Regulation
Zimbabwe seeks public feedback to shape its cryptocurrency regulatory policy | CryptoTvplus
- Zimbabwe is considering regulating its cryptocurrency sector and is calling for public response to align with global standards.
- Successful implementation of cryptocurrency regulations could set a precedent for other countries facing similar economic challenges.
- A committee has been formed to consult stakeholders, with a feedback deadline of June 26.
Zimbabwe is set to introduce regulations for its booming cryptocurrency sector, inviting the public and industry stakeholders to contribute to the development of the framework. With this initiative, the government aims to align with global trends and best practices in digital asset management.
According to local online media, a state newspaper, the Herald, reported The Zimbabwean government is on track to regulate the country’s cryptocurrency industry as of Wednesday. “In line with global trends and best practices, Zimbabwe is embarking on an exercise to assess and understand the cryptocurrency landscape,” the report said.
The government is calling on all cryptocurrency service providers and the public to provide feedback and information.
Zimbabwe, a landlocked country bordered by South Africa, Botswana, Zambia and Mozambique, is home to around 16 million people. In recent years, the country has faced enormous financial challenges, leading to a series of monetary reforms.
Last year, Zimbabwe introduced a virtual token backed by gold to combat chronic financial instability. In April, the country launched a new currency known as ZiG, short for Zimbabwe Gold, marking its sixth attempt to establish a stable local currency in 15 years.
The ZiG replaced the Zimbabwe dollar, which had collapsed several times since its reintroduction in 2019, exacerbating inflationary pressures.
The backdrop to Zimbabwe’s economic crisis dates back to 1999, when the country defaulted on its debts and was subsequently excluded from international capital markets.
Currently, Zimbabwe is working to restructure about $19.2 billion in debts owed to various creditors, including $13 billion to international investors.
To lead efforts to regulate cryptocurrencies, the Zimbabwean government has formed a committee to consult with stakeholders in the virtual asset ecosystem.
The government has set June 26 as the deadline to receive comments and suggestions from cryptocurrency operators and other interested parties.
The decision to regulate cryptocurrencies comes at a pivotal time for Zimbabwe’s economy. With the introduction of a structured regulatory framework, the government aims to promote a safe and transparent environment for cryptocurrencies that can attract investments and strengthen economic stability.
Given Zimbabwe’s volatile history of monetary policies and the crucial need for economic stability, the successful implementation of cryptocurrency regulations could play a major role in strengthening the country’s financial sector.
The outcome of this initiative could set a precedent for other countries facing similar economic challenges and considering integrating cryptocurrencies into their financial systems.