Central Bank of Fiji Issues Warning Against Purchasing and Investing in Cryptocurrencies
With the cryptocurrency market gradually recovering after the weekend debacle, Fiji’s central bank has issued a warning to the public regarding the use and trading of digital assets within the country.
RBF Governor Ariff Ali said the warning regarding the use, trading and investment in cryptocurrencies arose from the growing trend of promoting digital asset investment schemes in Fiji.
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 1983, under which legal tender in Fiji is limited to banknotes and coins issued or authorized only by the RBF. Therefore, any attempt to use cryptocurrencies for payment purposes within the country is considered illegal under current legislation.
The bank also revealed that it is illegal for residents of the country to engage in any form of cryptocurrency trading using funds held in 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 ban extends to the use of locally issued credit and debit cards in the country to acquire or invest in digital assets. The central bank warned that violations of RBF directives regarding the use and promotion of digital assets may lead to sanctions 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 cryptocurrencies without obtaining approval from the central bank may incur sanctions under the Exchange Control Law.
No Company is Authorized to Offer Crypto Services in Fiji
RBF Governor Ariff Ali said the warning about the use, trading and investment in cryptocurrencies arose from the growing trend of promoting digital asset investment schemes in Fiji.
According to Ali, the asset class is advertised to the country’s residents through social media platforms, while the country prohibits its citizens from interacting with the emerging economy. The RBF governor also emphasized that the bank has not authorized any person or organization to offer cryptocurrency-related investment products to people in the region.
Fiji residents may even face criminal charges for investing in cryptocurrencies abroad using “funds held in Fiji,” the statement added. Apparently, the warning was motivated by the promotion of cryptocurrencies in the country:
“RBF Governor Mr. Ariff Ali acknowledges that there are indications of individuals or entities promoting cryptocurrency investment schemes in Fiji. These investment plans are increasingly promoted through various platforms, including social media,” according to the statement.
The country is one of the many nations in the world that has frowned upon the adoption of financial innovation. Through the central bank and the Fiji Competition and Consumer Commission, the government has issued several warnings regarding the use and trading of digital assets in the region.
By Audy Castaneda