Vanuatu has officially enacted its crypto regulation and licensing framework, joining a growing list of nations implementing regulatory oversight for virtual asset service providers.

Vanuatu has finalized its crypto regulation and licensing framework, which has been in development since 2020. On March 26, Vanuatu’s Parliament passed the Virtual Asset Service Provider Act, endowing the Vanuatu Financial Services Commission with the authority to issue licenses and regulate the crypto industry, as originally reported by Finance Magnates.

According to the bill, the VFSC may issue licenses to exchanges, NFT marketplaces, and custody providers. It also permits banks to obtain licenses for offering crypto exchange and custody services. The legislation doesn’t apply to stablecoins, tokenized securities, and central bank digital currencies.

The legislation also allows the commissioner to create a sandbox environment to enable approved companies to operate as virtual asset service providers for a year, with the possibility of renewal.

Vanuatu is the latest in a growing list of countries that have recently introduced or updated their crypto regulation and licensing frameworks.

Earlier this month, Cayman Islands, another well-known offshore financial hub with favorable tax policies, updated its crypto licensing rules, requiring VASPs to obtain a license from the Cayman Islands Monetary Authority starting April 1.

On March 25, Taiwan’s Financial Supervisory Commission unveiled the draft of its VASP act, outlining licensing provisions for crypto asset service providers, standards for stablecoin issuance, and various investor protection measures. On March 13, Turkey also advanced its crypto regulations by introducing stricter rules for crypto asset service providers.