In an official communication to the public, the central bank of Fiji, an island nation in the Pacific Ocean, issued a warning regarding the non-legal tender status of cryptocurrencies and virtual assets, including Bitcoin, Ethereum, and Tether.
The Reserve Bank of Fiji has made it clear that it is against the law for anybody to use fijian currency to buy or invest in cryptocurrency.
The Reserve Bank of Fiji’s notes and coins are the only legal money in Fiji, according to the RBF Act (1983), which the bank emphasized to the public. From 1867 until 1873, the Fijian dollar served as the currency of Fiji. Since 1969, it has also served as the currency of Fiji.
The RBF Act (1983) and the Exchange Control Act (1950) provide sanctions on those who violate the central bank’s position regarding the usage and marketing of cryptocurrencies.
While no Pacific island nation has yet formally adopted a cryptocurrency or stablecoin, four nations—Vanuatu, Solomon Islands, Fiji, and Palau—have been investigating the possibility of CBDCs. Cash is the primary means of payment for most Fijians on a daily basis.
It has come to light that certain firms in Fiji are advertising cryptocurrency investment schemes on social media and other platforms, according to Governor Ariff Ali of the Reserve Bank of Fiji.
According to Ali, nobody in Fiji has the proper authorization or license to provide crypto investments or deal in virtual assets.
Consequently, the bank warned that people in Fiji should not get involved in any cryptocurrency investment or trading schemes that are being advertised.
The fact that over 40 nations advanced crypto-focused laws and regulations in 2023 became public knowledge last year, suggesting a rising worldwide trend towards greater acceptance of cryptocurrencies.
A number of nations have started different projects to create cryptocurrency-specific laws and regulations, according to 2023 research by professional services company PriceWaterhouseCoopers (PwC).
According to the PwC research, the main areas of emphasis for the regulatory activities include stable coin regulation, travel rule compliance, licensing and listing guidelines, and the building of a comprehensive crypto framework.
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