The Republic of Nauru has become the first Pacific to set up a dedicated digital asset regulator, in accordance with to the government.
The move comes via Command Ridge Virtual Asset Authority Act 2025which was certified on June 17. The law establishes Command Ridge Virtual Asset Authority (CRVAA), named after the highest geographical point in Nauru, as an autonomous regulator responsible for “virtual assets, digital bank and Web3 innovation’.
The law says the features of CRVAA include:
- Grant and cancel licenses for virtual suppliers of asset services (VASP) to operate
- Establish allowed and prohibited virtual asset activities
- Regulation of token issue and exchange
- Promote Nauru as a progressive, internationally recognized jurisdiction for virtual assets and web3 -Innovation
- Ensure VASPs comply with international standards, including those in Financial action group (FATF) and global legislation on data protection
It also establishes certain basic rules that deal with specific digital asset issues. For example, it makes it clear that digital assets are assumed to be goods rather than securitiesExcludes both usability and payment tokens from being classified as investment contracts and prevents exemptions for governance and reward tokens.
It also provides a preliminary list of which digital asset activities fall under CRVAA’s jurisdiction. These covers virtually all digital asset activities, such as’ operation of centralized or decentralized virtual asset platforms, ” Custodial and non-custodial virtual asset wallet services, ” emission of virtual tokens, ‘lending and effort’, ‘Stablecoin Emission and cross -border payment solutions‘And’ emission and handling of e-money. ‘
President David Adeang called the passage of the law a “bold step” which “aims to utilize the potential for virtual assets to diversify our income flows and strengthen the economic resilience.”
“By conducting robust monitoring of (virtual suppliers of asset services), Nauru aims to promote sustainable growth, channel new financial inflows to strategic instruments such as its intergenerational trust fund and reduce its dependence on climate financing, which is often challenging to secure.”
It is a significant step for the Republic. According to self -reporting published by the Republic at the end of 2023, the country had no institutions that provide digital asset services. The president’s comments indicate that the passing of the law is an attempt to change it.
The focus on money laundering is also remarkable. In accordance with For FATF, an intergovernmental anti -money wash (AML) organization aimed at fighting international money laundering, Nauru is a low -risk jurisdiction for money laundering and terrorist financing and notes that it already has a robust legislative framework to deal with the issue.
The law officially came into force on the date of it, June 17, which means that the new regime is already going on in Nauru.
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