According to PANews, the Pacific island nation of Nauru has enacted legislation to establish the Crypto and Virtual Asset Authority (CRVAA), tasked with overseeing cryptocurrencies, digital banking, and Web3 innovations. The new law categorizes cryptocurrencies as commodities rather than securities, excluding payment tokens from investment contract definitions. The regulations encompass exchange operations, ICOs, NFTs, lending, and DeFi services, while also supervising stablecoin issuance and cross-border payments.
Nauru's President David Adeang stated that the initiative aims to position the country as a digital asset hub in Oceania and enhance economic resilience through diversified revenue streams. Previously, Nauru permitted cryptocurrency trading but lacked specific regulatory measures. Covering an area of 21 square kilometers and home to approximately 12,500 people, Nauru is the world's third smallest nation.
