Nauru’s tiny nation of the Pacific nation has adopted legislation to establish a regulatory authority for virtual assets covering crypto, digital bank and web3 innovation, aimed at becoming a cryptographic center.
Nauru is a sovereign state of the Western Pacific island in micronesia, northeast of Australia, with an estimated area of 21 square kilometers and a population of around 12,500 people. It is the third smallest country in the world and the smallest island nation in the world.
The bill legislate the Ridge Virtual Asset Authority Command (CRVAA), which will be responsible for supervising a license program for cryptographic companies to register and offer their services using Nauru as a base, Nauru government said on Tuesday.
Crypto and not titles under the invoice
Under the legislation, the crypto is defined as a commodity, and not as a guarantee, and the payment tokens are excluded from the status of an investment contract.
A range of cryptographic activities, such as the exploitation of cryptography exchanges, offers of initial parts, non -buttocks, loans, loss, agriculture and other decentralized financing services, will now be subject to CRVAA authorization.
The CRVAA will also supervise stable issuing, cross -border payment solutions and digital banks.
Make game to be the leader in digital assets
Nauru president David Adeang said hope is that regulations will open the way to the nation to become a leader in digital assets in the Oceania region.
Before legislation, crypto trading was legal in Nauru, but there was no specific monitoring, rules or regulations to go on how it was used.
At the same time, Adeang said that Nauru is considered one of the most risky nations in the region, under the United Nations multidimensional vulnerability index, for increased exposure to economic shocks.
“This daring step aims to exploit the potential of virtual assets to diversify sources of income and strengthen economic resilience,” he said.
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“By implementing a solid monitoring of vasps, Nauru aims to promote sustainable growth, channel new financial entries in strategic instruments such as its intergenerational fiduciary fund,” added Adeang.
Sam Bankman Fried’s brother wanted to buy Nauru once
The brother of the former FTX CEO, Sam Bankman, had once planned to buy Nauru and build a Doomsday bunker.
The program was revealed in a memo during a trial in July 2023 detailing the younger brother of Bankman Fried, Gabriel, and a conspiracy of the FTX Foundation without names to buy the island using funds from the exchange of crypto now disappeared.
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