Seychelles Financial Services Authority rejects CodeSphere Limited’s VASP application and warns CoinCraddle operations are illegal

The Seychelles Financial Services Authority issued a public statement confirming that it has rejected CodeSphere Limited’s application for approval as a virtual asset service provider under the Virtual Asset Service Providers Act, 2024. The firm, which trades as CoinCraddle, was formally instructed to cease all operations immediately, but has continued to provide virtual asset services. Given the continued activity, the authority deems CodeSphere Limited’s services illegal and in direct violation of the Virtual Asset Service Providers Act, 2024. The statement warns that any person or entity doing business with or through CodeSphere Limited is engaging in unlawful activity and may face legal consequences or may not be afforded protections under Seychelles consumer protection laws, and notes that enforcement actions are being pursued against the company and associated individuals or entities involved in the continued operation.