Zimbabwe Engages Crypto Firms for Input on Virtual Asset Regulation

The Zimbabwean government aims to establish a regulatory framework tailored to the country’s specific needs and conditions.

Currently, the government is developing regulations for Zimbabwe’s cryptocurrency industry and is seeking input from cryptocurrency service providers both domestically and internationally.

As reported by The Zimbabwe Mail, a committee has been formed to collect information from crypto businesses operating in Zimbabwe. The government has set a June 26 deadline for receiving comments.

Zimbabwe Pursues Cryptocurrency Regulation

Nick Mangwana, Zimbabwe's Permanent Secretary for Information and Publicity, emphasized that the initiative seeks a thorough understanding of Zimbabwe’s virtual assets ecosystem. He highlighted the importance of assessing the risks associated with cryptocurrencies, such as potential misuse for money laundering, terrorism financing, and other illicit activities.

“Given the anonymity and decentralization inherent in these digital assets, it is crucial to identify and mitigate any associated risks,” Mangwana stated.

The Zimbabwean government aims to establish a regulatory framework tailored to the country’s specific needs and conditions. This framework aims to strike a balance between promoting innovation and ensuring the security and integrity of Zimbabwe’s financial system.

Zimbabwe's Efforts to Ease Financial Strains with Crypto

The southern African nation is actively embracing the global surge in cryptocurrency adoption, a trend particularly notable in economically challenged countries.

Last year in May, Zimbabwe defied warnings from the International Monetary Fund by introducing Zimbabwe Gold (ZiG), a central bank-issued digital currency backed by gold. This innovative approach proved successful, leading the government to authorize its use as a payment method by October.

Zimbabwe has faced persistent inflation and currency instability for over a decade. Following a period of hyperinflation, the country adopted the U.S. dollar as its official currency in 2009 for stabilization. In 2019, the Zimbabwean dollar was reintroduced in a bid to revive the struggling economy, but this move was followed by another round of significant volatility. Consequently, last year the government reverted to using the U.S. dollar as a measure to manage inflation effectively.