PANews reported on June 19 that according to Cointelegraph, the Pacific island nation of Nauru has passed legislation to establish a virtual asset regulatory agency (CRVAA) to oversee cryptocurrencies, digital banks and Web3 innovations. The bill defines cryptocurrencies as commodities rather than securities, and payment tokens are not included in the scope of investment contracts. The new regulations cover exchange operations, ICOs, NFTs, lending and DeFi services, and regulate stablecoin issuance and cross-border payments.

Nauru President David Adeang said the move is aimed at promoting the country to become a digital asset center in Oceania and enhancing economic resilience through diversified income. The country previously allowed cryptocurrency trading but lacked specific regulation. Nauru has an area of 21 square kilometers and a population of about 12,500, making it the third smallest country in the world.