Botswana Has No Official Cryptocurrency Regulation Framework

There is no official legislation in Botswana regarding cryptocurrency regulation, according to the Central Bank of Botswana (BOB).

In a press release issued on November 10, it understands that their citizens are involved in crypto trading like everyone else on the planet. BOB has also confirmed receiving and responding to queries from the general public and the media about crypto.

The legality of cryptocurrencies in Botswana and government acceptance are two major topics that have been addressed. There are also worries about the presence of any regulatory structure for the licensing, control, and protection of investors and consumers. 

Central Bank confirms lack of Cryptocurrency regulation

The bank admits that there is no decentralized technologies and cryptocurrency regulation. Therefore, trading in them is like investing in intangible assets that might be dangerous. It highlights the risk of total loss of value in the investment and possible misuse of technology which may result in investor funds being lost. 

Furthermore, it suggests that interested parties conduct due diligence on a company’s registration and legality. Taking into account the business activities, methods to create revenue, and the source of returns.

There is a concern that in many cases, the trade may be linked to pyramid schemes and fraud. This might result in participants being unwittingly involved in unlawful behavior. As a consequence, they could be charged and lose their property as well as money.

Cryptocurrencies do not meet the BOB’s standards as a circulating medium or unit of account. In terms of legal tender status, transferability, exchange and value, cryptocurrency does not have any backing from the government or central bank.

BOB warns citizens against cryptocurrency investments, since there will be no legal remedy if any financial damage is suffered.

Nonetheless, the bank recognizes the potential for widespread and critical influence of the crypto assets sector on its operations and has mandated that banks and the financial sector monitor it. In collaboration, the Bank and the Financial Stability Council are now monitoring developments on an ongoing basis in order to provide the appropriate response as required.