Zimbabwe Sets Up Committee for Crypto Regulations

Key Takeaways:

• Zimbabwe sets up a group to study and create rules for cryptocurrency use in the country.
• They want to hear from people who use crypto and the companies involved.
• The goal is to keep people safe and let crypto grow responsibly in Zimbabwe.

Zimbabwe Government Forms Committee to Study Crypto Landscape

Zimbabwe has become one of the countries recognizing the potential of digital assets as it takes a bold step towards regulating the cryptocurrency ecosystem within its borders.

According to a Bloomberg report on June 12, the government announced the establishment of a committee dedicated to studying and proposing a framework for cryptocurrency operations.

Zimbabwe has asked for public input on cryptoasset operations as it works on regulatory policy for the sector https://t.co/ZZGkDVt6uh

— Bloomberg Crypto (@crypto) June 12, 2024

This move comes as digital currencies, like Bitcoin and Ethereum, gain traction globally, and Zimbabwe seeks to navigate this new financial landscape.

The National Risk Assessment Coordination Committee (NRACC) will comprehensively assess the current state of cryptocurrency use in Zimbabwe.

This includes identifying cryptocurrency service providers operating within the country and those offering services to Zimbabwean residents from outside the national borders.

Bloomberg cited a government statement published in the state-run Herald newspaper as saying, “In line with global trends and best practices, Zimbabwe is embarking on an exercise to assess and understand the cryptocurrency landscape.”

This proactive approach establishes a regulatory framework that fosters innovation while protecting consumers and mitigating potential risks.

NRACC to Assess Service Providers and Public Input

The NRACC's tasks will involve soliciting input from various stakeholders within the cryptocurrency industry. This includes cryptocurrency exchanges, trading platforms, and other service providers facilitating cryptocurrency transactions for Zimbabweans.

The committee will also extend its outreach to the general public, inviting comments and concerns from individuals who utilize cryptocurrencies.

Furthermore, the government emphasizes the importance of public participation in this process. A key objective is to develop a regulatory framework informed by a comprehensive understanding of the cryptocurrency ecosystem and its potential impact on the economy of Zimbabwe.

While the specific details of the proposed regulations remain unclear, the government has hinted at potential areas of focus. Consumer protection is likely to be a top priority, intending to safeguard Zimbabweans from fraudulent activities or inherent scams associated with cryptocurrencies. 

The committee might also explore measures to prevent money laundering and other financial crimes that could utilize cryptocurrencies.