The small Pacific country of Nauru passed the law to promote a dedicated virtual asset regulation authority that covers crypto, digital banking and web3 changes, aimed at becoming a crypto hub.
Nauru is a Western Pacific of Sovereign of Pacific Island in Micronesia, northern -east of Australia, with an estimated area of 21 square square and a population of approximately 12,500 people. It is the third smallest country in the world and the smallest island of the world.
The bill is married to the Command Ridge Virtual Asset Authority (CRVAA), which will hold the administration of a licensing scheme for Crypto companies to register and offer their services using Nauru as a base, Nauru’s government Says In a statement on Tuesday.
Crypto is not security under the bill
Under the law, crypto is defined as a commodity, not a security, and payment tokens are not included in the investment contract status.
A set of crypto activities, such as running crypto exchanges, Initial coins.
CRVAA will be on guard too Issuing StablecoinCross-border payment solutions, and digital banks.
Making a playing to become a leader of digital asset
Nauru president David Adeang said hoping that the regulation would allow the country to become a head of digital assets in the Oceanian region.
Before the law, the Crypto trading Ay Legal in Nauru, but no specific supervision, policies or regulations to manage how it is used.
At the same time, Adeang said Nauru was considered one of the most risky countries in the region, under The United Nations multidimensional vulnerability index, for a higher exposure to economic shocks.
“This brave step aims to use the potential of virtual ownership to change -change the streams of income and strengthen economic stability,” he said.
Related: Vanuatu passes the long -awaited crypto laws that will not be ‘light touch’
“By implementing the stable administration of the Vasp, Nauru aims to protect the sustainable growth, to recharge new financial flow to strategic instruments such as the Intergenerational Trust Fund,” Adeang added.
Sam Bankman-Fried brother wants to buy Nauru once
The brother of former FTX CEO Sam Bankman-Fried has a plan to Buy Nauru and build a Doomsday bunker.
The scheme was revealed in a memo during the July 2023 lawsuit detailing Bankman-fried brother Gabriel, and an unnamed FTX Foundation Executive’s Plot to buy an island using funds from the Now-defunct crypto exchange.
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