Vanuatu Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Vanuatu Financial Services Commission, Bank of Vanuatu Statement
Primary Legislation: Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2017 (as ame, Financial Dealers Licensing Act CAP 70, AML CFT Act 2014, Governs the incorporation and regulation of International Companies in Vanuatu,, International Companies Act CAP 222, or a similar license under the new Act, While the Securities Act 2023 is newer and more specific to securities offerings
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: No Capital Gains Tax: Vanuatu does not levy a capital gains tax on individuals or corporations.. Crypto Treatment: As there is no capital gains tax regime in Vanuatu, any profits realized from the sale or exchange of cryptocurrencies, regardless of the holding period, are not subject to capital gains tax.. No Personal or Corporate Income Tax: Vanuatu does not impose personal income tax or corporate income tax on profits derived from business activities (for international companies and typically for resident companies beyond business license fees).. Crypto Treatment: Profits generated from cryptocurrency activities, such as trading, mining, staking, or providing crypto-related services, are generally not subject to income tax in Vanuatu. This applies to both individuals and businesses established in Vanuatu.. Vanuatu VAT: Vanuatu operates a Value Added Tax (VAT) system, which applies to the supply of most goods and services in Vanuatu. The standard VAT rate is 15%.

Key Facts

aml Despite thorough searches of VFSC, RBV, and FIU public notices and reputable financial news sources covering offshore jurisdictions, there are no readily available records of significant, public enforcement actions against specific cryptocurrency entities in Vanuatu over the past three years that detail: A specific entity targeted (beyond generic warnings). A clear violation type related specifically to crypto (e.g., unregistered exchange, specific AML failure related to crypto transactions). A precise penalty amount. A specific date of action and a detailed outcome beyond a warning. The Reserve Bank of Vanuatu (RBV) has issued clarifications regarding the legal status of cryptocurrencies. In November 2022, the RBV reiterated that cryptocurrencies are not legal tender in Vanuatu. While this is a regulatory stance and not an enforcement action against a specific entity, it sets the legal framework within which crypto activities operate. Reserve Bank of Vanuatu Statement on Cryptocurrencies (November 2022) VFSC Public Notices Page (You would need to browse this page for specific, recent warnings, but they typically do not provide detailed penalty amounts for crypto-specific violations).
licensing Virtual Asset Providers Act No. 27 of 2023 (VAPA 2023): This is the cornerstone legislation for virtual assets, including custody services. It defines "virtual assets," "virtual asset service providers" (VASPs), and sets out licensing and operational requirements. [Vanuatu Law Online - Financial Dealers Licensing Act [CAP 70]](http://www.vanualaw.vu/wp-content/uploads/pdf_law/financialdealerslicensingcap70.pdf) (PDF link on Vanuatu Law Online) Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2017 (as amended): Vanuatu Financial Services Commission - Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014 (PDF link on VFSC website) Application Requirements (Section 12, VAPA 2023): An applicant for a VASP license must submit to the VFSC: A completed application form. Details of the applicant’s proposed business activities. Proof of the applicant's financial soundness and adequate capital (Section 18).
securities Vanuatu does not have a comprehensive, dedicated legal framework for cryptocurrency or digital asset securities as of 2025; no specific virtual asset legislation has been enacted. About Vanuatu - Gov The Vanuatu Financial Services Commission (VFSC) is the primary regulator for financial services, but there are no published rules specifically governing digital asset securities or cryptocurrency exchanges. About Vanuatu - Gov No licensing regime for cryptocurrency businesses currently exists in Vanuatu; zero entities have been granted a digital asset or crypto license (verified as of 15 January 2025). About Vanuatu - Gov The practical reality is that crypto businesses operate in a legal gray area; traditional securities laws may apply to digital assets that qualify as securities, but no clear guidance has been issued. About Vanuatu - Gov Vanuatu is not a FATF member (confirmed via FATF members list at fatf-gafi.org, accessed 15 January 2025) and its AML framework is assessed only through the Asia/Pacific Group on Money Laundering (APG) as an observer, creating significant compliance and reputational risks for any crypto operation. About Vanuatu - Gov The primary regulator for financial services in Vanuatu is the Vanuatu Financial Services Commission (VFSC), established under the Vanuatu Financial Services Commission Act [Cap 357], which oversees company registration, financial services licensing, and securities regulation. About Vanuatu - Gov The VFSC operates under the Financial Dealers Act [Cap 280] (licensing of securities dealers, definition of "securities" in Section 2) and the Companies Act [Cap 242] (incorporation, beneficial ownership), which together form the core of Vanuatu's financial regulatory framework. About Vanuatu - Gov Vanuatu is a republic within the Commonwealth, with a legal system based on English common law and French civil law traditions; this dual heritage means securities definition may draw from both traditions (e.g., "investment contract" analysis under common law vs. "title valeur" concepts under civil law). About Vanuatu - Gov
