FameEX Hot Topics | Fiji Central Bank Issues Warning on Cryptocurrency Purchase Penalties

The Reserve Bank of Fiji (RBF) has issued a stark reminder to its citizens that cryptocurrencies do not constitute legal tender in Fiji. In a recent announcement, the bank underscored the prohibition against purchasing cryptocurrencies with funds sourced within the country. It warned of penalties for those who engage in such transactions without explicit authorization from the bank.

As the global banking landscape shows a mixed reaction to cryptocurrencies—with some institutions opening up to them while others tighten regulations—the RBF has clarified its stringent position. The bank specifically named Bitcoin, Ether, and Tether, stating that these digital currencies cannot be used for buying goods or services in Fiji.

The central bank has reiterated that any dealings in cryptocurrencies from within Fiji are considered illegal. The recent press release emphasized the illegality of buying or investing in any form of digital assets using funds from Fiji, including the use of local debit and credit cards for such transactions. The bank's statement detailed:

"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."

Despite being among the countries with the lowest adoption of cryptocurrencies globally, Fiji faces challenges due to the proliferation of cryptocurrency investment promotions via social media. This has raised concerns among bank officials about the potential misguidance of the public toward risky investments.

RBF Governor Ariff Ali has affirmed that the bank has not issued any licenses or permits for cryptocurrency investment on Fijian soil. He strongly advised the public to avoid participating in any cryptocurrency investment or trading schemes being promoted within the country.

Fiji is part of a group of nations where dealing in cryptocurrencies is illegal. Like in other countries, enforcing this ban proves difficult, potentially driving the cryptocurrency market underground. This scenario mirrors the challenges other markets face, where despite prohibitions, the allure of digital assets continues to attract investors into shadow economies.

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