06-25-2025 
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The Republic of Nauru has become the first Pacific country to establish a dedicated digital asset regulator, according to the government.
The move comes via the Command Ridge Virtual Asset Authority Act 2025, which was certified on June 17. The Act establishes the Command Ridge Virtual Asset Authority (CRVAA), named after the highest geographical point in Nauru, as an autonomous regulator in charge of ‘virtual assets, digital banking, and Web3 innovation’.
The Act says that the functions of the CRVAA include:
- Granting and suspending licenses for virtual asset service providers (VASPs) to operate
- Establishing permissible and prohibited virtual asset activities
- Regulating token issuance and exchange
- Promoting Nauru as a progressive, internationally recognized jurisdiction for virtual assets and Web3 innovation
- Ensure compliance by VASPs with international standards, including those of the Financial Action Task Force (FATF) and global data protection legislation
It also sets some foundational rules addressing specific digital asset issues. For instance, it makes clear that digital assets are presumed to be commodities rather than securities, excludes both utility and payment tokens from being classified as investment contracts, and carves out exemptions for governance and reward tokens.
It also provides a preliminary list as to which digital asset activities fall under the jurisdiction of the CRVAA. These cover virtually all digital asset activities, such as the ‘operation of centralized or decentralized virtual asset platforms,’ ‘custodial and non-custodial virtual asset wallet services,’ ‘issuance of virtual tokens,’ lending and staking, ‘stablecoin issuance and cross-border payment solutions,’ and the ‘issuance and management of e-money.’President David Adeang called the Act’s passage a “bold step” that ‘aims to harness the potential of virtual assets to diversify our revenue streams and fortify economic resilience.’
“By implementing robust oversight of [virtual asset service providers], Nauru aims to foster sustainable growth, channel new financial inflows into strategic instruments such as its Intergenerational Trust Fund, and reduce its reliance on climate financing, which is often challenging to secure.”
It’s a significant step for the Republic. According to self-reporting published by the Republic at the end of 2023, the country did not then have any institutions that provide digital asset services. The president’s comments indicate that the Act’s passing is an attempt to change that.
The focus on money laundering is also notable. According to the FATF, an intergovernmental anti-money laundering (AML) organization aimed at combating international money laundering, Nauru is a low-risk jurisdiction for money laundering and terrorist financing, noting that it already has a robust legislative framework to tackle the issue.
The Act officially went into force on the date it was certified, June 17, meaning the new regime is already underway in Nauru.
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