As of March 26, 2025, the answer is YES — cryptocurrency is now legal and regulated in Vanuatu.
Download the full Virtual Assets Services Providers Act 2024 (PDF)

Vanuatu has officially joined the list of countries with a legal framework for digital assets, following the Parliament’s approval of the Virtual Assets Service Providers Act No. of 2024 (VASP Act). This law provides a clear structure for how virtual assets — including cryptocurrencies like Bitcoin and Ethereum — can be used, traded, and managed in the country.

What Does This Mean for Crypto in Vanuatu?

The new legislation legalizes the operation of crypto businesses such as:

• Crypto exchanges
• Wallet providers
• NFT marketplaces
• Custodians and brokers dealing in virtual assets

However, there’s a catch: these businesses must be licensed and comply with regulatory requirements issued by the Vanuatu Financial Services Commission (VFSC).

Key Features of the VASP Act

• Regulatory Oversight: The VFSC is now responsible for issuing licenses and enforcing rules for virtual asset service providers.
• AML/CTF Compliance: All crypto businesses must follow Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules.
• Travel Rule: Vanuatu is also aligning with the FATF Travel Rule, meaning crypto transactions must include specific user information.
• Consumer Protection: The law aims to ensure safe and transparent crypto usage — protecting users from scams or poorly run platforms.
• Not Legal Tender: Crypto is not legal tender in Vanuatu. This means it’s allowed but not officially recognized as money for settling debts.

What Counts as a “Virtual Asset”?

Under the Act, a virtual asset is defined as:

“A digital representation of value that can be digitally traded, transferred or used for payment.”

This includes most cryptocurrencies but excludes:

• Fiat currency (like the Vatu or US Dollar)
• Securities and shares
• Central Bank Digital Currencies (CBDCs)

What Happens If You Don’t Comply?

Operating without a license or failing to pay license fees can result in daily fines of VT100,000 or more. In short — you must be registered and play by the rules.

Why This Matters

The VASP Act places Vanuatu on the regional map as a forward-thinking nation that’s embracing digital finance responsibly. It brings clarity for investors, businesses, and everyday users who want to explore blockchain and crypto innovation — all while ensuring transparency and protection.

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Final Thoughts

So yes, crypto is now legal in Vanuatu, but not without rules. If you’re a business or an individual looking to operate in this space, make sure you’re licensed and comply with the new regulations.

This is a big step forward for Vanuatu — and it could position the country as a digital hub for the Pacific.

Got questions about how this applies to your crypto project? Drop them in the comments or message me directly via contact@mattdotvu.com.