FameEX Hot Topics | Fiji's Central Bank Warns of Penalties for Buying Cryptocurrency

The Reserve Bank of Fiji (RBF) recently reinforced its stance on cryptocurrencies, explicitly stating that they are not recognized as legal tender within Fiji. In a comprehensive announcement, the bank detailed prohibitions against the use of domestically sourced funds for purchasing or investing in cryptocurrencies, cautioning that penalties would apply to those who transact without the bank's consent.

As the international banking sector exhibits varied responses to the rise of cryptocurrencies, with some embracing the technology and others increasing regulations, the RBF has opted for a stringent approach. Highlighting specific cryptocurrencies such as Bitcoin, Ether, and Tether, the bank declared that these could not be utilized for transactions involving goods or services in Fiji.

The central bank's latest press release went further to declare all cryptocurrency transactions within Fiji illegal if they involve local funding sources, including transactions facilitated by local debit and credit cards. The statement from the bank explicitly noted: "It is illegal for any individual or entity to purchase or invest in cryptocurrencies and virtual assets from funds held in Fiji. This includes the use of locally issued debit cards and credit cards (scheme cards) to pay for such transactions."

Fiji ranks among the nations with the lowest cryptocurrency adoption globally. However, the growing presence of cryptocurrency investment promotions on social media has become a concern for Fijian bank officials, who fear these could mislead the public into risky financial activities.

Governor Ariff Ali of the RBF has confirmed that the bank has not granted any licenses or permits for cryptocurrency operations within Fiji's jurisdiction. He advised the Fijian public against engaging in any cryptocurrency-related investment or trading schemes that are currently being marketed in the country.

Fiji joins several other nations in outlawing cryptocurrency dealings. Despite such legal restrictions, enforcing these bans remains challenging, which may push the cryptocurrency market into clandestine operations. This reflects a broader global issue where, despite official prohibitions, the allure of digital assets continues to draw investment into underground markets.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.