Is Crypto Legal in Vanuatu?

Cryptocurrency is legal in Vanuatu following the passage of the Virtual Asset Service Providers Act on March 26, 2025, establishing a comprehensive regulatory framework for digital assets (1). The Vanuatu Financial Services Commission serves as the primary authority to regulate digital assets and issue licenses to service providers including exchanges, NFT marketplaces, crypto custody providers, and initial coin offerings (1). Virtual assets are defined as digital representations of value that may be traded and function as a medium of exchange, unit of account, or store of value, though they are not recognized as legal tender (1).

The legislation grants the VFSC extensive investigative and enforcement powers to ensure compliance with international standards including the Financial Action Task Force's anti-money laundering, counter-terrorism financing, and travel rule requirements (1). Penalties for violations can reach up to 250 million vatu (approximately $2 million) and imprisonment for up to 30 years (1). The Reserve Bank of Vanuatu previously issued warnings in 2018 advising against cryptocurrency involvement, stating that cryptocurrencies were considered illegal under the RBV Act as they are not compatible with normal central banking currency business (2).

"The RBV as the sole monetary authority maintains that the Vatu currency remains the only legal tender that trades with other international recognized currencies. Cryptocurrencies are not recognized medium of exchange in Vanuatu."

The new regulatory framework allows banks to obtain licenses to offer crypto trading and custody services, marking a significant shift from the Reserve Bank's previous stance (1). The legislation permits the VFSC commissioner to create a fintech sandbox utility enabling approved companies to offer various crypto services for one year with the possibility of renewal (1). Vanuatu became the first country in the Pacific region to establish such comprehensive cryptocurrency regulations, opening opportunities for economic growth while ensuring adherence to international regulatory standards (1).

Source:
https://www.vfsc.vu/wp-content/uploads/2025/07/Digital-Assets-Virtual-Assets.pdf
https://www.rbv.gov.vu/images/Press_Releases/2018/PR10%20-RBV%20Stance%20on%20the%20cryptocurrencies.pdf

Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.