Remote VASP serving residents in Vanuatu
Foreign-incorporated entity that offers exchange, custody, or transfer services to residents of a jurisdiction without establishing a local entity or office.
Remote VASP is conditionally permitted in Vanuatu with a local entity, subject to AML obligations and high licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- Yes
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- Registration with Vanuatu Financial Intelligence Unit (FIU) as a VASP under AML/CTF Act [CAP 264]
- Implement AML/CTF policies and procedures compliant with Section 17 of VAPA 2023 and the AML/CTF Act
- Perform Customer Due Diligence (CDD) and ongoing monitoring on residents served
- File Suspicious Transaction Reports (STRs) with the FIU
- Maintain records clearly identifying ownership of each client's virtual assets (Section 22, VAPA 2023)
- Comply with VFSC fit-and-proper requirements for directors and senior management (Section 14, VAPA 2023)
- Maintain adequate capital as prescribed by the Minister (Section 18, VAPA 2023) — thresholds yet to be detailed
Key Restrictions
- A VASP must be licensed under the Virtual Asset Providers Act No. 27 of 2023 (VAPA 2023) to serve residents
- Licensing requires a completed application to VFSC with details of business activities, financial soundness, internal controls, and fit-and-proper assessments
- Client assets must be segregated from the VASP's own assets and from other clients' assets (Sections 20-22, VAPA 2023)
- Client virtual assets cannot be used to satisfy VASP liabilities or be disposed of without client consent
- Minimum unimpaired paid-up capital requirement is mandatory (Section 18, VAPA 2023) — specific thresholds not yet published
- Cryptocurrencies are not legal tender in Vanuatu (RBV November 2022 statement)
Key Risks
- Lack of publicly detailed enforcement actions against crypto entities — regulatory ambiguity on how aggressively VFSC pursues unlicensed remote operators
- Capital thresholds under VAPA 2023 not yet fully detailed by regulation, creating licensing timeline uncertainty
- No specific e-money or payment token framework — stablecoin or payment-token services face classification ambiguity
- As a small offshore jurisdiction, Vanuatu may face FATF scrutiny; compliance obligations could tighten
- Remote operators without a local entity face material enforcement risk for unlicensed activity under VAPA 2023
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
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 Financial Services Commission - Virtual Asset Providers Act No. 27 of 2023 (PDF link on VFSC website)
Application Requirements (Section 12, VAPA 2023): An applicant for a VASP license must submit to the VFSC:
Capital Requirements (Section 18, VAPA 2023): A VASP must at all times maintain a minimum unimpaired paid-up capital as prescribed by the Minister through regulation. This regulation is yet to be fully detailed.
Fit and Proper Persons (Section 14, VAPA 2023): Directors and senior management must meet "fit and proper" criteria established by the VFSC, demonstrating competence, integrity, and financial soundness.
Client Assets (Sections 20, 21, 22, VAPA 2023):
A VASP must hold a client’s virtual assets separate from its own assets and the assets of other clients (Section 20(1)).
Virtual assets held by a VASP on behalf of a client are not to be used to satisfy any liability of the VASP or form part of its assets (Section 20(2)).
A VASP is prohibited from using, dealing with, or otherwise disposing of a client's virtual assets without the client's explicit consent, except as authorized by law or a court order (Section 21).
A VASP must maintain adequate records that clearly identify the ownership of each client's virtual assets (Section 22).
Risk Management and Internal Controls (Section 19, VAPA 2023): A licensed VASP must implement robust risk management systems and internal controls designed to ensure the security, integrity, and operational resilience of its services, which could implicitly encourage or require consideration of insurance.
Financial Soundness and Capital Requirements (Section 18, VAPA 2023): The requirement for adequate capital is intended to provide a buffer against operational risks, though it's not a direct substitute for insurance.
Virtual Assets: The most likely general classification is "Virtual Assets" or "Digital Assets" under the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF Act) [CAP 264]. This act defines "virtual asset" broadly and mandates AML/CTF obligations for Virtual Asset Service Providers (VASPs).
Reference: Anti-Money Laundering and Counter-Terrorism Financing Act [CAP 264] (accessible via PacLII: http://www.paclii.org/vu/legis/consol_act/a-mlact2019318/ - Note: This link points to the 2019 version which often incorporates previous amendments.)
Virtual Asset Service Provider (VASP) Obligations: The AML/CTF Act [CAP 264] mandates that entities providing "virtual asset services" (which would include stablecoin exchanges, transfers, custody, etc.) are considered VASPs and must comply with AML/CTF obligations, including registration with the Vanuatu Financial Intelligence Unit (FIU) and implementing robust KYC/CDD procedures.
Reference: Vanuatu Financial Intelligence Unit (FIU) website: http://www.fiu.gov.vu/
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)
Lack of Specific, Publicly Detailed Enforcement Actions:
General Regulatory Stance and Warnings:
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- medium
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a foreign-incorporated remote VASP serving Vanuatu residents must obtain a VASP license under VAPA 2023 (requiring a local entity, fit-and-proper management, segregated client assets, and AML/CTF compliance with the FIU), with capital thresholds still pending regulation, creating licensing timeline uncertainty.
Questions this verdict aims to answer
- May a non-resident provider serve residents from abroad?
- Does cross-border service trigger licensing, registration, or AML obligations?
- What enforcement risk exists for unlicensed remote operators?