Zimbabwe advises crypto companies on virtual asset regulatory needs.
The Zimbabwean government is currently developing regulations for the country's cryptocurrency industry and is seeking input from cryptocurrency service providers both in Zimbabwe and internationally.
According to a report in Zimbabwe Mail, the government has set up a committee to collect information from crypto businesses operating in Zimbabwe. It has set a June 26 deadline for comments.
Zimbabwe aims to regulate crypto.
According to Information and Publicity Permanent Secretary Nick Mangwana, the initiative aims to gain a comprehensive understanding of Zimbabwe's virtual assets ecosystem.
Mangwana said they aim to assess the risks cryptocurrencies pose to “money laundering, terrorist financing and other illegal activities”.
“Given the anonymity and decentralization of these digital assets, it is important to identify and mitigate any associated risks,” Manguana added.
The Zimbabwean government hopes to create a regulatory structure tailored to the country's unique needs and circumstances. This framework focuses on maintaining a balance between fostering innovation and ensuring the safety and integrity of the country's financial system.
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Zimbabwe tries to reduce financial crisis by using crypto.
The southern African country is scrambling to keep up with the growing trend of cryptocurrency adoption, especially in countries with financial difficulties.
Despite warnings from the International Monetary Fund last year, Zimbabwe introduced a central bank-backed digital currency called Zimbabwe Gold (ZIG).
The gold-backed digital currency has been so successful that the government announced in October that it could now be used as a means of payment.
Zimbabwe has been struggling with inflation and currency fluctuations for over 10 years. Following high inflation, the country switched to the US dollar as its official currency in 2009.
The government re-introduced the Zimbabwe dollar in 2019 to boost the flagging economy. However, another cycle of high volatility followed. The administration opted to use the US dollar last year in an effort to control inflation.
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