Fiji renews crypto ban to protect national security and economy, citing risks of money laundering, terrorism funding, and lack of regulatory resources.
Fiji, a tropical island nation in the South Pacific, is famous for its beautiful beaches, clear waters, and friendly tourism industry. However, as the country persists in receiving international tourists, it is also not accommodating of cryptocurrencies. Fiji National Anti-Money Laundering Council recently retracted a ban on all virtual asset service providers (VASPs), such as crypto exchanges and other businesses in this area, recently.
Fiji Flags Crypto as Threat to National Security
As per the local news, the Council is extremely concerned with the threats cryptocurrencies may pose to the financial system and national security of Fiji. Chairperson Selina Kuruleca described how the digital assets grow fast as they allow abuse. She cautioned that virtual currencies will be easily laundered and used to fund terrorism and even illicit arms initiatives.
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Consequently, the Council feels that the best option in the protection of Fiji is to have VASPs banned. According to Kuruleca, fast international payments using cryptocurrencies can be performed anonymously, which is why they are appealing to criminals and extremist organizations. She proceeded to say that Fiji does not have the resources and infrastructure required to effectively regulate the crypto industry.
Moreover, the decision is in line with those provided by the Financial Action Task Force (FATF), a global organization that establishes international guidelines in stopping money laundering and terrorist financing. The Fiji government is opting to abide by FATF provisions in order to ensure the credibility and security of the financial system in Fiji.
Moreover, the Council pointed out that the ban does not aim at shutting out all innovation. According to Kuruleca, the government has been determined to promote legal investments and the growth of the economy. But, in the case of virtual assets, risks are still greater than the possible benefits- at least in the present case.
Fiji Reaffirms Crypto Ban to Preserve National Security
Such a tough position can be a disappointment to other individuals and in particular, crypto investors and firms that would like to do business in the Pacific region. Over the past years, there have been countries which celebrated cryptocurrency as one of the methods to expand financial accessibility and receive foreign investments.
For example, other neighbouring countries such as Vanuatu and Tonga have already started to consider the digital finance initiatives. However, Fiji is going on a more conservative course.
Conversely, numerous specialists consider that the decision of Fiji is quite rational. The economic base of the country is developing, and the regulation of digital assets needs high-level technologies, training of the staff, and their strict control. In the absence of such tools, the possibility of an illegal activity grows significantly.
The Fiji economy mainly depends on tourism. The government wants to keep Fiji’s image safe and stable for travelers and investors. Any significant scandal of crypto-related crime would hurt that image.
To sum it up, the leaders of Fiji are assuming a bold stand on online assets. With the renewal of the ban on crypto in the country, they believe they will be safeguarding the economy and the citizens of the nation against potential damage.
While this move could restrict blockchain innovation in the short run, the officials do not feel that this is a necessary action towards long-term stability and safety. With the changing environment of global cryptocurrency, Fiji might rethink the policy, but until then, the ban remains heavily enforced.
Source: https://www.livebitcoinnews.com/fiji-reaffirms-crypto-ban-citing-risks-to-security-and-economy/
