Self-custodial wallet / non-custodial software in Vanuatu
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is permitted in Vanuatu with no licensing burden.
Verdict Details
- Permitted
- yes
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
AML Obligations
- No AML/CTF obligations attach because a self-custodial wallet publisher never holds, controls, or accesses user funds — the definition of a VASP under the VAPA 2023 and the AML/CTF Act [CAP 264] requires custody or control over virtual assets to trigger VASP classification.
- General AML/CTF Act obligations for VASPs (registration with VFSC/FIU, customer due diligence, transaction monitoring, suspicious transaction reporting) would only apply if the publisher exercised custody — which it does not in this operating model.
Key Restrictions
- The software publisher must not take custody, control, or access to users' private keys or virtual assets to remain outside VASP licensing scope under VAPA 2023.
- Cryptocurrencies are not legal tender in Vanuatu (Reserve Bank of Vanuatu November 2022 statement) — this affects the software's positioning but does not restrict software publishing.
- General consumer protection and contract laws apply to software distribution, but no specific crypto-consumer-protection framework exists for non-custodial wallet software.
Key Risks
- Regulatory ambiguity risk: Vanuatu's VASP framework under VAPA 2023 is new (2023), and there is little enforcement precedent clarifying the boundary between non-custodial software and VASP activity.
- Risk that VFSC could reinterpret 'virtual asset service' broadly to include software publishers who facilitate user self-custody, despite no actual fund control.
- Lack of specific publicly detailed enforcement actions (vu.aml.lack-of-specific-publicly-detailed) means regulatory posture toward non-custodial software is untested.
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.
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.)
General Regulatory Stance and Warnings:
Reserve Bank of Vanuatu Statement on Cryptocurrencies (November 2022)
Lack of Specific, Publicly Detailed Enforcement Actions:
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.
Yes — a publisher of self-custodial wallet software can operate in Vanuatu without a VASP license or AML obligations, because the VAPA 2023 and AML/CTF Act require custody or control over virtual assets to trigger VASP classification, which this model avoids by design; however, regulatory interpretation is untested by enforcement actions, creating some ambiguity risk.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?