Fiji reaffirms blanket ban on virtual asset service providers

On September 24th, according to the announcement of the Fiji National Anti-Money Laundering Committee (NAMLC), Fiji reaffirmed its comprehensive ban on virtual asset service providers (VASPs), citing the serious risks of cryptocurrencies in money laundering, terrorist financing, and weapons of mass destruction proliferation financing.
The NAMLC said that the anonymity and cross-border nature of cryptocurrencies make them highly vulnerable to criminal exploitation. The Commission noted that extremist groups have become increasingly dependent on crypto tokens for funding, and that Fiji currently lacks effective regulatory and enforcement capabilities. Pushing ahead with regulation too early could expose the financial system to risk. The policy is in line with Financial Action Task Force (FATF) standards, but Fiji has chosen to "prohibit" rather than "regulate". Selina Kuruleca, Chair of the NAMLC and Permanent Secretary of the Ministry of Justice, stressed that the Commission's priority is to protect Fiji's financial system and national security, and will evaluate its position when the regulatory and technical framework is developed in the future.