost. There are some people out there pushing SVG as absent crypto regulations, when in reality they do have laws.
Click to expand...

What type of 'crypto regulations'? Any significant ones? Maybe you have a link I can read? Most info I can find online is vague at best.

Ive read SVG 'IBC's dont have to keep books? That'll be great as its a bit of a pain for me to generate reports as most softwares for this purpose are trash.

ty
 
#6
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#7
Sols said:

Notice To All Virtual Assets Service Providers And Persons Seeking To Conduct Business As A Virtual Asset Service Provider – Financial Services Authority

svgfsa.com svgfsa.com

The law is linked there but you have to look up other regulations to find certain definitions of terms.
Click to expand...

After reviewing this document, it appears to mainly pertain to crypto exchanges/FX brokers that accept crypto deposits. It also addresses companies that launch a token.

If you are trading your own money, this may not apply to you (unless I'm mistaken in my interpretation). However in my case, as I have two clients, it seems that this would indeed apply to me. It remains unclear how likely I am to finesse the SVG FSA (feasible imo).

So, if my interpretation is correct, SVG is indeed better than SC as theres no accounting requirement and its cheaper to maintain. This being said it would be more difficult to bank a SVG crypto trading company than an SC, unless you know of an EMI I dont.

Hey @wellington u may know something here I don't? Id appreciate any input from your side.
 
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#8
TheCryptoAnt said:
So, if my interpretation is correct, SVG is indeed better than SC as theres no accounting requirement and its cheaper to maintain.
Click to expand...
I never found such aspects particularly compelling. Don't do my own accounting and the cost of having someone else accounting is easily redeemed in the form of easier operating of business (mainly around tax and banking).

But to each their own.

TheCryptoAnt said:
This being said it would be more difficult to bank a SVG crypto trading company than an SC, unless you know of an EMI I dont.
Click to expand...
The reputation of SVG is a problem when you begin to approach banks. Both are low-cost, opaque tax havens with and suffer from that. It's just that SVG is disproportionately popular with unlicensed forex and such, whereas Seychelles requires and issues licenses. You end up guilt by association.
 
#9
Sols said:
I never found such aspects particularly compelling. Don't do my own accounting and the cost of having someone else accounting is easily redeemed in the form of easier operating of business (mainly around tax and banking).

But to each their own.
Click to expand...

I don't really care tbh but you should see how bad the crypto tax/reporting software is. Even the most refined ones import data full of errors, and it takes days to manually correct everything. If they just let me be (SVG) it's a plus for me.

Sols said:
The reputation of SVG is a problem when you begin to approach banks. Both are low-cost, opaque tax havens with and suffer from that. It's just that SVG is disproportionately popular with unlicensed forex and such, whereas Seychelles requires and issues licenses. You end up guilt by association.
Click to expand...

Indeed banking this setup is difficult, but in my case, I can survive without a bank account.

Let's see if someone adds something in the following days while I do some extra research, but it's not looking bad.
 
#14
TheCryptoAnt said:
In my case, I'm not sure what to do—whether to keep the Seychelles IBC (owned by the FZCO) or move my trading to the FZCO (as trading is an excepted activity). SVG sounds good, but it seems like dealing with them is a pain.
Click to expand...
hard to say, if its all in fzco might needs vara license too since you have 3d party funds, if they become strict. On the plus side, maybe banking will become an option and a simplified structure.
 
#15
Amandograde said:
hard to say, if its all in fzco might needs vara license too since you have 3d party funds, if they become strict. On the plus side, maybe banking will become an option and a simplified structure.
Click to expand...

If they make my life easier in terms of setup/license (or lack thereof) I'll drop my clients like it's hot. They are peanuts in comparison to my balance.

Still investigating...
 
#17
TheCryptoAnt said:
so imma continue with my set up until the Emirati government provides guidance on crypto trading taxes.
Based on what they say, I'll adapt.

I'll update the thread when the time comes.
Click to expand...
theres that rakdao thingy. Idk however if its any good i have not heard any feedback from folks i know and went thru so far, its fairly new but seems promising (as so often ;)).
www.rakdao.com

Welcome to RAK Digital Assets Oasis

Set up your business easily with endless possibilities in the world's first non-regulated free zone focused on web3 companies.
www.rakdao.com www.rakdao.com
 
#18
Amandograde said:
theres that rakdao thingy. Idk however if its any good i have not heard any feedback from folks i know and went thru so far, its fairly new but seems promising (as so often ;)).
www.rakdao.com

Welcome to RAK Digital Assets Oasis

Set up your business easily with endless possibilities in the world's first non-regulated free zone focused on web3 companies.
www.rakdao.com www.rakdao.com
Click to expand...

They told me that "proprietary trading digital assets" business activity is non-regulated. It does seem promising and fairly cheap (considering legal fees elsewhere), but I am not sure if this is exempt from CIT.
 
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