By
Godfrey Benjamin
April 29th, 2024
RBF governor Ariff Ali said the warning regarding the use, trading, and investing in cryptocurrencies emanated from the growing trend of digital asset investment schemes being promoted within Fiji.
With the crypto market gradually recovering following the weekend debacle, the central bank of Fiji has issued a cautionary warning to the public regarding the use and trading of digital assets within the country.
In an official press release on Monday, the Reserve Bank of Fiji (RBF) clarified that cryptocurrencies such as Bitcoin (BTC), Ethereum (Ether), and Tether USD (USDT) are not recognized as legal tender in the country and should not be used for transactions involving goods and services within the nation.
Cryptocurrencies Are Illegal in Fiji
The bank cited the RBF Act of 1983, stating that Fiji’s legal tender is limited to currency notes and coins issued or authorized by the RBF alone. Therefore, any attempt to use cryptocurrencies for payment purposes within the country is deemed illegal under current legislation.
The bank also disclosed that it is illegal for residents of the country to engage in any form of crypto trading using funds held within Fiji, as virtual assets are not recognized as investment offerings.
The RBF said the rule also extends to corporate institutions. Individuals and companies are prohibited from investing in or purchasing digital assets within the nation, popularly known as the “soft coral capital of the world.”
The bank further stated that the prohibition extends to using credit and debit cards locally issued in the country to acquire or invest in digital assets.
The central bank warned that violations of the RBF’s directives regarding the use and promotion of digital assets may result in penalties under both the RBF Act of 1983 and the Exchange Control Act of 1950.
The RBF also warned that citizens outside the country who invest in crypto without obtaining approval from the central bank may attract penalties under the Exchange Control Act.
No Company Is Authorized to Offer Crypto Services in Fiji
RBF governor Ariff Ali said the warning regarding the use, trading, and investing in cryptocurrencies emanated from the growing trend of digital asset investment schemes being promoted within Fiji.
According to Ali, the asset class is being advertised to the country’s residents through social media platforms, whereas the country prohibits its citizens from engaging with the emerging economy.
The RBF governor also emphasized that the bank has not authorized any individual or entity to offer crypto-related investment products to people in the region.
The country is one of the many nations worldwide that has frowned against embracing financial innovation. Through the central bank and the Fijian Competition and Consumer Commission, the government has issued several warnings regarding the use and trading of digital assets in the region.