Regulation
Zimbabwe joins cryptocurrency rush and seeks public input on regulations
2024-06-12 07:38:20 ET
Zimbabwe is seeking comments on the cryptocurrency industry to set policy for the sector, media reported on Wednesday.
The government has set up a committee to consult operators in the digital assets sector and wants comments by June 26.
Countries around the world have sought to understand cryptocurrencies and regulate the nascent industry. South Africa has recently started registering companies and Nigeria has established its approach to cryptocurrencies in recent years.
To keep pace with the global race, Zimbabwe is exploring global regulations on cryptocurrencies and is inviting the public to contribute to better understand and regulate the sector.
Consultation with interested parties
The government is seeking feedback from both local and international encryption service providers and the general public. Zimbabwe’s latest move demonstrates its proactive approach towards mainstreaming digital asset governance.
The government has formed a committee that will collect and analyze feedback to develop crypto regulations while striking a balance between innovation and security.
“In line with global trends and best practices, Zimbabwe is undertaking an exercise to assess and understand the cryptocurrency landscape,” the government said in a statement published in the state-run Herald newspaper on Wednesday.
It is “inviting all cryptocurrency service providers”, whether they operate inside or outside the country but provide services to people in Zimbabwe, to provide comments.
Submission deadline and details
The deadline for submitting comments is June 26. This effort is part of Zimbabwe’s broader initiative to create a regulatory framework that addresses the unique challenges and opportunities presented by cryptocurrencies.
By seeking input from various stakeholders, the government aims to create a well-informed policy that promotes innovation while ensuring consumer protection and financial stability.
Zimbabwe’s position in the global crypto business
According to Chainalysis’s report on global cryptocurrency activity, Zimbabwe is ranked 103rd, behind second-placed Nigeria and 21st-placed Kenya.
Despite its lower ranking, Zimbabwe surpasses over 50 nations in the use of cryptocurrencies in the 2023 ranking. This indicates a growing interest and commitment to cryptocurrencies within the country.
Zimbabwe has also experimented with digital assets to address its economic challenges. The government has introduced a gold-backed digital token, called
ZiG
as part of its efforts to stabilize the economy.
This initiative reflects Zimbabwe’s willingness to explore innovative solutions in the digital asset space.
Regional context and global trends
Zimbabwe’s efforts to regulate the cryptocurrency sector are part of a broader trend in Africa and around the world. South Africa has begun registering crypto companies to bring more oversight and legitimacy to the industry.
Nigeria has been working on its approach to cryptocurrency regulation for several years, reflecting the continent’s growing commitment to digital currencies.
By seeking public input and developing a comprehensive regulatory framework, Zimbabwe aims to position itself as a proactive player in the global cryptocurrency landscape.
This move could help attract investment, promote innovation and provide a more secure environment for digital asset transactions.
As the June 26 deadline approaches, the government expects to receive valuable insights from various stakeholders, which will contribute to the development of balanced and effective crypto regulations.
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