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Reserve Bank of Fiji declares use of Bitcoin and other cryptos illegal

TL;DR

  • Fiji legally prohibits cryptocurrency as a payment method.
  • RBF enforces penalties for unauthorized crypto transactions.
  • No entity is licensed for crypto trade in Fiji.

Reserve Bank of Fiji (RBF),has recently released a report warning  the public of the cryptocurrencies dangers, for example, Bitcoin, along with Ethereum, and Tether. It reveals a dissonance in discussions by the Fijian authorities who, in a past discussion, had spoken about the possibility of the nation’s integration of Bitcoin into the local economy.

Fiji Central Bank has made it illegal to use crypto

The RBF’s latest press statement clearly states that digital currencies are not considered legal, that’s why they prohibited their use as a tender for purchase in Fiji. The Bank, therefore, affirms that it is the upholder of the only legal tender in the country, which is the notes and coins issued by the RBF, basing this on the RBF Act of 1983.

This warning is a reaction to the growing tendency to advertise virtual currencies through numerous platforms, including social networks, which might be, unfortunately, the reason why many people don’t have a clear understanding of the legal status and riskiness of investment of this sort..

RBF explained that such volatility involves the role of domestic funds, including both the use of Fiji’s credit and debit cards for such transactions, and is illegal. The bank went further and said the clients might possibly be imposed with penalties by law in terms of the very strict and quite onerous Exchange Control Act.

In this repression neither a prevention action nor an insurance action is done by RBF residents on financial activity it does not permit to do. Mr. Ali as the new Governor of the RBF underlines that no licenses have been issued in Fiji to those who are interested in offering cryptocurrency investments, or trading services.

Public caution urged

The citation of the prime bank is surely a critical notice to the residents to avoid being involved in the transactions or investment of digital currencies. RBF had like declared to be neither responsible for the aggressive marketing of the scheme, nor the danger resulting from this type of marketing to the investors.

Fijians should now be more aware of the risks possible and be warned that violating RBF stipulations on cryptocurrency may lead them to grave consequences, according to RBF and Exchange Control Acts-related laws. While the global crypto discussion continues, Fiji’s central bank is still in position; the central bank focuses on the integrity of currency and the safety of citizens. The revelation of RBF shows it is time for all institutional and individual investors to stick to local financial laws and regulations.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision. 

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Emman Omwanda

Emmanuel Omwanda is a blockchain reporter who dives deep into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), and more. His expertise lies in cryptocurrency markets, spanning both fundamental and technical analysis.

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