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.”
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 to The Zimbabwe Mail.
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.
South Africa’s🇿🇦 Financial Regulator, FSCA, Declares Crypto Assets as a Financial Product
A crypto asset is used as an investment vehicle… and it resembles a financial product – you invest in it, you get returns from it.” – FSCAhttps://t.co/FOAe4pMmy3
— BitKE (@BitcoinKE) October 21, 2022
In Zimbabwe’s case, the official notes that the announced excercise 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.”
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This initiative demonstrates Zimbabwe’s proactive strategy to engage with the global digital economy while protecting against potential threats.
As cryptocurrencies become increasingly popular globally, the insights from this exercise are anticipated to be crucial in shaping Zimbabwe’s policy and regulatory framework in this dynamic and fast-evolving sector.
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