Vanuatu, a Pacific Island nation, is set to pass a digital asset and service provider bill in September. The bill, which has been in the works for several years, will establish licensing and registration requirements for virtual asset service providers (VASPs) in the country. This will allow them to operate legally within Vanuatu and meet the standards set by the Financial Action Task Force (FATF), an intergovernmental body that assesses and mitigates risks associated with crypto service providers. The bill will cover five license classes, including those that provide exchange services and crypto custody. The Vanuatu Financial Services Commission (VFSC) will monitor VASPs’ activities to ensure compliance with Anti-Money Laundering and Counter-Terrorism financing laws. The Commissioner will have the power to veto licenses and appoint an inspector. The bill also includes a “Fintech Sandbox Utility” that allows companies to operate without a license for 12 months. Violators of the licensing requirement may face fines or imprisonment. Vanuatu, known for its offshore financial services, hopes that the bill will boost its economy and solidify its position as an international financial center. The country currently has around 2,300 registered institutions offering various financial services.
Vanuatu anticipates finalizing its longawaited cryptocurrency legislation by September