Is crypto legal in Vanuatu? Rules & regulation (2026)

Legal framework

Virtual Asset Service Providers Act No. 3 of 2025 (VASP Act), administered by the Vanuatu Financial Services Commission (VFSC); supplemented by the Stablecoins Act passed November 2025

Status by sub-area

• Stablecoins

  Partial

  A dedicated Stablecoins Act was passed by Vanuatu's Parliament in November 2025 with provisions for reserve backing and dedicated custody of reserves, separate from the general VASP Act. Gazettal and implementing regulations are pending confirmation, placing the framework in a transitional state.

  Still pending: Stablecoins Act passed Nov 2025; gazettal and implementing regulations pending

• Exchanges / VASP

  In force

  Exchanges and VASPs operating in or from Vanuatu must hold a VFSC licence (Class D for fiat-to-crypto exchange, D.1 for virtual asset transfers) since 1 April 2025. The framework requires FATF AML/CFT compliance, Travel Rule adherence, and capital adequacy, with revised application requirements published January 2026.

• Token Offerings

  In force

  Initial Token Offerings (ITOs) require a VFSC Class D.3 licence under the VASP Act. Issuers must submit a white paper to the VFSC before launch, only corporate entities may apply, and token purchasers have a statutory 10-day cooling-off period.

• Custody

  In force

  Virtual asset custody is regulated under VASP Act Class D.2, covering safekeeping and administration of client assets including private key management and cold/hot wallet custody. Custodians must be VFSC-licenced; detailed requirements were revised in January 2026.

• DeFi

  Unclear

  The VASP Act does not explicitly address decentralised finance protocols, permissionless smart contracts, or DAO governance. A Fintech Sandbox Utility under VFSC oversight permits experimental DeFi-adjacent services for up to one year, but there is no dedicated DeFi regulatory framework and the enforcement posture toward pure DeFi protocols remains undefined.

  Still pending: Dedicated DeFi regulatory framework not yet established; VASP Act silent on protocols

• Tax

  In force

  Vanuatu imposes no personal income tax, no corporate tax, and no capital gains tax, all constitutionally entrenched. Crypto trading profits, staking rewards, airdrop income, mining proceeds, and capital gains from digital assets are therefore untaxed. A 12.5% VAT applies to domestic goods and services but there is no crypto-specific tax legislation.

Key points: crypto & digital assets in Vanuatu

1. 01VASP Act in Force

   The Virtual Asset Service Providers Act No. 3 of 2025 was passed 26 March 2025 and entered into force 1 April 2025, establishing a mandatory licensing and supervisory regime for all crypto businesses operating in or from Vanuatu.

   vfsc.vu vfsc.vu

2. 02Five Licence Classes

   The VASP Act provides five licence classes: Class D (exchange), D.1 (transfer), D.2 (custody), D.3 (financial services/ITO), and D.4 (bank). Application fees are USD 50,000 and annual licence fees are USD 100,000 per class; VFSC published revised licence-application requirements in January 2026.

   vfsc.vu vfsc.vu

3. 03Stablecoins Act Passed

   Vanuatu's Parliament passed a dedicated Stablecoins Act in November 2025, making Vanuatu one of the first Pacific nations to enact bespoke stablecoin legislation with provisions for reserve backing and dedicated custody of reserves.

   parliament.gov.vu mattdotvu.blog

4. 04Strict Enforcement Powers

   The VFSC has broad investigation and enforcement powers; operating without a licence or breaching the VASP Act carries fines of up to 250 million vatu (approx. USD 2 million) and prison terms of up to ten years.

   fca.vu financemagnates.com

5. 05FATF Alignment and Travel Rule

   The VASP Act mandates FATF AML/CFT compliance and implementation of FATF Recommendation 16 (Travel Rule) for virtual asset transfers; the framework also aligns with APG, IOSCO, and OECD standards. VFSC published a VASP & ITO Risk Assessment in November 2025.

   fma.vu vfsc.vu

6. 06Tax-Neutral Jurisdiction

   Vanuatu's constitution prohibits income tax and capital gains tax; crypto trading profits, staking rewards, mining income, and capital gains from digital assets are therefore untaxed for individuals and corporations. A 12.5% VAT applies only to domestic goods and services transactions.

   taxatlas.io

Sources

1. 1.vfsc.vu/wp-content/uploads/2025/06/Virtual-Asset-Services-Providers-Act-No-3-
2. 2.vfsc.vu/virtual-asset-service-provider/
3. 3.vfsc.vu/wp-content/uploads/2025/07/Press-Release-on-Passing-of-VASP-Act.pdf
4. 4.vfsc.vu/wp-content/uploads/2026/02/Requirements-for-Licence-Application-as-a-
5. 5.vfsc.vu/wp-content/uploads/2026/01/VASP-Capital-Adequacy-Guidelines.pdf
6. 6.vfsc.vu/wp-content/uploads/2025/11/VFSC-Risk-Assessment-for-Virtual-Assets-20
7. 7.parliament.gov.vu/images/Bills/Second%20Ordinary%20session%202025/Bill%20for%20the%20St
8. 8.fca.vu/vanuatu-passes-virtual-asset-service-providers-vasp-act/
9. 9.fma.vu/vanuatus-vasp-act-is-pioneering-digital-finance-regulation/
10. 10.taxatlas.io/country/vanuatu
11. 11.mattdotvu.blog/2025/11/10/vanuatu-makes-history-parliament-passes-first-ever-stablec
12. 12.financemagnates.com/cryptocurrency/vanuatu-parliament-passes-crypto-legislation/