Zimbabwe consults crypto firms on virtual asset regulation needs

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The Zimbabwean government is currently developing regulations for the country’s cryptocurrency industry and seeks input from cryptocurrency service providers both within Zimbabwe and internationally.

According to a report published in The Zimbabwe Mail, the government has established a committee to gather information from crypto businesses offering services in Zimbabwe. It has set a June 26 deadline for comments.

Zimbabwe aims to regulate crypto

Nick Mangwana, the Permanent Secretary for Information and Publicity, stated that the initiative aims to gain a comprehensive understanding of Zimbabwe’s virtual assets ecosystem.

Mangwana said they aim to evaluate the dangers of cryptocurrencies being “misused for money laundering, terrorism financing, and other illicit activities.”

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

The Zimbabwean government hopes to create a regulatory structure tailored to the country’s specific needs and conditions. This framework will focus on striking a balance between fostering innovation and ensuring the security and integrity of the country’s financial system.

Related: Zimbabwe’s central bank to issue gold-backed digital currency: Repor

Zimbabwe tries to mitigate financial woes using crypto

The southern African nation is striving to keep pace with the growing trend of cryptocurrency adoption, particularly in countries experiencing financial challenges.

Zimbabwe introduced a central bank-issued digital currency backed by gold called Zimbabwe gold (ZiG) in May last year despite warnings from the International Monetary Fund.

The gold-backed digital currency proved successful and the government announced in October that it could now be used as a payment method.

For more than 10 years, Zimbabwe has struggled with inflation and currency fluctuation. Following a period of hyperinflation, the nation switched to the U.S. dollar as its official currency in 2009.

The government reintroduced the Zimbabwean dollar in 2019 to boost the flagging economy. However, it was followed by another cycle of high volatility. The administration chose to get back to using the U.S. dollar last year in an effort to control inflation.

Magazine: Bitcoin in Senegal: Why is this African country using BTC?

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