Zimbabwe seeks global input on its crypto regulations
Share link:In this post: Zimbabwe is developing new cryptocurrency regulations and seeking input from local and international crypto service providers. The government aims to understand the virtual assets ecosystem and assess risks like money laundering and terrorism financing. Zimbabwe introduced a new gold-backed currency, ZiG, to stabilize its economy after multiple currency crashes.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made
The Zimbabwean government is developing new regulations for its cryptocurrency industry and is asking for input from crypto service providers both in Zimbabwe and internationally. A committee has been set up to gather information from these businesses, with a deadline of June 26 for comments.
Also Read: Zimbabwe’s New Gold-Backed Currency Blighted by Trust Issues
Nick Mangwana, the Information and Publicity Permanent Secretary, said the goal is to understand the virtual assets ecosystem in Zimbabwe. This includes mapping out the various actors and activities within the space to get a clearer picture of its scope and scale. This is in line with global trends and best practices.
Zimbabwe assesses crypto’s risks and opportunities
Mangwana explained that the government wants to assess the potential risks associated with cryptocurrencies. “Our objective is to evaluate the dangers of misusing cryptocurrencies for money laundering, terrorism financing, and other illicit activities. Given the anonymity and decentralization that characterize these digital assets, it is crucial to identify and mitigate any associated risks,” he said.
This study will also help develop a regulatory framework tailored to Zimbabwe’s needs. Mangwana added:
We intend to recommend an appropriate regulatory framework for cryptocurrency and cryptocurrency service providers. This framework will aim to strike a balance between fostering innovation and ensuring the security and integrity of our financial system.
Since 1999, Zimbabwe has been locked out of international capital markets due to defaulting on its debts. The country is trying to reorganize about $19.2 billion owed to creditors, including $13 billion to international investors. The statistics agency began computing inflation with ZiG as a base in May.
Zimbabwe faces financial turmoil
Last year, Zimbabwe introduced a gold-backed virtual token to end decades of financial chaos. In April, the country launched a new currency called ZiG, short for Zimbabwe Gold. This was the sixth attempt in 15 years to have a functioning local currency. The new currency replaced the Zimbabwean dollar, which had crashed multiple times since reintroduced in 2019, causing inflation to rise.
Also Read: Zimbabwe turns to gold in efforts to permanently ditch US dollar
In a New Year message, President Emmerson Mnangagwa said everything was shaping up for a prosperous Zimbabwe. However, he acknowledged the challenges faced by the economy. “We are in an agro-based economy. We sneeze when the agriculture sector catches a cold. This year there is a drought, which will have a devastating impact on the economy. We will be importing food because of the Russia-Ukraine war, which has driven global food prices up by around 50%,” he said.
Cryptopolitan reporting by Jai Hamid
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Dominance Nears Peak Amid Bearish Divergence
![](https://img.bitgetimg.com/multiLang/image/social/225be8c12831b6325c40d486382b137e1725755405996.jpg)
Top 5 Decentralized Protocols: Unparalleled Innovations in the Crypto Space
![](https://img.bitgetimg.com/multiLang/image/social/5f8d8e8c87ee028496ff318240f8e9dc1725755405787.jpg)
Justin Sun Announces Major Update for Tron (TRX)
Tron (TRX) founder Justin Sun signaled an important change for the altcoin in his statement.
Warren Buffett’s Crypto Gift from Justin Sun Surges 1,000% in Value by 2024
![](https://img.bitgetimg.com/multiLang/image/social/d7215344ad2c6159afe786d833a13f3a1725746405107.jpg)