Zimbabwe has put an end to its previous hostile approach to cryptocurrencies by initiating a first-of-its-kind crypto policy to provide a recognized framework for crypto entities operating in the country.
In 2018, the Reserve Bank of Zimbabwe (RBZ) barred banks in the country from processing crypto transactions. The recent development represents a sharp turnaround in affairs in the country as regards cryptocurrency and the official government position on them.
In May 2024, The National Risk Assessment Coordination Committee (NRACC) appointed by the Zimbabwean government began consultations with crypto entities in the country toward finding common ground and coming up with regulatory frameworks that work for both parties.
The consultation ended in June with details of the meeting still largely unknown.
The government has additionally asked crypto entities to form lobby groups to deepen the process and hasten the arrival of common ground.
Zimbabwean Crypto Founders Reacts to the Development
For crypto entities in Zimbabwe, the development is a welcome affair given the wild west, which they have grown accustomed to dealing with.
Vusa Chimanikire, Zimbabwean founder of fintech startup Entry, echoed this statement to TechCabal when quizzed on the issue.
“Being able to speak directly with regulators presents a simpler gateway to building scalable products instead of having to try to bypass existing regulations because there are no enabling regulations,” Vusa stated
Zimbabwe which is notorious for its chronic currency devaluation attracted a lot of crypto entities as citizens turned towards cryptocurrency to mitigate the effect of Zimabwe’s failing currency.
Crypto exchanges like Binance, Coinbase, and local exchange Golix cashed on this demand from Zimbabweans. The proposed regulatory framework by the government is aimed at regulating the activities of these exchanges and protecting the citizens from financial loss as witnessed in the past.
Proposed License for Crypto Assets Services Providers
Crypto stakeholders in the country believe a license for Crypto Assets Services Providers (CASPS) will go a long way to instill confidence in the industry and is really important.
Since the Ban in 2018, crypto entities have been unable to open bank accounts and have relied on global payment platforms like Paypal and Payoneer.
Crypto trading also went underground giving room to the rise of various pyramid schemes and bad actors preying on crypto traders and enthusiasts in the country.
Crypto users in the country generally believe that a license for CASPS will combat fraudulent middlemen and their schemes putting a stop to the rising crypto scams in the country.