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Lawyers’ Lobbying Efforts result in lifting Crypto-Ban in Vanuatu

Jul 27, 2021

One of the most popular offshore licensing jurisdictions faces changes.

Dealing with Cryptocurrencies was banned by Vanuatu authorities for a long time. If the VSFC license holder had a small reference to crypto on his website, regardless whether as a means for payment, a traded commodity or a CFD, VSFC license could have been revoked and the USD 50,000.00 bond forfeited – never-minding the fact, that Vanuatu is the most popular offshore licensing jurisdiction for self-regulated FX/CFD operations. From now on, Vanuatu licensees interested in dealings with cryptocurrencies may sleep well – changes are coming.

Thanks to Tal Itzhak Ron - Advocate &Notary, Chairman and CEO, and Genia Gurevitz – Advocate & Head of Banking and Payments Services, from the leading legal and banking firm ‘Tal Ron, Drihem & Co.’ the light was shed on innovative measures that are taking effect in Vanuatu this week.

According to Tal Itzhak Ron, on 22nd of July, the amendment to the Financial Dealers Licensing Act unexpectedly went into effect, allowing the “distribution, secondary trading, custodial storage and provision of investment advice or other services in relation to digital assets”. After years of strict restrictions on any engagement with cryptocurrencies, which made those wishing to deal with Crypto go other ways, Vanuatu jurisdiction will become even more attractive than ever.

“Tal Ron, Drihem & Co., Law Firm lobbied massively for that change to happen, prepared for the announcement, and built the payments infrastructure 1.5 years in advance to facilitate the needs of those wishing to enrich their services offered and give their business a competitive edge,” - Genia continues. “This amendment placed Vanuatu in the major league, with other, more established, jurisdictions that Tal Ron, Drihem & Co. have already been using since 2017 to represent clients in issuing coins and engage with other blockchain crypto activities, such as Gibraltar, Switzerland, Singapore, Malta, and Estonia. The amendment seeks to expand the possibilities for already-licensed companies in Vanuatu, as well as to attract new digital asset companies for which the most important part is to know how to bank them properly and protect their interests while staying fully compliant and socially responsible.”

“The novelty about the new legislation is not about brokers being able to use Crypto deposits or trade or offer Crypto for themselves or at their business, which is great in itself, but now they are finally able, if play their card right and found adequate, to open a bank account in exceptional brick-and-mortar banks such as Bank Frick in Liechtenstein, which our firm partners with,” - Genia explains.

Genia Gurevitz explained, that this legislation effectively allows crypto-entrepreneurs to launch their own digital currencies, similarly to what Genia has already dealt with in the past in Gibraltar. Moreover, Tal’s team has already gathered the knowledge and infrastructure to facilitate the growing demand for Vanuatu companies from all aspects and built a complex network of payment companies accepting the Vanuatu license, thus allowing companies regulated there to issue coins and collect payments, aside of operating FX sites.

These, definitely positive, news are falling the general outline of crypto-currency triumphant pace over the modern world and our editorial office meets them with fain.

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