Vanuatu has taken a significant step in enhancing oversight of digital assets by completing its cryptocurrency regulatory framework.
New VASP Law
Recently, the Vanuatu Parliament passed the Virtual Asset Service Provider (VASP) Act, granting the Vanuatu Financial Services Commission (VFSC) the authority to license and regulate the crypto industry.
Regulatory Features
The act empowers the VFSC to issue licenses to crypto exchanges, NFT marketplaces, and custody providers. It excludes stablecoins, tokenized securities, and central bank digital currencies. A sandbox environment allows companies to test services under controlled conditions.
Global Context
Vanuatu's regulatory updates occur alongside similar initiatives in other countries like the Cayman Islands, Taiwan, and Turkey, highlighting a global trend towards increased cryptocurrency oversight. This aligns with growing institutional interest in cryptocurrencies worldwide.
Vanuatu's measures to regulate the cryptocurrency sector are an important part of the growing international trend towards organizing and increasing transparency in crypto markets.
