Wallis and Futuna Cracks Down on Online Gaming and Cryptocurrency with New Regulatory Framework
The government of Wallis and Futuna has introduced a comprehensive set of regulations governing online gaming and cryptocurrency activities in the territory, aiming to bring much-needed clarity and stability to its financial sector.
Influenced by European Regulations
The new framework is heavily influenced by the Markets in Crypto Assets (MiCA) regulation from Europe, which mandates an assessment of decentralized finance (DeFi) developments and potential regulatory requirements for the entire European Union by December 30, 2024.
Regulatory Council Emphasizes Vigilant Oversight
The Wallis and Futuna Regulatory Council has emphasized the importance of vigilant oversight over DeFi and online gaming progressions. The council is working closely with the Prefect, Territorial Assembly, WallisFutuna.Org (WFO), and Chamber of Commerce and Industry, Trades, and Agriculture (CCIMA) to establish a transitional framework for online gaming licenses.
Online Gaming Licenses
In preparation for the entry of online gaming enterprises into the territory, WFO has been designated as an autonomous advisory entity responsible for licensing and interim oversight of the sector. The organization will process applications for online gaming licenses submitted by operators seeking direct licenses from CCIMA, including the registration of sub-licensees pursuing online gaming licenses through contractual arrangements with incumbent license holders.
Cryptocurrency Regulation
The new regulations also address the growing prominence of cryptographic assets in recent years, characterized by unregulated “boom and bust” cycles. Wallis and Futuna has recognized the importance of adapting regulatory measures to nurture a thriving financial ecosystem within the Pacific region while safeguarding investor interests.
CCIMA’s Approach to Crypto Regulation
CCIMA advocates for a sensible equilibrium in crypto regulation that balances investor protection with innovation-fostering environments. WFO has spearheaded the formulation of a robust regulatory framework underscored by vigilant oversight, designed to instill trust among stakeholders and propel the expansion of the crypto ecosystem across the Pacific and beyond.
Lessons from Adverse Occurrences
The new regulations draw lessons from adverse occurrences within the crypto landscape, including the collapse of crypto-asset service providers. The expansive regulatory initiative encompasses measures such as:
- Digital Operational Resilience Act (DORA)
- DLT Pilot Regime
- Transfer of Funds Regulation (TFR)
Endorsement by France’s AMF
All of these measures have received endorsement from France’s Autorité des Marchés Financiers (AMF) in compliance with regulatory requirements.
Expected Outcomes
The introduction of this new regulatory framework is expected to bring much-needed stability and clarity to the financial sector in Wallis and Futuna, providing a platform for innovation while safeguarding investor interests.