VANUATU issued laws to regulate digital assets and provide a license system for encryption companies that want to work in the Pacific Island area, which was called by a “very strict” government organizational advisor.
The local parliament approved the apparent asset service providers law on March 26, which granted the encryption licensing authority to the Finuatun Financial Services Committee (VFSC), as well as powers to implement the financial work division to combat money laundering, financing anti -terrorism, terrorist financing and funding Travel base Standards with encryption companies.
VFSC has overwhelming investigation and enforcement powers under laws, as penalties stipulates fines of up to 250 million Vatu (two million dollars) and up to 30 years in prison.
“God helps any deception that goes to Vanu’u because you will go to prison,” Lorita Joseph, who consulted with the organizer of the laws. “The laws are very strict.”
“The thing is that we do not want another FTX disaster,” she added, referring to the exchange of encryption that was headquartered in the Bahamas that collapsed in 2022 due to the massive fraud committed by its founders, Sam Bankman Farid, Gary Wang, along with other executives.
Joseph said: “Vanuato is a small judicial jurisdiction. Small judicial states are directed by players looking for any list or regulation of light touch,” Joseph said. “This is definitely not.”
She added: “I am very proud of them to be the first country in the Pacific Ocean who is already taking a position and doing so.”
The new Vanuatu law regulates a list of encryption companies
The law creates a license Reporting For exchanges, the distinctive code markets (NFT), and the codes of encryption and primary currency shows.
The law in particular allows banks to be licensed to provide encryption and custody exchange services. Source: Parliament of the Republic of Vanuato
VFSC said that the legislation does not affect Stablecoins, Distinguished SecuritiesAnd digital currencies of the Central Bank although they “may participate in practice in some similarities with virtual assets.”
The legislation also allows the VFSC Commissioner to create a sand box to allow the approved companies to provide a variety of encryption services for a year, which can be renewed.
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Joseph said that Vanooo “needed independent legislation” that covered the requirements for money laundering and the requirements of anti -concepts, as the country had no current laws appropriate to virtual assets.
Organizer He said In a March 29 statement that the legislative framework has developed years after “assessing the risk associated with virtual assets”, and the laws will open “many opportunities for Vanuato” and improve financial inclusion by allowing the services regulating encryption Border payments.
” The bill was expected to pass In September, but Joseph said the legislation “is not something lightly done.” It has been under development since 2020 and was delayed due to changes in government and natural disasters and Covid-19 disorders.
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