### What happened?
Vanuatu has passed a new crypto regulation law called the Virtual Asset Service Provider (VASP) Act. The act gives the Vanuatu Financial Services Commission (VFSC) authority to issue licenses and regulate crypto businesses. This marks a significant step towards formal oversight of digital asset services in the country.
### Who does this affect?
This new regulation impacts virtual asset exchanges, NFT marketplaces, custody providers, and even banks that want to offer crypto services. It affects businesses in the crypto industry looking to operate under compliance in Vanuatu. Additionally, it provides safeguards for consumers and investors engaging with these digital services.
### Why does this matter?
Vanuatu’s regulation is likely to have a significant impact on its financial market landscape by attracting legitimate crypto businesses and investments. It aligns with global standards, enhancing the country’s reputation as a secure environment for digital assets. As more offshore jurisdictions adopt similar regulations, this could influence global crypto market dynamics and push for higher compliance standards worldwide.