Fiji's Central Bank Warns: Cryptocurrencies Illegal to Use, Trade, or Invest In

In response to the growing popularity of digital asset investment schemes, the Reserve Bank of Fiji (RBF) has issued a warning against the use, trading, and investing in cryptocurrencies within the country. Citing legal restrictions, the RBF clarifies that cryptocurrencies like Bitcoin, Ethereum, and Tether USD are not recognized as legal tender and their use for transactions is prohibited. Additionally, the bank prohibits residents from engaging in crypto trading or investing using funds held within Fiji, and warns that violations may result in penalties under the RBF Act of 1983 and the Exchange Control Act of 1950.

Reserve Bank of Fiji Issues Cautionary Warning on Cryptocurrencies

In light of the growing trend of digital asset investment schemes in Fiji, the Reserve Bank of Fiji (RBF) has issued an official press release cautioning the public against the use, trading, and investing in cryptocurrencies.

Cryptocurrencies Not Recognized as Legal Tender

The RBF emphasizes that cryptocurrencies, including Bitcoin (BTC), Ethereum (Ether), and Tether USD (USDT), are not recognized as legal tender in Fiji. Under the RBF Act of 1983, Fiji's legal tender is limited to currency notes and coins issued by the RBF. Consequently, any attempt to use cryptocurrencies for transactions involving goods and services within the country is deemed illegal.

Trading and Investment Prohibition

The bank further clarifies that engaging in crypto trading using funds held within Fiji is also illegal, as virtual assets are not recognized as investment offerings. This prohibition applies to both individuals and corporate institutions. Additionally, credit and debit cards locally issued in Fiji cannot be used to acquire or invest in digital assets.

Penalties for Violations

Violations of the RBF's directives regarding the use and promotion of digital assets may result in penalties under the RBF Act of 1983 and the Exchange Control Act of 1950. Citizens outside the country who invest in crypto without obtaining approval from the central bank may also face penalties under the Exchange Control Act.

No Authorization for Crypto Services

RBF Governor Ariff Ali stated that the cautionary warning stems from the growing prevalence of digital asset investment schemes being promoted in Fiji. He noted that these schemes are often advertised through social media platforms, despite the country's prohibition on crypto engagement.

The RBF has not authorized any individual or entity to offer crypto-related investment products to people in Fiji. This stance aligns with the government's broader efforts to discourage the adoption of financial innovations. The Fijian Competition and Consumer Commission has also issued warnings regarding the use and trading of digital assets in the region.

Global Trend

Fiji joins a growing number of countries that have adopted a cautious approach towards cryptocurrencies. Governments worldwide are grappling with the regulatory challenges posed by these emerging assets, balancing the potential for innovation with concerns about financial stability and consumer protection.

Conclusion

The RBF's warning serves as a reminder that cryptocurrencies remain a largely unregulated asset class in Fiji. The bank urges the public to exercise caution and avoid investing in or trading digital assets, as doing so may carry significant financial and legal risks.