Nauru has announced the establishment of the first regulator for virtual assets in the Pacific. The new body, the Command Ridge Virtual Asset Authority (CRVAA), will oversee cryptocurrency and digital banking operations.
Creation of Command Ridge Virtual Asset Authority
On June 17, Nauru passed legislation to create the CRVAA, which will serve as an autonomous body responsible for overseeing cryptocurrencies, digital banking, and Web3-related services.
Classification of Cryptocurrencies and Tokens
Under the new law, cryptocurrencies will be classified as commodities rather than securities. Utility and payment tokens are excluded from investment contract status, and governance tokens are recognized as instruments conferring voting rights within protocols.
Prospects and Goals of the New Legislation
Nauru's President David Adeang stated that the new legislation would help diversify revenue streams and improve economic resilience. Commerce Minister Maverick Eoe noted that the regulatory framework would make Nauru competitive alongside leading digital economies.
The creation of the CRVAA in Nauru marks a significant step in regulating virtual assets in the region, potentially attracting investment and creating new job opportunities.
