The Pacific nation of Nauru establishes a crypto regulatory body, positioning crypto assets as commodities rather than securities.

Gate News bot reports that, according to Cointelegraph, the small Pacific nation of Nauru has passed legislation to establish a dedicated regulatory agency for virtual assets, covering Crypto Assets, Digital Bank, and Web3 innovations, aiming to become a Crypto Assets hub.

Nauru is a sovereign island nation in the western Pacific, located northeast of Australia in Micronesia, with an area of about 21 square kilometers and a population of approximately 12,500 people. Nauru is the third smallest country in the world and the smallest island nation.

The Nauru government stated in a statement on Tuesday that the bill will establish the Command Ridge Virtual Assets Management Authority (CRVAA), responsible for overseeing the licensing program for Crypto Assets companies registered and providing services in Nauru.

According to the legislation, Crypto Assets are defined as commodities, rather than securities, and payment tokens do not fall under the status of investment contracts.

A series of crypto asset activities, such as operating a crypto asset exchange, ICO, non-fungible tokens, lending, staking, yield farming, and other decentralized financial services, will now be authorized by the CRVAA.

CRVAA will also regulate the issuance of stablecoins, cross-border payment solutions, and Digital Bank.