Fiji's Crypto Ban Aims to Thwart Illicit Finance, Prioritizes Stability Over Innovation

The Reserve Bank of Fiji (RBF) has enforced a comprehensive ban on virtual asset service providers (VASPs), effective August 30, 2025, under an amendment to the RBF Act 1983. The prohibition explicitly targets activities such as exchanging, transferring, safekeeping, or promoting cryptocurrencies, stablecoins, NFTs, and other digital tokens. Entities or individuals operating such services—whether based in Fiji or overseas—now face penalties including fines of up to $1 million or 14 years in prison. The RBF emphasized that digital assets are not recognized as legal tender in Fiji, and their use for payments or investments is illegal under the Exchange Control Act 1950 RBF cracks down on crypto, all virtual asset services now illegal in Fiji^[1].

The National Anti-Money Laundering Council (NMLC) reiterated the ban, citing risks of money laundering, terrorist financing, and proliferation financing linked to the anonymous and decentralized nature of cryptocurrencies. Council Chair Selina Kuruleca highlighted that the rapid, cross-border transactions facilitated by virtual assets make them attractive to criminal networks and extremist groups. The NMLC stated that Fiji’s current enforcement and technological infrastructure are insufficient to regulate the sector safely, aligning with a risk-based approach recommended by the Financial Action Task Force (FATF) Fiji reiterates prohibition on VASPs, cites security and financial integrity concerns^[4].

The prohibition extends to marketing or technical support for virtual assets, with the RBF warning against investment schemes promoted via social media or other channels. The bank clarified that residents cannot use local funds—such as debit or credit cards—to purchase digital assets, and unauthorized cross-border investments will incur penalties. The RBF has not issued licenses for crypto trading or investment services, reiterating that no entity is authorized to operate in this space Fiji reiterates prohibition on VASPs, cites security and financial integrity concerns^[4].

Critics argue the ban stifles fintech innovation and digital inclusion, as most Oceanian nations regulate rather than prohibit cryptocurrencies. The NMLC acknowledged potential benefits of regulated virtual assets but stressed that premature oversight without robust infrastructure could expose Fiji to vulnerabilities. The prohibition will remain in place until the country strengthens its regulatory and technological capacity, according to the NMLC Fiji prohibits crypto services: What is the Back Story?^[3].

Fiji’s stance reflects a broader focus on modernizing traditional financial systems rather than adopting a Central Bank Digital Currency (CBDC). The RBF has prioritized enhancing the National Payment System, balancing modernization with regulatory oversight to protect financial reserves and economic stability. While the ban curtails alternatives for cross-border transactions, authorities emphasize that it safeguards financial integrity and public safety .

The enforcement of the ban underscores Fiji’s alignment with international anti-money laundering standards. The NMLC, comprising representatives from the RBF, police, customs, and financial intelligence units, coordinates efforts to combat illicit financial flows. The prohibition is part of a multi-agency strategy to mitigate risks from unregulated digital finance, with penalties enforced under both the RBF Act and Exchange Control Act Fiji reiterates prohibition on VASPs, cites security and financial integrity concerns^[4].