Yigit Taha OZTURK 
The Pacific island nation Vanuatu has passed legislation to regulate digital assets and establish a licensing regime for crypto companies. The Virtual Asset Service Providers Act, passed on March 26, grants crypto licensing authority to the Vanuatu Financial Services Commission (VFSC) and mandates compliance with anti-money laundering and counter-terrorism financing standards.
Strict Penalties Introduced
The new law enforces:
- Fines up to 250 million vatu ($2 million)
- Prison sentences of up to 30 years
Government consultant Loretta Joseph warned that “God help any scammer that goes into Vanuatu because you’ll go to jail.”
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She emphasized the goal of preventing scandals like the FTX collapse, stating, “This is certainly not a light-touch regulation; it is very strict.”
Mandatory Licensing for Crypto Firms
The law applies to:
- Exchanges
- NFT marketplaces
- Crypto custody providers
- Initial coin offerings (ICO)
Additionally, banks can obtain licenses to offer crypto custody and exchange services.
The VFSC clarified that stablecoins, tokenized securities, and central bank digital currencies (CBDCs) are not affected by the law.
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