On March 26, Vanuatu’s parliament passed the Virtual Asset Service Providers Act, empowering the Vanuatu Financial Services Commission (VFSC) to enforce strict regulations in the cryptocurrency sector.

The new laws include severe penalties, with fines up to 250 million vatu (about 2 million USD) and potential prison sentences of 30 years for those who break the rules, aiming to deter fraud.

The proactive stance by Vanuatu is designed to attract legitimate crypto enterprises while discouraging scams, referencing lessons learned from past failures like the collapse of FTX.