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Vanuatu Is Bringing Crypto to Life
The Republic of Vanuatu has recently become a good place for those interested in the offshore business, attracting especially those investors whose interest is to run a non-resident digital business from some other country, in fact, it is one of the most popular countries in this regard.
In this sense, not long ago the authorities of this country became interested in the world of cryptocurrencies, causing the legislation for digital assets to undergo some changes to make it a little broader and to cover other areas that have been gaining relevance in recent years.
After the passing of this law, Vanuatu simply became an attractive place for those interested in the world of cryptocurrencies and digital assets, as the country now offers a Financial Dealers License that covers everything related to it.
The Vanuatu Financial Service Commission (VFSC), which is the official regulator of non-banking financial services matters in Vanuatu, established this amendment to the legislation divided into 4 classes: A, B, C, D.
Class D licence is the one related to digital assets and authorises to provide a "distribution service, secondary trading, custodial storage, provision of investment advice or other services in relation to digital assets" in order to clarify the licences granted to stakeholders specialising in digital assets, especially cryptocurrencies.
It is worth mentioning what the VFSC considers to be a digital asset: "any token in electronic/binary form which is representative of either the holder's access rights to a service or of the ownership of an asset".
The aim is to give a specific character to this law with respect to the definition of digital assets to include especially the cryptocurrency business, given that it is a booming industry that in the future might occupy large spaces in the world economy, so Vanuatu clearly does not want to miss the opportunity.
Also in this new law, it is mentioned that a digital asset includes a digital representation of value that meets the following characteristics:
-It is used as a medium of exchange, united of account, or store of value but which is not legal tender, even if it is denominated legal tender.
-Represents assets such as debt or equity in the promoting company
-Provides access to a blockchain-based application, service or product.
Digital assets, while they may occupy a fairly general amalgamation, even of blockchain technology itself, but most of their use comes from cryptocurrencies such as Bitcoin, Ethereum or others also known within this industry.
The main function of this new legislation is to increase the capabilities for licensed companies in Vanuatu, in order to promote further sustainable economic growth within the country through foreign investment.
Advantages and Opportunities
Currently, the cryptocurrency industry is suffering severe regulations in the legislations of the European Union and the United States, which are practically the epicentres of the world economy, so this opens a window of opportunity for countries like Vanuatu that give a little more freedom to this sector.
It is most likely that in the next few years due to this new law we will see an exponential growth of this industry in this country, and also that other countries with the fiscal characteristics of Vanuatu will join this initiative.
We also know that more than 20 billion dollars are moved daily within the Bitcoin network, without counting other cryptocurrency networks, which leaves no doubt about the lucrative power of cryptocurrencies.
In summary, we might look at it as:
Financial Dealers Licence
Time to get it
0% on offshore profits
Needed: an office, local directors, having a team on the ground must be the objective
However, for all these benefits there are some requirements to be fulfilled within the Vanuatu legislation. These cryptocurrency licenses are generally included in the scope of the Financial Commission of the Republic, a globally recognised institution, and a permit is sufficient to start working.
To obtain a permit you simply have to register a company with a shared capital of approximately 1,850 USD in this country. After that, the money is authorised to be used for the remaining documentation to complete the process. The remaining steps to complete the process is as follows:
-Apply for a license
-Obtain a certified assessment that evaluates the risks and emphasizes that the company meets the rules on anti-money laundering
-Give the necessary information about the disclosure of the business data
-Show the business plan scheme
-Have KYC verified documentation
-Give other documents at the request of the pertinent commission.
Although Vanuatu's legislation has taken a small step forward in the development of the digital asset industry, we can be sure that in the future they will continue to work to promote other important amendments that will give an even bigger boost to this industry.
In fact, after the completion of this new law, the officials in charge of this area started to consider new amendments more in line with Vanuatu's development needs, in addition to promoting the flow of capital in this industry that moves so much money globally.
Also, the VFSC has informed the public several times that investments made within the cryptocurrency world are not protected by any compensation arrangement within the country, given the high volatility of this market, as they even consider that this industry is not made for retail investors.
Cryptocurrencies have undoubtedly been a boom in the global economy in the last decade with the development of blockchain technology and the power gained by tokens such as bitcoin and Ethereum, so countries like Vanuatu have been interested and have been working on legislation regarding the issue.
In the near future, we will see this industry grow exponentially compared to others, and we will also see many changes in the legislation of many countries globally. The question lies in who will emerge from a better position taking into account today's developments.
So, to sum it all up we can say that Vanuatu is telling the world that it is open to doing business with virtual asset holders and traders.
Disclaimer: The information contained in this article is for informational purposes only and does not constitute financial advice or recommendations. Investing in financial products or cryptocurrencies involves risks, and you should be aware of the potential risks involved before investing. The content on this website is not intended to be a solicitation or offer to buy or sell any financial products or services. The information provided does not take into account your specific investment objectives, financial situation, or needs, and should not be relied upon as a substitute for professional financial advice. You should seek independent advice from a financial advisor or other professionals before making any investment decisions. Please be aware that the legal status of cryptocurrencies and other financial products may vary in different jurisdictions and may be subject to regulation. It is your responsibility to ensure compliance with any relevant laws and regulations governing the sale and marketing of financial products and services in your jurisdiction.
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