Vanuatu has finalized its crypto industry regulation, developed since 2020. The new law empowers the Vanuatu Financial Services Commission to regulate the crypto industry.
New Legislation
On March 26, Vanuatu’s Parliament enacted the Virtual Asset Service Provider Act, granting the Vanuatu Financial Services Commission the authority to issue licenses and regulate the crypto industry.
Details of the Legislation
According to the law, the VFSC may issue licenses to exchanges, NFT marketplaces, and custody providers. Banks can also obtain licenses for crypto exchange and custody services. The legislation does not apply to stablecoins, tokenized securities, or central bank digital currencies. Additionally, the commissioner can create a sandbox for approved companies to operate as virtual asset service providers for a year with potential for renewal.
Context and Other Nations
Vanuatu joins a growing list of countries enacting crypto regulations. Recently, the Cayman Islands updated its rules, requiring crypto firms to obtain licenses. Taiwan unveiled draft legislation for licensing crypto providers and protecting investors. Turkey introduced stricter regulations for crypto exchanges.
The Vanuatu legislation is part of a global trend to enhance crypto regulation and aims to strengthen oversight of this sector.
