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The Zimbabwean government is inviting all cryptocurrency service providers, both domestic and international, to participate in shaping its new regulatory framework for the cryptocurrency sector.
Cryptocurrency service providers are defined as individuals or entities offering blockchain, cryptocurrency, or related services, including exchanges, brokers, traders, management providers, developers, miners, validators, and both custodial and non-custodial wallet hosts. Participation in this initiative requires the completion of a questionnaire, which must be submitted by June 26, 2024.
This initiative aligns with global trends and best practices, aiming to understand and assess Zimbabwe’s cryptocurrency and virtual asset landscape. The government seeks to evaluate the nature and scope of the local cryptocurrency ecosystem and identify associated risks such as money laundering, terrorism financing, and other illegal activities.
In response to the country’s ongoing currency crisis, Zimbabwe announced plans in May 2023 to launch a gold-backed virtual token, the Zimbabwe Gold-Backed Digital Currency, intended for use as legal tender alongside the Zimbabwe dollar and bond notes. By April 2024, Zimbabwe introduced ZiG (Zimbabwe Gold) to replace the Zimbabwean dollar, aiming to establish a credible national currency and bolster the economy.
ZiG has since become Zimbabwe’s official currency, marking the country’s sixth attempt at a functional local currency in 15 years. The reinstatement of mobile money services in April 2024 was part of efforts to encourage the adoption of this new currency.
Meanwhile, in April 2024, the Kenyan government formed a multi-agency technical working group, including the Central Bank of Kenya, to develop a regulatory and monitoring framework for cryptocurrencies, known as virtual assets (VAs) and virtual asset service providers (VASPs). This move was driven by concerns over scams and money laundering within the cryptocurrency space.
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