Nauru

**Report on the Current Status of Retail Cryptocurrency Trading in Nauru**

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Current Status:** **Allowed-Unregulated**

**2. Detailed Narrative Explanation:**

Based on available information, retail cryptocurrency trading (buying, selling, holding) appears to be legally permitted in Nauru, primarily because there are no specific laws or regulations prohibiting or governing it. Nauru does not have a dedicated regulatory framework for cryptocurrencies or digital assets. This lack of specific regulation means that while individuals can engage with cryptocurrencies, they do so in an environment without targeted legal protections, oversight, or specific guidelines from financial authorities.

Several sources confirm that cryptocurrency is considered "legal" in Nauru in the sense that it is not banned, but emphasize the absence of a specific regulatory structure. This creates a situation where activities are largely informal and operate within a legal vacuum concerning digital assets. General financial laws might apply to related illicit activities (like money laundering), but the act of trading or holding crypto itself is not specifically addressed by Nauruan law.

Nauru has taken steps to update its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) framework, notably with the Anti-Money Laundering and Targeted Financial Sanctions Act 2023 (AML-TFS Act 2023). This Act defines Virtual Asset Service Providers (VASPs) and acknowledges that any VASP operating in Nauru would need a business license under the Business Licences Act 2017 and be subject to AML/CFT supervision by the Financial Intelligence Unit (FIU). However, reports indicate that there are currently no known VASPs operating in Nauru. The FIU has stated that should VASPs establish themselves, a proper legislative framework with sanctions consistent with FATF Recommendation 15 would be implemented.

The Nauru FIU, established under the Department of Justice & Border Control, is the primary body responsible for AML/CFT supervision. While the legal framework acknowledges VASPs, the practical reality is that the crypto market remains unregulated due to the absence of registered operators and specific crypto-focused legislation. Nauru's small size and limited financial infrastructure likely contribute to the informal nature of crypto activities, often involving smaller, peer-to-peer transactions.

Therefore, while legally permissible due to the absence of prohibition, retail crypto trading operates without specific regulatory oversight, investor protection mechanisms, or licensing requirements tailored to the crypto industry.

**3. Specific Relevant Text Excerpts:**

*   **UPay Blog (Dec 2024):** "As of 2024, cryptocurrency trading and investment are legal in Nauru, but the nation is still working on defining its regulatory framework for digital currencies. This means that while individuals and businesses in Nauru can legally trade and hold cryptocurrencies... the government has not yet developed detailed laws or a regulatory framework specifically for cryptocurrency activities. This legal vacuum allows people to use digital assets but without clear guidelines from regulators..."
*   **UPay Blog (Dec 2024):** "In Nauru, cryptocurrency is legal, but there aren't any specific rules or regulations to guide its use. This means people can use crypto freely but without legal protections or oversight."
*   **Cryptocurrency Regulation Tracker (Vertex AI Search):** "Nauru. Undecided. No legal status for cryptocurrencies; There is no cryptocurrency regulation." *(Note: While labeling it 'Undecided', the description points to a lack of regulation, aligning with 'Allowed-Unregulated')*
*   **Invezz (Feb 2025):** "Yes, buying Bitcoin is legal in Nauru. You can safely buy and sell cryptocurrency using a Nauruan crypto exchange. However, many cryptocurrency exchanges aren't regulated in Nauru, as the legislation has yet to catch up with the reality of the crypto market."
*   **CryptoPenetration.com:** "Based on local Financial Intelligence Unit there are no VASP operators in Nauru. However, VASP operators (6) are legally defined in the AML-TFS Act 2023 of Nauru. Based on that document any VASP operating in the country needs a business license under BLA 2017. Based on the document mentioned above there is still no separate crypto regulation framework in the country."
*   **Nauru FIU VASP Policy:** "There are no known VASPs currently operating in Nauru. However, should a VASP intend to commence operations it would have to comply with the requirements set out below... A VASP is subject to the requirements of Recommendation 15 of the FATF Standards as such, the activities and operations will be subject to the requirements of the AML-TFS Act 2023."
*   **Nauru FIU VASP Policy:** "Since Nauru does not have any such operators currently to its knowledge, there are no laws made for them. However, any such presence will certainly be met with a proper legislative framework..."

**4. Source Links:**

*   **UPay Blog - Nauru Crypto Status:** [https://upay.digital/blog/crypto-law-in-nauru/](https://upay.digital/blog/crypto-law-in-nauru/) (Note: While a blog, it provides specific details consistent with other findings. Treat as a secondary source.)
*   **Invezz - Buy Bitcoin in Nauru:** [https://invezz.com/buy-bitcoin/nauru/](https://invezz.com/buy-bitcoin/nauru/) (Secondary source, investment information site)
*   **CryptoPenetration - Nauru:** [https://cryptopenetration.com/nauru/](https://cryptopenetration.com/nauru/) (Secondary source, crypto information site)
*   **Nauru Department of Justice & Border Control - FIU VASP Policy:** [https://naurugov.nr/departments/justice-border-control/financial-intelligence-unit-(fiu).aspx](https://naurugov.nr/departments/justice-border-control/financial-intelligence-unit-(fiu).aspx) (Scroll down to find VASP Policy PDF link - Primary Source)
*   **Nauru Department of Justice & Border Control - FIU General Information:** [https://naurugov.nr/departments/justice-border-control/financial-intelligence-unit-(fiu).aspx](https://naurugov.nr/departments/justice-border-control/financial-intelligence-unit-(fiu).aspx) (Primary Source)
*   **IMF Staff Report - Nauru 2023 Article IV Consultation:** [https://www.elibrary.imf.org/view/journals/002/2023/374/article-A001-en.xml](https://www.elibrary.imf.org/view/journals/002/2023/374/article-A001-en.xml) (Reputable Secondary Source - Mentions digital finance challenges but not specific crypto regulation)
*   **Nauru Government Gazette (Dec 19, 2024):** [https://ronlaw.gov.nr/nauru_gazette/nauru-gazette-no-204-2024-dated-19th-december-2024/](https://ronlaw.gov.nr/nauru_gazette/nauru-gazette-no-204-2024-dated-19th-december-2024/) (Primary source - Shows trademark applications including crypto-related services, indicating potential future activity but not current regulation)