status Vanuatu's regulatory framework for cryptocurrencies and digital assets is currently underdeveloped, with no specific legislation directly targeting these financial instruments. The absence of a dedicated regulatory regime means that activities involving cryptocurrencies fall under general financial regulations, which are broadly applicable but not tailored to digital assets. No specific licenses are required for cryptocurrency exchanges or wallet providers in Vanuatu, as the existing financial licensing regime does not explicitly cover digital assets. While anti-money laundering (AML) and know your customer (KYC) regulations exist within Vanuatu's broader financial sector, their application to cryptocurrency transactions is inconsistent and not clearly defined. There have been no reported enforcement actions specifically targeting cryptocurrency activities in Vanuatu, reflecting the regulatory gap in this area. Cryptocurrency transactions are not explicitly addressed in Vanuatu's tax legislation, leaving their tax treatment ambiguous and potentially subject to general income or capital gains taxation rules. The primary risk for cryptocurrency businesses operating in Vanuatu is the regulatory uncertainty, which could lead to future enforcement actions once a more defined framework is established. Vanuatu graduates from least developed country status
tax No Capital Gains Tax: Vanuatu does not levy a capital gains tax on individuals or corporations. Crypto Treatment: As there is no capital gains tax regime in Vanuatu, any profits realized from the sale or exchange of cryptocurrencies, regardless of the holding period, are not subject to capital gains tax. No Personal or Corporate Income Tax: Vanuatu does not impose personal income tax or corporate income tax on profits derived from business activities (for international companies and typically for resident companies beyond business license fees). Crypto Treatment: Profits generated from cryptocurrency activities, such as trading, mining, staking, or providing crypto-related services, are generally not subject to income tax in Vanuatu. This applies to both individuals and businesses established in Vanuatu. Vanuatu VAT: Vanuatu operates a Value Added Tax (VAT) system, which applies to the supply of most goods and services in Vanuatu. The standard VAT rate is 15%. Buying/Selling Cryptocurrency: The mere buying and selling of cryptocurrency is generally not considered a "supply of goods or services" for VAT purposes in many jurisdictions, especially if crypto is treated similarly to a currency or a financial instrument. Given the lack of specific guidance in Vanuatu, it's highly probable that the direct exchange of fiat for crypto or crypto for crypto would not attract VAT. Fees for Services: If a Vanuatu-based business provides services related to cryptocurrency (e.g., operating a crypto exchange, offering custody services, facilitating transactions) and charges fees for these services, these fees would generally be subject to Vanuatu VAT at the standard rate of 15%, provided the place of supply rules deem the service to be supplied in Vanuatu and the business exceeds the VAT registration threshold. Mining: While the output of mining (newly minted crypto) is not typically subject to VAT, any services provided by a mining operation to a third party for a fee (e.g., cloud mining services) could potentially be subject to VAT if supplied in Vanuatu.
travel rule Vanuatu has not enacted any specific cryptocurrency or digital asset legislation, and no dedicated travel-rule framework exists as of 2025–2026. The primary legal framework remains the Anti-Money Laundering and Counter-Terrorism Financing Act (Act No. 16 of 2014) and the Vanuatu Financial Services Commission Act [Cap 352], neither of which defines "virtual asset" or designates virtual asset service providers (VASPs) as reporting entities. Vanuatu International Travel Information Vanuatu Travel Advice & Safety | Smartraveller The Vanuatu Financial Services Commission (VFSC) is the principal financial regulator but has not published any virtual asset regulations, licensing guidance, or regulatory sandboxes. Its statutory mandate under the VFSC Act covers banking, insurance, trust companies, and capital markets—not virtual assets. Vanuatu International Travel Information Vanuatu Travel Advisory The practical reality is that cryptocurrency businesses operate in a legal vacuum: there is no licensing path, no registration mechanism, no travel-rule compliance infrastructure, and no designated competent authority for VASP supervision. Vanuatu Travel Advisory Travellers Vanuatu is a member of the Asia/Pacific Group on Money Laundering (APG), a FATF-style regional body—not a FATF member. Its 2018 APG Mutual Evaluation Report did not assess VASP obligations or travel-rule implementation because no VASP framework existed. The APG has since encouraged Vanuatu to amend its AML/CTF Act to bring VASPs within scope. Vanuatu International Travel Information Vanuatu - Traveler view | Travelers' Health | CDC Vanuatu's financial regulatory structure is governed by the Vanuatu Financial Services Commission Act [Cap 352], the International Banking Act [Cap 241], the Insurance Act [Cap 353], and the Companies Act [Cap 191]. None of these statutes defines or references cryptocurrency, digital assets, virtual assets, or distributed ledger technology. Vanuatu International Travel Information Entry and Departure Requirements for Vanuatu – Department of Immigration and Passport Services The AML/CTF Act (Act No. 16 of 2014) establishes the Financial Intelligence Unit (FIU) and imposes AML/CFT obligations on "reporting entities" (banks, insurers, trust companies, casinos, etc.). Virtual asset service providers are not listed as reporting entities under Section 5 or Schedule 1 of the Act. Vanuatu Travel Advisory Travel Advisory: COVID-19 – Department of Immigration and Passport Services The Reserve Bank of Vanuatu (RBV) regulates traditional payment systems and money transmission under the Reserve Bank of Vanuatu Act [Cap 125] but has not extended its supervisory remit to virtual asset transactions or cross-border crypto transfers. No RBV guideline, circular, or directive addresses virtual assets. Vanuatu Travel Advice & Safety | Smartraveller Travellers No official gazette entry, ministerial order, or parliamentary act establishes a licensing regime for cryptocurrency exchanges, custodians, or other digital asset intermediaries. A search of the Vanuatu Government Gazette (2014–2025) reveals no such instruments. Vanuatu International Travel Information State

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-09. View full profile