Regulation
Zimbabwean Officials Announce Measures to Assess Local Crypto Sector and Introduce Regulatory Framework – BitKE
According to local reports, the Government of Zimbabwe has announced a global initiative to assess the country’s cryptocurrency sector.
“The purpose of this exercise is multifaceted,” said Information and Publicity Permanent Secretary Nick Mangwana.
“Firstly, we aim to determine the nature and extent of the cryptocurrency ecosystem in Zimbabwe. This involves mapping the various actors and activities within the space to get a clearer picture of its scope and scope.”
The government also aims to evaluate and understand the potential risks related to cryptocurrencies.
“Our goal is to assess the dangers of misusing 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 any associated risks,” Mangwana told The 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, the Financial Sector Conduct Authority (FSCA) of South Africa they classified cryptocurrencies as financial products requiring regulatory oversight. According to the authority, this aims to protect consumers from inherent risks associated with the cryptocurrency market, such as fraud and money laundering.
South Africa’s financial regulator, FSCA, declares cryptocurrencies as a financial product
A crypto asset is used as an investment vehicle… and resembles 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 customized to Zimbabwe’s unique needs and circumstances.
“We intend to recommend an appropriate regulatory framework for cryptocurrencies and cryptocurrency service providers,” Mangwana added.
“This framework will aim to strike a balance between promoting innovation and ensuring the safety and integrity of our financial system.”
Look also
This initiative demonstrates Zimbabwe’s proactive strategy to engage with the global digital economy while protecting itself from potential threats.
As cryptocurrencies become increasingly popular globally, insights 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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