Zimbabwe joins crypto race, seeks public input on regulations

Zimbabwe is seeking comments on the crypto industry to establish a policy for the sector, media outlets reported on Wednesday.

The government has set up a committee to consult operators in the digital asset space and wants comments by June 26.

Countries worldwide have been looking to understand crypto and regulate the nascent sector. South Africa recently started registering companies, and Nigeria has been establishing its approach to crypto in recent years.

To keep up with the global race, Zimbabwe is exploring comprehensive crypto regulations and is inviting public input to better understand and regulate the sector.

Consultation with stakeholders

The government seeks feedback from both local and international crypto service providers and the general public. Zimbabwe’s latest move signifies its proactive approach towards integrating digital asset governance.

The government has formed a committee that will gather and analyze the feedback to develop crypto regulations by striking a balance between innovation and security.

“In line with global trends and best practices, Zimbabwe is embarking on an exercise to assess and understand the cryptocurrency landscape,” the government said in a statement published in the state-run Herald newspaper Wednesday.

It is “inviting all cryptocurrency service providers,” whether operating inside or outside the country but providing services to people in Zimbabwe, to provide comments.

Deadline and submission details

The deadline for comment submission is June 26. This effort is part of Zimbabwe’s broader initiative to create a regulatory framework that addresses the unique challenges and opportunities presented by cryptocurrencies.

By seeking input from various stakeholders, the government aims to create a well-informed policy that fosters innovation while ensuring consumer protection and financial stability.

Zimbabwe’s position in global crypto activity

According to Chainalysis’s report on global crypto activity, Zimbabwe ranks 103rd, trailing behind Nigeria, which is placed second, and Kenya, which ranks 21st.

Despite its lower ranking, Zimbabwe surpasses over 50 nations in its crypto use in the 2023 ranking. This indicates a growing interest and engagement with cryptocurrencies within the country.

Zimbabwe has also experimented with digital assets to address its economic challenges. The government introduced a gold-backed digital token, called ZiG, as part of its efforts to stabilize the economy.

This initiative reflects Zimbabwe’s willingness to explore innovative solutions in the digital asset space.

Regional context and global trends

Zimbabwe’s efforts to regulate the crypto industry come amid a broader trend in Africa and worldwide. South Africa has begun registering crypto companies to bring more oversight and legitimacy to the sector.

Nigeria has been working on its approach to crypto regulation for several years, reflecting the continent’s increasing engagement with digital currencies.

By seeking public input and developing a comprehensive regulatory framework, Zimbabwe aims to position itself as a proactive player in the global crypto landscape.

This move could help attract investment, foster innovation, and provide a safer environment for digital asset transactions.

As the June 26 deadline approaches, the government expects to receive valuable insights from various stakeholders, which will inform the development of balanced and effective crypto regulations.

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