The Republic of Nauru has become the first country in the Pacific region to establish an independent body for regulating digital assets – the Command Ridge Virtual Assets Authority (CRVAA). From now on, a special regulator will operate within the state to oversee the development of the cryptocurrency market, digital banking, and the implementation of Web3 technologies.
This is reported by Бізнес • Медіа
CRVAA: A New Phase in the Development of Nauru’s Financial Sector
Named after the highest point on the island, the CRVAA has been granted the authority to license virtual asset service providers (VASP). This opens up opportunities for companies to officially register in Nauru and operate in the field of digital assets.
Particular attention in the CRVAA’s work is given to AML compliance, adherence to cybersecurity standards, monitoring financial transactions, and ensuring financial transparency at the international level. An important feature of the legislation is the clear distinction between tokens: cryptocurrencies are classified as goods rather than securities, and payment or utility tokens are not considered investment contracts. This creates clear conditions for business and helps avoid misinterpretation of crypto assets.
Future Strategy: Nauru as a Web3 Hub
The country’s leadership emphasizes innovative approaches to the economy and diversification of income sources. Nauru’s President David Adeang highlighted that the launch of the CRVAA is an important strategic step towards strengthening Nauru’s economic resilience, which is listed among the most vulnerable countries in the world according to the UN MVI index.
“We strive to be a government of solutions and innovations, to be proactive rather than passive, and to look to the future with courage,” said Adeang.
The Minister of Trade and Foreign Investment, Maverick Eoe, stressed that more and more countries recognize the significant potential of virtual assets in developing decentralized finance (DeFi). In his opinion, the new bill will secure Nauru’s place among the leaders of the digital economy, paving the way for the country to gain additional revenue from innovative technologies.
It is worth mentioning that Nauru was previously featured in the plans of Gabe Bankman-Fried, brother of FTX exchange founder Sam Bankman-Fried, who considered the possibility of purchasing the island to create a “bunker for the apocalypse” funded by the bankrupt exchange.