Fiji's Crypto Ban: Security Over Innovation in Digital Age

Fiji’s Reserve Bank of Fiji (RBF) has implemented a comprehensive ban on all cryptocurrency and virtual asset services, effective 30 August 2025, under an amendment to the Reserve Bank of Fiji Act 1983. The legislation prohibits activities such as exchanging, transferring, safekeeping, selling, or marketing virtual assets—including Bitcoin, stablecoins, NFTs, and other digital tokens—to residents of Fiji. The RBF emphasized that the prohibition applies to both domestic and foreign entities, with violators facing penalties of up to $1 million in fines or 14 years in prison RBF cracks down on crypto, all virtual asset services now illegal in Fiji^[1].

The National Anti-Money Laundering Council (NAMLC) has endorsed the ban, citing risks posed by cryptocurrencies to Fiji’s financial system and national security. Council Chair Selina Kuruleca highlighted the potential for virtual assets to facilitate money laundering, terrorist financing, and the proliferation of weapons programs, noting that rapid, anonymous cross-border transactions make them attractive to criminal and extremist groups. The council argued that Fiji’s limited capacity to regulate the rapidly evolving sector necessitates prohibition as a precautionary measure, aligning with guidelines from the Financial Action Task Force (FATF), the global anti-money laundering watchdog Cryptocurrency ban proposed to safeguard Fiji’s economy^[2].

The law’s scope is broad, criminalizing not only direct services like cryptocurrency exchanges but also advertising, technical support, and promotional activities for virtual assets. It explicitly excludes digital substitutes for fiat currency (e.g., mobile money) and traditional securities regulated under other legislation, indicating a targeted approach to unregulated decentralized instruments Has Fiji Banned Crypto: Innovation Halted or Risk Averted?^[3]. The RBF stated the prohibition aims to protect the public and financial system from risks associated with unregulated virtual currencies, including volatility and fraud Fiji prohibits crypto services: What is the Back Story?^[4].

Penalties for violations are severe, with the RBF emphasizing that the law’s enforceability under Section 22(2) of the amended act ensures strict compliance. The ban extends internationally, penalizing foreign firms operating online if they provide services to Fijian residents. This approach positions Fiji as one of the strictest jurisdictions in the Oceania region, contrasting with regulatory frameworks in countries like Australia and New Zealand, which have opted for oversight rather than prohibition RBF cracks down on crypto, all virtual asset services now illegal in Fiji^[1].

The ban has significant implications for fintech businesses and investors. Immediate operational shutdowns are required for any crypto-related ventures in Fiji, with foreign exchanges reassessing expansion plans. While the RBF has not clarified whether owning digital assets is illegal, legal uncertainty remains for Fijian investors who participated in foreign markets. Analysts note that the move may deter innovation and economic diversification but could also mitigate systemic risks in a small economy vulnerable to financial shocks Has Fiji Banned Crypto: Innovation Halted or Risk Averted?^[3].

Fiji’s decision underscores a strategic divergence from regional peers, potentially influencing other small island nations grappling with crypto’s growing influence. The RBF’s focus on financial integration and stability reflects a prioritization of security over technological experimentation, aligning with global trends where regulatory caution is increasing amid rising concerns over crypto’s misuse.