Fiji Central Bank threatens with criminal prosecution for investments in cryptocurrency

The regulator’s stance is in line with a new IMF report on the risks of using cryptocurrencies in Pacific Island nations

16.04.2024 - 11:30

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What’s new? The Reserve Bank of Fiji (RBF) has warned citizens against using cryptocurrencies for payments and investments. In a statement, the regulator emphasizes that residents could face criminal charges, among other things, if they use “funds held in Fiji” to invest in cryptocurrencies abroad.

Press release

What else is known? RBF emphasizes that it has not licensed any individual or entity to provide cryptocurrency investment or trading services. However, the Governor of the RBF Ariff Ali acknowledged that such services are promoted in the country, including through social media.

RBF reminded that cryptocurrencies are not legal tender in Fiji and therefore cannot be used or accepted to pay for goods and services in the country.

Any person who violates the regulator’s position on the use and promotion of cryptocurrencies may be subject to penalties under the RBF Act 1983 and the Exchange Control Act 1950, the press release emphasized. For example, penalties could follow if a Fiji resident invests overseas without prior approval from the central bank.

Meanwhile, Fiji’s Prime Minister Sitiveni Rabuka allegedly proposed to recognize Bitcoin as a means of payment in late 2022, as reported by the politician’s supporters.

The new RBF statement is in line with the International Monetary Fund’s (IMF) recommendations on cryptocurrency. In February, the IMF published a paper on the use of digital money in Pacific Island countries, where it called cryptocurrencies “poor substitutes for means of payment, and they carry additional macroeconomic risks.”

Late last year, the Central Bank of India also opposed the integration of cryptocurrencies into the financial system. In July, the Kuwaiti authorities confirmed the ban on the use of cryptocurrencies as a means of payment.

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