Fiji Bans Virtual Assets Due to Regulatory and Technological Gaps

The Reserve Bank of Fiji (RBF) has enforced a comprehensive ban on virtual asset service providers (VASPs), citing significant risks to financial stability and national security. Effective August 30, 2025, under an amendment to the Reserve Bank of Fiji Act 1983, the provision of services related to cryptocurrency exchanges, transfers, safekeeping, and marketing of virtual assets such as Bitcoin, NFTs, and stablecoins is now prohibited. The RBF emphasized that penalties for violations include fines up to $1 million or imprisonment for 14 years.

The National Anti-Money Laundering Council (NAMLC) reiterated its support for the prohibition, highlighting that virtual assets facilitate money laundering, terrorist financing, and proliferation financing due to their anonymous and cross-border nature. Council Chair Selina Kuruleca stated that Fiji’s limited technological and regulatory capacity to enforce oversight in this sector necessitates the ban, aligning with global anti-money laundering standards set by the Financial Action Task Force (FATF). The NAMLC warned that cryptocurrencies enable rapid, untraceable transactions, which could be exploited by criminal networks.

The RBF reiterated that digital assets are not recognized as legal tender in Fiji and explicitly prohibited their use for payments or investments. Residents are barred from purchasing or trading virtual assets using local currency or cards, with violations subject to penalties under the Exchange Control Act 1950. The bank also cautioned against unlicensed investment schemes promoting crypto, noting that no entity has been authorized to offer such services.

The prohibition applies to both domestic and foreign entities operating in Fiji, effectively closing off digital assets as a cost-effective alternative for cross-border transactions. Businesses are now required to rely on traditional banking channels, which may involve higher fees and slower processing times. However, the RBF and NAMLC argue that the ban strengthens financial system integrity and safeguards citizens from fraudulent or high-risk ventures.

The RBF’s stance reflects a broader regulatory strategy to mitigate risks associated with unregulated digital finance. While the Council acknowledges potential benefits of crypto regulation, it stressed that premature oversight without adequate infrastructure would expose Fiji to vulnerabilities. The prohibition will remain in place until the country develops the necessary technological and regulatory frameworks to safely manage virtual assets.

Sources:

[1] RBF Cracks Down on Crypto: All Virtual Asset Services Now Illegal in Fiji (https://www.fijitimes.com.fj/rbf-cracks-down-on-crypto-all-virtual-asset-services-now-illegal-in-fiji/)

[2] Cryptocurrency Ban Proposed to Safeguard Fiji’s Economy (https://www.fbcnews.com.fj/news/cryptocurrency-ban-proposed-to-safeguard-fijis-economy/)

[3] Fiji Prohibits Crypto Services: What Is the Back Story? (https://www.livebitcoinnews.com/fiji-prohibits-crypto-services-what-is-the-back-story/)

[9] Fiji Reiterates Prohibition on VASPs, Cites Security and Financial Integrity Concerns (https://www.cryptopolitan.com/fiji-reiterates-prohibition-on-vasps-cites-security-and-financial-integrity-concerns/)