Zimbabwe is seeking to follow the lead of South Africa by introducing a regulated legal mandate for virtual assets and cryptocurrencies. Zimbabwe Crypto
In Zimbabwe’s case, the Information and Publicity Permanent Secretary notes that the announced exercise will guide the creation of a regulatory framework customized to Zimbabwe’s unique needs and circumstances.
According to local reports, the Zimbabwean government has announced a comprehensive initiative to evaluate the country’s cryptocurrency sector.
“The purpose of this exercise is multi-faceted,” said Nick Mangwana the Information and Publicity Permanent Secretary. “Firstly, we aim to determine the nature and extent of the cryptocurrency ecosystem in Zimbabwe. This involves mapping out the various actors and activities within the space to get a clearer picture of its scope and scale.”
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The government also aims to evaluate and comprehend the potential risks linked to cryptocurrencies.
“Our objective is to evaluate the dangers of cryptocurrencies being misused for money laundering, terrorism financing, and other illicit activities. Given the anonymity and decentralization that characterize these digital assets, it is crucial to identify and mitigate any associated risks,” Mangwana explained.
Additionally, Zimbabwe is seeking to follow the lead of South Africa by introducing a regulated legal mandate for virtual assets and cryptocurrencies.
In 2022, in a first for Africa, South Africa’s Financial Sector Conduct Authority (FSCA) classified crypto assets as financial products requiring regulatory oversight. According to the authority, this aims to protect consumers from the inherent risks associated with the crypto market, such as fraud and money laundering. Zimbabwe Crypto
In Zimbabwe’s case, the official notes that the announced exercise will guide the creation of a regulatory framework customized to Zimbabwe’s unique needs and circumstances.
“We intend to recommend an appropriate regulatory framework for cryptocurrency and cryptocurrency service providers,” Mangwana added. “This framework will aim to strike a balance between fostering innovation and ensuring the security and integrity of our financial system.”
