World Crypto Global
- Written by: Tareq Sikder
- Thu, 27 Jun 2024
- Israel
The Pacific Island nation of Vanuatu expects to endorse adigital asset and service provider bill in September. Branan Karae,Commissioner of the Vanuatu Financial Services Commission (VFSC), announcedthis at a digital assets symposium organized by the country's financialregulator on June 27. The bill is expected to be enacted during the first weekof Parliament.New Legislation to Regulate Virtual Asset ServicesLoretta Joseph, a VFSC policy consultant and speaker at theconference, stated that the bill had been ready for several years but faceddelays due to multiple cabinet changes. The bill, first introduced in 2020,will establish licensing and registration requirements for virtual assetservice providers (VASPs), allowing them to operate legally within the nation.Joseph explained that the bill will help Vanuatu meetstandards set by the Financial Action Task Force (FATF). The FATF mandates thatcountries assess and mitigate risks associated with crypto service providersand activities. The FATF is calling on countries to have legislation aroundvirtual assets. No country in the world can ignore this, Joseph said.The proposed act includes five license classes, coveringservice providers that exchange virtual assets and fiat currencies and thoseoffering crypto custody, among other functions. The VFSC will monitor all VASPsto ensure adherence to Anti-Money Laundering and Counter-Terrorism financinglaws. The Commissioner will have the authority to veto licenses and appointinspectors to ensure compliance.#Vanuatu is set to pass a long-awaited digital asset and service provider bill in September, establishing licensing and registration requirements for virtual asset service providers (#VASPs) to operate legally. The bill, delayed due to several cabinet changes, aims to meet pic.twitter.com/sK8l5YswBX TOBTC (@_TOBTC) June 27, 2024Launching Fintech SandboxThe act also introduces a Fintech Sandbox Utility,allowing companies to operate for 12 months without a license initially. Theact mandates that any person conducting VASP activities must be licensed, withpenalties including fines of 25 million Vanuatu vatus ($207,700) orimprisonment for 15 years. Corporations can face fines of $2.1 million.Vanuatu, located in the South Pacific Ocean and consistingof 13 principal islands, had a gross domestic product of $1.1 billion in 2022,according to the World Bank. The economy is primarily based on agriculture,with 80% of the population engaged in agricultural activities. It is alsoregarded as a tax haven and international financial centre, according to the USState Department. The country hosts around 2,300 registered institutionsoffering offshore banking, legal, accounting, insurance, and trust services.This article was written by Tareq Sikder at www.financemagnates.com.
