Vanuatu has just put in place laws to regulate digital assets and establish a licensing framework for cryptocurrency companies wishing to operate in the Pacific island nation.
A government regulatory advisor has described these laws as very strict.
The local parliament enacted the Virtual Asset Service Providers Act on March 26, giving the Vanuatu Financial Services Commission (VFSC) the authority to license cryptocurrency companies and enforce Financial Action Task Force standards for anti-money laundering, counter-terrorist financing and the travel rule.
The VFSC has broad investigative and enforcement powers under the new laws, which include penalties of up to 250 million Vatu ($2 million) and prison sentences of up to 30 years.