Vanuatu Enacts Stringent Crypto Laws: No ‘Light Touch’ Approach

Vanuatu has taken a decisive step forward in regulating the digital asset sector, enacting comprehensive legislation that will hold crypto companies accountable. The Virtual Asset Service Providers Act, passed on March 26th by the country’s local parliament, grants the Vanuatu Financial Services Commission (VFSC) the authority to license crypto businesses and enforce international anti-money laundering and counter-terrorism financing standards with strong penalties in place. The VFSC’s enforcement powers are extensive, including fines of up to $2 million and imprisonment for up to 30 years.