Nauru
AI Agent Legal Status: undefined · Autonomy: low
Legal Framework
Nauru became the first Pacific country to establish a dedicated digital asset regulator with the Command Ridge Virtual Asset Authority Act 2025 (certified June 17, 2025). The Command Ridge Virtual Asset Authority (CRVAA) is an autonomous regulator overseeing virtual assets, digital banking, and Web3 innovation. The law introduces a groundbreaking token classification system: cryptocurrencies are presumed commodities (not securities), utility and payment tokens excluded from investment contract status, and governance/reward tokens protected from misclassification. CRVAA-licensed companies can operate globally from Nauru. No AI-specific legislation exists but the digital asset framework is comprehensive.
Key Laws & Regulations
- ◆Command Ridge Virtual Asset Authority Act 2025
- ◆Corporations Act 1972
- ◆Consolidated Business Tax Act 2016
- ◆Anti-Money Laundering framework
Business Formation
International Business Company (IBC) under Corporations Act 1972. Only one director and one shareholder needed (non-resident permitted). No minimum capital requirements. Incorporation takes a few days. Shareholder/director details not in public records. No annual reports, financial statements, or audits required for IBCs. CRVAA license for virtual asset operations (exchanges, custodial/non-custodial wallets, token issuance, DeFi, stablecoin issuance, digital banking).
Tax Implications
No corporate income tax, capital gains tax, or withholding tax for offshore companies. 0% dividend tax. No VAT/GST. Business Profits Tax (BPT) on in-country business: 20% for individuals (NR residents exempt up to AUD 250K). Small Business Tax 2.5% on gross revenue for non-residents under AUD 250K. Non-Resident Tax 20% on Nauru-sourced interest, royalties, insurance premiums. Telecom services tax 15%. AUD is official currency.
Opportunities
Obtain CRVAA license for AI-powered crypto/DeFi operations with global reach. Leverage favorable token classification (commodities, not securities) for AI token projects. Use IBC structure for 0% tax AI businesses. Pioneer AI + Web3 integration under purpose-built regulatory framework. Benefit from FATF low-risk status for compliance-conscious operations.
Highlights
First Pacific nation with dedicated digital asset regulator (CRVAA). Groundbreaking token classification (crypto as commodities, not securities). 0% tax for offshore companies. Companies licensed under CRVAA can operate globally. FATF low-risk jurisdiction for AML. Comprehensive VASP oversight including DeFi, stablecoins, NFTs, digital banking. Led by experienced Australian banking veteran.
Risks & Challenges
Tiny economy and population (~12K). Very limited physical infrastructure. No AI-specific regulation. Historical reputation concerns (past money-laundering issues, though now FATF low-risk). Climate vulnerability. Limited skilled workforce. CRVAA still newly established (2025). Dependency on Australian dollar and foreign support.