The National Anti-Money Laundering Council of Fiji is advocating for a nationwide ban on virtual asset service providers, citing the significant risks that cryptocurrencies pose to the country’s financial system and national security. Chairperson Selina Kuruleca highlighted concerns over the potential use of virtual assets in money laundering, terrorist financing, and the funding of weapons programs, emphasizing the alarming nature of these threats.
The Council warned that the fast-paced and anonymous nature of cryptocurrency transactions makes them appealing to both criminals and extremist groups. Given Fiji’s current regulatory framework, which is inadequate to manage the fast-evolving digital asset industry, banning these virtual assets is seen as the most secure option for now.
This stance aligns with the recommendations of the Financial Action Task Force, an international body that sets global standards for combating money laundering. Kuruleca reiterated that while the Council is committed to safeguarding Fiji’s financial system and the safety of its citizens, it also aims to support legitimate investment and economic growth.
Fiji’s decision to regulate virtual assets closely reflects similar positions held by national institutions like the Reserve Bank of Fiji. In the past, the Reserve Bank has also opted against pursuing a Central Bank Digital Currency, preferring to concentrate on modernizing the nation’s payment systems while maintaining strict oversight to protect financial stability.
The collaborative efforts to maintain financial integrity are underscored by the inclusion of high-level representatives from significant institutions such as the Reserve Bank of Fiji, the Office of the Director of Public Prosecutions, the Fiji Police Force, and the Financial Intelligence Unit in the National Anti-Money Laundering Council. This comprehensive approach reflects Fiji’s commitment to securing its financial systems against illicit activities while preparing for future challenges in the evolving digital finance landscape.
By taking these measures, Fiji demonstrates its dedication to ensuring economic resilience and security, creating a foundation for sustainable growth and innovation in the future. In focusing on both modernization and robust regulation, the country aims to carve a safe and progressive path in the digital economy.
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