Zimbabwe seeks public input on crypto regulations: Report

June 12, 2024
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Zimbabwe seeks public input on crypto regulations: Report

Photo credit: wirestock/Freepik

Zimbabwe is seeking public comments on cryptocurrency operations as the South African country works on establishing regulations for the sector, news outlets reported on July 12, including Bloomberg.

The government has formed a committee to consult industry players and set a deadline for feedback by June 26, the media outlet reported, citing a statement published in the state-run newspaper Herald.

“Zimbabwe is embarking on an exercise to assess and understand the cryptocurrency landscape,” the government reportedly said in line with global trends and best practices. The national authority invites all virtual asset service providers, whether operating locally or internationally but providing services to residents, to provide comments.

Balancing innovation and integrity of Zimbabwe’s financial system

As reported by local news outlet The Zimbabwe Mail, Nick Mangwana, the permanent secretary of Zimbabwe’s Ministry of Information, Publicity, and Broadcasting Services, stated that the initiative aims to evaluate the country’s crypto landscape, describing the purpose of the exercise as “multi-faceted.” He said:

“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.”

Read more: Australia bans online gambling using Bitcoin, crypto credit cards

The government also wants to assess the potential risks associated with crypto, including the misuse of the asset for money laundering, terrorism financing, and other illegal activities.

“Given the anonymity and decentralization that characterize these digital assets, it is crucial to identify and mitigate any associated risks,” the secretary added.

The government’s initiative aims to inform the creation of a regulatory framework tailored to Zimbabwe’s unique context, balancing innovation with the protection of the financial system.

Zimbabwe’s digital asset adoption

The landlocked southern African nation ranked 103rd in Chainalysis’ latest crypto adoption report. While Zimbabwe did not rank as high as Nigeria and Kenya, which ranked second and 21st, respectively, it surpassed over 50 countries in crypto use in the ranking.

Last year, Zimbabwe introduced the Zimbabwe gold (ZiG), a central bank-issued digital currency backed by gold, to try and curb its economic woes. The initiative bore fruit later that year when the Reserve Bank of Zimbabwe announced it could now be used as a payment method.

Read more: 46% of US voters await crypto policies before investing: Survey

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