Regulation
Zimbabwe officials announce steps to assess local crypto sector and introduce regulatory framework – BitKE
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, Permanent Secretary for Information and Publicity.
“First, our objective is to determine the nature and extent of the cryptocurrency ecosystem in Zimbabwe. This involves mapping the different actors and activities within the space to get a clearer idea of its scope and scale.
The government also aims to assess and understand the potential risks associated with cryptocurrencies.
“Our goal is to assess the dangers of misuse of cryptocurrencies for money laundering, terrorist financing and other illicit activities. Given the anonymity and decentralization that characterizes these digital assets, it is crucial to identify and mitigate the associated risks,” Mangwana told Zimbabwe Mail.
Additionally, Zimbabwe is looking to follow South Africa’s lead by introducing a regulated legal mandate for virtual assets and cryptocurrencies.
In 2022, for the first time in 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 cryptocurrency market, such as fraud and money laundering.
South African Financial Regulator FSCA Declares Crypto Assets as a Financial Product
A crypto asset is used as an investment vehicle… and it’s like a financial product: you invest in it, you get returns. – FSCAhttps://t.co/FOAe4pMmy3
–BitKE (@BitcoinKE) October 21, 2022
In the case of Zimbabwe, the official notes that the announced exercise will guide the creation of a regulatory framework tailored 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 promoting innovation and ensuring the security and integrity of our financial system. »
See also
This initiative demonstrates Zimbabwe’s proactive strategy to engage in the global digital economy while protecting itself against potential threats.
As cryptocurrencies become increasingly popular globally, the lessons learned from this exercise are expected to be crucial in shaping Zimbabwe’s policy and regulatory framework in this dynamic and rapidly evolving sector.
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