Marshall Islands: technology regulation at a glance

Framework: Banking Act 1987 (as amended, governs VASPs); DAO LLC Act 2022 (amended 2023); Sovereign Currency Act 2018 (SOV, largely inactive); no standalone comprehensive digital-asset law

The Marshall Islands has taken a fragmented, pioneer-by-experimentation approach to crypto. It recognised DAOs as legal entities in 2022 and strengthened that regime in 2023, making it a global hub for DAO incorporation, while the Banking Act nominally requires VASP licences that are in practice not being issued. A government-backed stablecoin (USDM1) and digital-wallet (Lomalo) UBI programme launched in late 2025, but a November 2024 FATF Mutual Evaluation found serious deficiencies in AML/CFT supervision of virtual-asset activities.

Framework: No AI-specific law, strategy, or formal guidelines exist; the Marshall Islands' governance context is shaped by general digital-transformation legislation (Digital Transformation and Identity Verification Act 2025, Personal Data Protection Act 2025, Cybersecurity Act 2025) and the World Bank-supported Digital Republic of the Marshall Islands project.

The Marshall Islands has no dedicated AI legislation, national AI strategy, or formal AI ethics/guidelines as of May 2026. The country's legislative energy has been directed at foundational digital-government reform, e-identity, data protection, cybersecurity, and telecommunications, rather than AI governance specifically. Regional assessments confirm that none of the 16 Pacific Island nations, including the Marshall Islands, have an active AI strategy in place.

Framework: Personal Data Protection Act 2025 (P.L. 2025-43), enacted by the Nitijela (RMI Parliament); applies only to core Government ministries and agencies and is administered by a designated 'competent authority'. No comprehensive private-sector data protection law exists.

The Marshall Islands has historically had no comprehensive data protection statute, relying instead on constitutional privacy guarantees and a few criminal provisions. In 2025 it enacted the Personal Data Protection Act 2025 (P.L. 2025-43), but that law applies only to core Government ministries and agencies, not the private sector, and takes effect twelve months after certification, so its coverage is sector-limited (public sector) rather than a GDPR-style comprehensive regime.

Framework: Banking Act 1987 (as amended 2019, 2020) administered by Office of the Banking Commission; Marshall Islands Monetary Authority Act 2025 (establishing MIMA with payment-systems oversight)

The Marshall Islands regulates payment-adjacent activity primarily through its Banking Act and 2020 amendments that introduced VASP/money-services licensing aligned with FATF standards, overseen by the Office of the Banking Commission. The Monetary Authority Act 2025 established the new Marshall Islands Monetary Authority (MIMA) as an independent regulator with an explicit mandate over banks, money-service businesses, and payment systems. No dedicated standalone payment-institution or e-money (EMI) licensing law yet exists, and MIMA is newly operational; the regime is therefore partially in place but not yet fully built out.

Framework: RMI Division of Immigration (Ministry of Justice, Immigration & Labor); Compact of Free Association (COFA), as renewed by the Compact of Free Association Amendments Act of 2024 (covering 2024-2044); RMI Non-Citizen Registration and Immigration Law

The Marshall Islands has no dedicated digital nomad or remote-work visa. However, US citizens enjoy an indefinite right to live, reside, and work in the RMI without a visa or work permit under the Compact of Free Association, making it a de facto open pathway for US-based remote workers. All other nationalities face a conventional immigration regime: short-stay visa-on-arrival (typically 30-90 days), with longer stays requiring formal enrollment with the RMI Division of Immigration, and employment tied to an employer-sponsored work permit.

Framework: Cybercrimes Act 2025 (PL 2025-40); Cybersecurity Act 2025 (PL 2025-27); Personal Data Protection Act 2025 (PL 2025-43, public-sector only); Ministry of Transportation and Communication (national cybersecurity authority)

The Marshall Islands enacted a foundational cluster of digital laws in 2025, including a Cybercrimes Act, Cybersecurity Act, and a public-sector Personal Data Protection Act, replacing near-total reliance on the Criminal Code 2011. However, there is no comprehensive online safety regime governing platform content moderation, platform liability, or age verification; a harmful digital communications law remains a planned future measure targeted by 2028.

Framework: Cybersecurity Act 2025 (PL 2025-27); Cybercrimes Act 2025 (PL 2025-40); Ministry of Transportation and Communication (national cybersecurity authority)

The Marshall Islands enacted the Cybersecurity Act 2025 (PL 2025-27) as its first comprehensive national cybersecurity statute, establishing a legal framework to protect critical information infrastructure and mandate an incident-response capability. A companion Cybercrimes Act 2025 (PL 2025-40) simultaneously introduced substantive cybercrime offences. Prior to 2025, the country had no dedicated cybersecurity or cybercrime legislation, relying only on limited provisions of the Criminal Code 2011.

Framework: Business Corporations Act 1990 (IBCs/LLCs, non-resident entities); Foreign Investment Business License Act 1990 as amended 2000 (domestic foreign investment); administered by IRI/RMI Corporate Registry and the Registrar of Foreign Investment (Attorney General's Office)

The Marshall Islands offers two tracks for foreign business formation. Offshore International Business Corporations (IBCs) and LLCs can be formed in one business day through IRI's global network, with 100% foreign ownership, no minimum capital, and zero tax on non-resident entities. Foreigners operating domestically within the RMI must first obtain a Foreign Investment Business License (FIBL) from the Registrar of Foreign Investment; a 2024 reform program reduced target processing to 30 days, though a 'Reserved List' bars foreigners from small-scale retail, small agriculture, and water-taxi services, and retail/wholesale above USD 50,000 annual turnover requires at least 51% Marshallese ownership.