Zimbabwe Seeks Input from Crypto Firms on Virtual Asset Regulations

Key takeaways:

• The Zimbabwean government is now working on laws for the nation’s crypto market and is soliciting feedback from domestic and foreign crypto service providers.
• The goal of the Zimbabwean government is to provide a regulatory framework suited to the nation’s unique requirements and circumstances.

The Zimbabwean government is now working on laws for the nation’s crypto market and is soliciting feedback from domestic and foreign crypto service providers.

The Zimbabwe Mail reported that the government has formed a committee to collect data from crypto companies that provide services in Zimbabwe. The deadline for comments is June 26.

The initiative’s goal, according to Permanent Secretary for Information and Publicity Nick Mangwana, is to get a thorough grasp of Zimbabwe’s virtual assets ecosystem.

According to Mangwana, their goal is to assess the risks associated with crypto abuse for “money laundering, terrorism financing, and other illicit activities.” Mangwana stated further:

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

The goal of the Zimbabwean government is to provide a regulatory framework suited to the nation’s unique requirements and circumstances. The main goal of this framework is to strike a balance between protecting the integrity and security of the nation’s financial system and promoting innovation.

Zimbabwe is making an effort to keep up with the rising trend of crypto adoption, especially in nations experiencing financial difficulties.

Despite warnings from the International Monetary Fund, Zimbabwe created Zimbabwe gold (ZiG), a digital currency backed by gold that was issued by the central bank in May of last year.

After the digital currency backed by gold showed its viability, the government declared in October that it may now be used as a means of payment.

Zimbabwe has experienced currency fluctuations and inflation for over a decade. In 2009, after a period of hyperinflation, the country adopted the US dollar as its official currency.

In an effort to strengthen the faltering economy, the government reinstated the Zimbabwean dollar in 2019. But another period of extreme volatility came right after it. In an attempt to rein in inflation, the administration decided to resume utilizing the US dollar last year.