A Move Set to Take Centre Stage In Africa
Zimbabwe a third world country, located in Southern Africa is leading in regulating the fast-emerging sector of cryptocurrencies after they initiated a wide-ranging study of the Cryptocurrency market. The study is meant to demystify and be used in controlling their industry connected to cryptocurrencies.
Furthermore the study will involve local and international players operating within the country’s borders, so as to give recommendations on the way forward regarding the regulation of dealing in virtual assets in Zimbabwe.
The First Comprehensive Crypto Study Of its kind
Common tabloid the Zimbabwe Mail reported on June 12 the formation of a committee by the government to collect data from crypto firms operating in the country.
Moreover the key idea behind the research is to gain full knowledge of the crypto landscape, in terms of size, scope and operations within Zimbabwe.
A Cochete committee has called on local and international crypto players to contribute setting the deadline for submission for 26 June 2024.
Innovation of the regulatory framework will help bolster the financial system in Zimbabwe.
Unveiling the Crypto Ecosystem In Africa
Nick Mangwana, the Permanent Secretary for Information and Publicity in the Republic of Zimbabwe, has just tweeted on the same, which he termed as a ‘comprehensive project.’
According to him, mapping the different ‘actors and activities’ in the crypto space would easily help to depict its picture and scope.
Nick Mangwana stated:
“First, we seek to understand the nature and extent of the cryptocurrency ecosystem in Zimbabwe to create a mapping of the various actors and activities within this space and create a truly precise picture of its scope and scale.”
Additionally the study looks into risks such as money laundering and other similar activities attached to these assets.
Due to anonymization and decentralization reflecting characteristics of the said and any risk associated needs to be traced and weathered.
Paving the Way for Regulatory Clarity
It is said the research will hopefully result in one big comprehensive regulation framework. Not only for innovation in the Cryptocurrency space, but also further strengthen the financial system of Zimbabwe.
These moves clearly show the developing trend of crypto adoption by African countries. Most Africans use cryptocurrencies to circumvent banking and foreign exchange rate restrictions.
Some governments duly acknowledge that these assets will benefit the citizens.
Just one among the many other strides on the African continent, countries like Kenya are making great moves in developing their crypto industries.
With fast-growing cryptocurrency adoption across the continent, there is more of a critical need for clear regulations.
Conclusion
Indeed, the Zimbabwean case study to map and regulate its crypto industry is a very essential step, towards building a strong and broader innovative financial system for the Sub-Saharan Country.
By garnering insights from the locals and most importantly, international firms the government of Zimbabwe aims to develop an effective framework on regulation in terms of risk and growth.
