Contact us for detailed consultancy

Regulatory Framework and Legal Status

• Nauru recognizes cryptocurrencies and provides legal recognition for cryptocurrency activities, including trading, storage, investment tokenizing, and DeFi services.

• The main regulatory legislation includes the Anti-Money Laundering and Counter-Terrorism Financing Act 2023, the Business Licences Act 2017, and the Companies Act 1972.

• Cryptocurrency is classified more as a commodity rather than securities under the Command Ridge Virtual Asset Authority Act 2025.

• The jurisdiction imposes no capital gains tax, inheritance tax, or wealth tax on cryptocurrency activities, creating favorable conditions for investors.

Licensing and Compliance

• Nauru offers a Virtual Asset Service Provider (VASP) licence that allows exchanges and other crypto services to operate legally.

• To obtain a crypto licence, companies must prove transparency in ownership, financial stability, and compliance with AML/CFT rules.

• Licensing requirements include a minimum authorized capital starting at AUD 25,000, appointment of AML compliance officers, and maintaining accounting records within Nauru.

• Licensed entities must comply with customer identification (KYC) protocols and implement transaction monitoring systems.

• Companies must appoint officers responsible for compliance and liaising with the Financial Intelligence Unit (FIU).

Regulatory Authority

• The Command Ridge Virtual Asset Authority (CRVAA), established under the 2025 Act, is the autonomous regulator overseeing all crypto activities in Nauru.

• The CRVAA regulates crypto exchanges, ICOs, NFTs, DeFi services, stablecoins, digital banking, and cross-border payment solutions.

• Nauru participates in international anti-money laundering standards and cooperates with bodies like Australia's AUSTRAC.

Official Documents and Policies

• The Anti-Money Laundering and Counter-Terrorism Financing Act 2023 is publicly cited as a cornerstone law.

• The Business Licences Act 2017 governs commercial registrations.

• The Command Ridge Virtual Asset Authority Act 2025 details the formation of the regulator and crypto classifications.

• The Virtual Asset Service Provider Policy outlines operational standards for crypto entities.

These frameworks collectively position Nauru as an attractive and regulated jurisdiction for virtual asset businesses, emphasizing transparency, compliance, and international cooperation.

If needed, official documents such as the Anti-Money Laundering Act, the Business Licences Act, the CRVAA Act, and the VASP policy are publicly accessible through government and legal portals.

REFERENCES:

1. https://ybcase.com/en/fintech/polucit-kriptolicenziu-v-nauru

2. https://citizenx.com/insights/cryptocom-kyc-with-nauru-passport/

3. https://www.nauru.gov.nr/media/191965/gazette_17-23.pdf

4. https://www.nauru.gov.nr/media/194026/virtual_asset_service_provider_policy.pdf

5. https://citizenx.com/insights/gucoinbase-kyc-with-nauru-passport/

6. https://www.zitadelleag.com/news/nauru-vasp-license-key-requirements-and-application-procedures-zitadelle-ag

7. https://thepaypers.com/crypto-web3-and-cbdc/news/nauru-establishes-a-crypto-asset-regulator

8. http://www.paclii.org/nr/other/NRGovGaz/2024/275.pdf

9. https://www.onesafe.io/blog/nauru-command-ridge-virtual-asset-authority-crypto

10. https://news.bitcoin.com/tiny-island-big-move-nauru-launches-crypto-oversight-authority/

Nauru is actively engaged in the cryptocurrency sector through a comprehensive regulatory framework and licensing system aimed at attracting international crypto businesses.

Here is a detailed overview of what Nauru does with crypto, supported by official documents and regulatory details:

Welcome to Nauru