TechFlow, April 1 — According to Cointelegraph, on March 26, the Parliament of Vanuatu passed the Virtual Asset Service Provider Act, authorizing the Vanuatu Financial Services Commission (VFSC) to oversee cryptocurrency licensing and regulation. The Act requires crypto firms to comply with Financial Action Task Force (FATF) standards on anti-money laundering, counter-terrorist financing, and the Travel Rule.
The new law imposes strict penalties for violations, with maximum fines of USD 2 million and up to 30 years of imprisonment. It covers businesses including cryptocurrency exchanges, non-fungible token (NFT) markets, crypto custodial service providers, and initial coin offerings (ICOs), while also allowing banks to apply for licenses to offer crypto trading and custody services. Notably, stablecoins, tokenized securities, and central bank digital currencies are excluded from the scope of this Act.
The VFSC stated that the Act will bring significant opportunities to Vanuatu and enhance financial inclusion by regulating cross-border crypto payment services.
