Regulators around the world are ramping up their crypto oversight to mitigate risks associated with decentralization and anonymity. Zimbabwe is the latest nation to do so. The Southern African country has asked service providers to weigh-in on crypto asset operations in a bid to appropriately regulate the industry.
In a recent statement, Government representatives reportedly said,
“In line with global trends and best practices, Zimbabwe is embarking on an exercise to assess and understand the cryptocurrency landscape. [We’re] inviting all cryptocurrency service providers.”
It doesn’t matter if providers are based in or out of Zimbabwe. As long as they are providing services to the natives, they can make comments and suggestions.
The government has also established a committee to consult operators within the crypto ecosystem. The government expects all comments to be turned in by June 26.
Nick Mangwana, the Information and Publicity Permanent Secretary, further pointed out that this exercise will help the government understand the crypto ecosystem within Zimbabwe better.
Alongside, it will present regulators with a better picture of the underlying risks and help in roping-in measures to ensure that this asset class is not misused for money laundering, terrorism financing, and other illicit activities.
He added,
“The purpose of this exercise is multi-faceted. 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 regulatory framework that will be put to sea will “strike a balance” between propelling innovation and ensuring the security and integrity of the broader financial ecosystem.
