Fiji Prioritizes Financial Security Over Crypto Innovation to Thwart Illicit Financing

Fiji’s National Anti-Money Laundering Council (NAMLC) has reaffirmed its prohibition on virtual asset service providers (VASPs), citing heightened risks of money laundering, terrorist financing, and proliferation financing. In a statement, the Council emphasized that cryptocurrencies’ anonymity and cross-border nature make them vulnerable to exploitation by criminal networks. “Cryptocurrencies enable rapid, anonymous transactions across borders, making them attractive for laundering illicit funds and evading detection,” the Council said. The decision aligns with Financial Action Task Force (FATF) standards but adopts a prohibition approach rather than regulation, reflecting concerns about Fiji’s limited capacity to supervise the sector.

The Council highlighted that extremist groups increasingly use digital tokens to fund operations, while proliferation financing—such as support for weapons of mass destruction—poses a grave threat. It noted that premature regulation without robust infrastructure could expose Fiji’s financial system to systemic vulnerabilities. Selina Kuruleca, the Council’s chairperson and Permanent Secretary for Justice, reiterated that the policy prioritizes protecting Fiji’s financial system and national security. “The Council’s priority remains the protection of Fiji’s financial system and the safety of its people,” she stated. The NAMLC includes representatives from the Reserve Bank of Fiji, the Fiji Police Force, and the Financial Intelligence Unit, underscoring a coordinated effort to combat financial crime.

Fiji’s Reserve Bank of Fiji (RBF) has also imposed penalties for crypto-related activities, prohibiting residents from using local debit or credit cards to purchase digital assets. The RBF clarified that digital assets are not recognized as legal tender in Fiji and warned against unregulated investment schemes promoted via social media. Violations of these rules could result in penalties under the Exchange Control Act and the RBF Act. The Council stressed that the prohibition will remain in place until Fiji strengthens its regulatory and technological frameworks, though it acknowledged that global standards and domestic capacity may prompt a review of the policy.

The ban has significant implications for cross-border transactions, as businesses previously reliant on digital assets for faster and cheaper international dealings must now use traditional banking channels. While this shift increases transaction costs and processing times, it enhances transparency and reduces risks of financial misconduct. The Council cited examples of illicit activities, including rapid, untraceable transfers that facilitate money laundering and terrorism financing. It also noted the potential for virtual assets to fund proliferation networks, such as those seeking dual-use goods or weapons.

Despite the prohibition, the NAMLC recognized the potential benefits of regulated virtual assets. However, it warned that without sufficient enforcement mechanisms, regulation could create vulnerabilities. The Council’s decision reflects a risk-based approach, prioritizing caution over innovation in a sector deemed too complex for current oversight capabilities. This stance aligns with similar policies in jurisdictions like China and Algeria, which have opted for outright bans rather than regulatory frameworks.

The prohibition underscores a broader global debate on balancing innovation with financial security. While some countries, such as the EU and Singapore, have implemented licensing regimes for VASPs, Fiji’s approach highlights the challenges faced by smaller economies with limited supervisory capacity. The NAMLC emphasized that its policy is temporary, contingent on future advancements in regulatory infrastructure. “The door is not closed forever,” Kuruleca said, “but locked until Fiji builds the right safeguards.” This flexibility positions Fiji to adapt to evolving global standards while maintaining its commitment to financial integrity.

[1] Fiji Reaffirms Ban on Crypto Service Providers Citing Money … (https://www.crowdfundinsider.com/2025/09/252029-fiji-reaffirms-ban-on-crypto-service-providers-citing-money-laundering-security-risks/)

[2] Crypto Ban in Fiji: Gov’t Cites Rising Financial Crime Threats (https://www.fxleaders.com/news/2025/09/22/crypto-ban-in-fiji-govt-cites-rising-financial-crime-threats/)

[3] The National Anti-Money Laundering Council of Fiji has reaffirmed … (https://www.mexc.com/fi-FI/news/the-national-anti-money-laundering-council-of-fiji-has-reaffirmed-that-vasps-are-prohibited-in-the-country/103252)

[4] Fiji reiterates ban on crypto services, citing money laundering and ... (https://www.odaily.news/en/newsflash/449626)

[5] No room for crypto firms in Fiji, says anti-money … (https://www.fijitimes.com.fj/no-room-for-crypto-firms-in-fiji-says-anti-money-laundering-body/)

[6] Fiji Draws a Line Against Money Laundering With Crypto Ban (https://fincrimecentral.com/fiji-ban-vasps-money-laundering-risks/)

[7] Fiji reiterates prohibition on VASPs, cites security and financial ... (https://www.cryptopolitan.com/fiji-reiterates-prohibition-on-vasps-cites-security-and-financial-integrity-concerns/)

[8] Fiji Upholds Ban on VASPs to Safeguard Financial System (https://fijiglobalnews.com/fiji-upholds-ban-on-vasps-to-safeguard-financial-system/)