Fiji reiterates the ban on cryptocurrency service providers, citing money laundering and security risks

ChainCatcher news, according to the announcement from the Fiji National Anti-Money Laundering Committee (NAMLC), Fiji reaffirms its comprehensive ban on Virtual Asset Service Providers (VASP) due to the serious risks associated with cryptocurrencies in money laundering, terrorist financing, and the proliferation financing of weapons of mass destruction.

NAMLC stated that the anonymity and cross-border characteristics of cryptocurrencies make them highly susceptible to exploitation by criminals. The committee pointed out that extremist organizations have increasingly relied on crypto tokens for fundraising, and Fiji currently lacks effective regulatory and enforcement capabilities. Prematurely pushing for regulation could expose the financial system to risks. This policy is consistent with the standards of the Financial Action Task Force (FATF), but Fiji has chosen to "ban" rather than "regulate." NAMLC Chair and Permanent Secretary of the Ministry of Justice Selina Kuruleca emphasized that the committee's top priority is to protect Fiji's financial system and national security, and it will reassess its position after the regulatory and technological frameworks are improved in the future.