Micronesia -- Enforcement Actions Regulatory Overview

Based on available public information and regulatory assessments, there have been no significant (or even minor, specific) cryptocurrency enforcement actions in the Federated States of Micronesia (FSM) within the last three years (or even prior to that).

This absence of enforcement actions is primarily due to:

1. Lack of a Dedicated Regulatory Framework: The FSM currently lacks a comprehensive legal and regulatory framework specifically addressing virtual assets (VAs) and virtual asset service providers (VASPs).
2. No Registered or Licensed VASPs: As of the latest assessments, there are no known or registered VASPs operating within the FSM that would fall under a regulatory scope (if one existed).
3. Limited Capacity and Awareness: International assessments indicate that the FSM's financial authorities are still developing their understanding and capacity to monitor and regulate the virtual asset sector.

Key Regulator/Assessment Body:

• Federated States of Micronesia (FSM) Financial Intelligence Unit (FIU): This is the primary authority responsible for anti-money laundering and combating the financing of terrorism (AML/CFT) in the FSM. While they address financial crimes, specific crypto enforcement requires a clear regulatory basis for virtual assets.
• Asia/Pacific Group on Money Laundering (APG): As an associate member of the Financial Action Task Force (FATF), the APG conducts mutual evaluations of its members' AML/CFT regimes. Their reports provide the most comprehensive public information on the FSM's status regarding virtual assets.

Explanation and Context from APG Mutual Evaluation Report:

The most recent APG Mutual Evaluation Report for the FSM (adopted in July 2021, covering the period up to late 2020) explicitly noted the following regarding virtual assets:

• No specific legislation: The FSM had not yet enacted specific legislation or regulations to address virtual assets or virtual asset service providers (VASPs).
• No VASPs identified: The authorities had not identified any VASPs operating within the jurisdiction.
• Lack of understanding and capacity: The report highlighted a lack of understanding by supervisory authorities regarding the risks associated with virtual assets and a need to develop supervisory capacity in this area.
• Recommendations: The APG recommended that FSM develop a comprehensive legal and regulatory framework for VAs and VASPs, including registration, licensing, and AML/CFT obligations, and ensure appropriate supervision and enforcement capabilities.

Conclusion:

Given the current state of regulation and the absence of identified or regulated virtual asset service providers, there have been no "enforcement actions" specific to cryptocurrency in the FSM. The jurisdiction is still in the very early stages of developing its framework for virtual assets.

Therefore, I cannot provide details on specific enforcement actions (regulator name, entity targeted, violation type, penalty amount, date, and outcome) because they have not occurred.

Source URLs:

1. Asia/Pacific Group on Money Laundering (APG) - FSM Mutual Evaluation Report (2021):

   • https://www.apgml.org/members-and-economies/documents/default.aspx?Country=FSM
   • You will need to navigate to the specific "Mutual Evaluation Report of FSM (2021)" document on this page. (Direct link to PDF may change, but this is the official APG page for FSM reports).

2. Federated States of Micronesia (FSM) Financial Intelligence Unit (FIU):

   • While the FSM FIU website may not list specific crypto enforcement, it represents the key regulatory body for AML/CFT.
   • Note: Finding a stable, official government portal for the FSM FIU that is consistently updated and publicly accessible can be challenging for smaller nations. Many operate with limited public web presence. A general search might lead to mentions within government documents or international aid reports.

The APG report serves as the authoritative source confirming the regulatory landscape and the lack of crypto-specific enforcement in the FSM.