The government wants to understand crypto to regulate it, help them know what’s what

As Zimbabweans, we love complaining about how our government resists innovation and progress. They usually give us reason to complain so but once in a while, Zimbabwe gets on a train early. Zimbabwe is now seriously looking at cryptocurrencies and that’s good to see.

We aren’t exactly early to the train when it comes to crypto though, even if most governments still look suspiciously at crypto. In Zimbabwe, our initial reaction was to ban what we didn’t understand which led to a booming underground crypto ecosystem.

Now, the government realises there is this huge sub-economy they don’t know about and they are finally doing something about it.

The first domino was the licensing of VCG Markets, the first offshore broker licensed so. VCG offers access to multiple assets, including crypto, if you’re willing to call it an asset. So, right now, you can legally trade in crypto through this one broker in Zimbabwe.

After that licensing, the government now wants to regularise the whole sub-economy that grew in the shadows whilst they wished it away.

The government is inviting all to participate in an evaluation of the crypto landscape in Zimbabwe. This is so they understand it, including how it can be used for illicit activities, and then come up with an appropriate regulatory framework.

It is imperative that we participate in stuff like this. If not, we cannot complain if they come up with a backward regulatory framework. As you’ll see, they seem particularly concerned about how crypto can or is being misused for money laundering and terrorism financing.

It’s up to us to paint the whole picture, along with them, so that a few bad apples don’t ruin it for all.

Evaluation of crypto landscape

Government of Zimbabwe

INVITATION TO PARTICIPATE IN AN EVALUATION OF THE CRYPTO-ASSET LANDSCAPE IN ZIMBABWE

1. In line with global trends and best practices, Zimbabwe is embarking on an exercise to assess and understand the crypto-currency (also referred to as virtual assets) landscape in Zimbabwe. The purpose of the exercise is to, among other things:

• determine the nature and extent of the crypto-currency ecosystem in Zimbabwe;

• assess and understand the risks of cryptocurrencies being misused For money laundering, terrorism financing and other illicit purposes; and

• to recommend an appropriate regulatory framework for crypto-currency and crypto-currency service providers.

2. Crypto-currency service providers include; any company, partnership, trust, individual or business that provides blockchain, crypto-currency or crypto-currency services, including (but not limited to) custodial and nom-custodial crypto-currency wallet hosting, crypto-currency exchanges, cryptocurrency traders and brokers, cryptocurrency management providers, initial coin offering providers, crypto-currency investment providers, crypto-currency validatorsiminersfadministrators, cryptocurrency developers and crypto currency payment solutions.
3. As part of the assessment process, the government has constituted a multi-stakeholder committee and mandated it to consult stakeholders in the crypto currency ecosystem.
4. The Committee is, therefore, inviting all crypto-currency service providers, whether operating in Zimbabwe or based outside Zimbabwe, but providing services to customers in Zimbabwe, to provide input into the national assessment process by answering the questionnaire accessible through the following link https://forms.office.com/r/56ghZ0W5He
5. To ensure a comprehensive and timely assessment, we kindly request that you submit the completed questionnaire by Wednesday, 26 June, 2024.
6. For further information, please contact us via email at info@fiu.co.zw

National Risk Assessment Coordination Committee

Also read:

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