The small Pacific nations in Nauru have passed legislation to establish a dedicated virtual asset regulator covering cryptocurrency, digital banking and Web3 innovations, aiming to be a cryptocurrency hub.
Nauru is the sovereign state of the Western Pacific island of Micronesia in northeastern Australia. It is estimated to have an area of 21 square kilometers and a population of about 12,500 people. This is the third despicable country in the world and the smallest island country in the world.
The bill legislates the Command Ridge Virtual Assets Administration (CRVAA) which will oversee the licensing program Encryption company registration and provide services based on Nauru, the Nauru government explain In a statement Tuesday.
Securities under crypto notes
Under legislation, cryptocurrencies are defined as commodities, not guarantees, and payment tokens are excluded from the state of the investment contract.
A series of encryption activities, such as operational encryption communication, Initial coin productloans, credits, and other decentralized financial services will now be authorized by the CRVAA authorization.
CRVAA will also supervise Stablecoin releasecross-border payment solutions and digital banking.
Make drama a digital asset leader
Nauru President David Adeang said he hopes the regulations will pave the way for the country to become a digital asset leader in Oceania.
Prior to legislation, cryptocurrency trading Once was Nauru is legal, but does not have any specific supervision, rules or regulations to govern how it is used.
Meanwhile, Adeang said that Nauru Below United Nations Multidimensional Vulnerability Index to increase exposure to economic shocks.
“This bold step is designed to leverage the potential of virtual assets to diversify revenue streams and increase economic resilience,” he said.
Related: Vanuatu passes long-awaited encryption laws that won’t be “light touch”
“By implementing strong oversight of VASP, Nauru’s goal is to promote sustainable growth and introduce new financial inflows into strategic tools such as its intergenerational trust funds,” Adeang added.
Sam Bankman Fried’s brother wants to buy Nauru
The brothers of former FTX CEO Sam Bankman Fried once had plans Buy Nauru and build a doomsday bunker.
The plan revealed in a July 2023 memorandum Now closed crypto exchange.
