Zambia to Wrap up Testing of Crypto Regulations by June

The recent happenings in the crypto industry have placed a sense of urgency on the need for cryptocurrency regulation in the ecosystem. Zambia’s cryptocurrency regulation test which aims to reshape crypto laws in the country that will simulate the real-world use of cryptocurrency is gradually coming to an end.

In an interview with Reuters, Zambia’s Innovation, Science and Technology minister, Felix Mutati said the main reason behind the crypto regulation test is to enable citizens’ safety and to maintain a balance between innovation with regards to digital payments. Likewise, Felix in the interview noted that before cryptocurrencies can be fully introduced, the country needs digital infrastructure and identities. Meanwhile, the tests will fully come to an end in June.

Additionally, the result from the test will assist the central bank of the country in the formulation of the regulation. Notably, it would include rules which clarify governance arrangements and ensure transparency and also safeguard users’ funds in case of an attack.

Recall that in February, Felix Mutati announced that the Bank of Zambia and the country’s securities regulator are collaborating on digital infrastructure and a policy framework for crypto. The importance of cryptocurrency in Zambia can not be overemphasized, hence the need to put in place a policy framework that will enable the country to achieve an inclusive digital economy. 

Although the country has issued a warning to individuals who want to invest in cryptocurrency as well as related asset classes, stating that they must be aware of the risks involved in it.

Call for Improved Crypto Regulations in Africa

After acknowledging the growth rate and the speed at which the crypto market is thriving in the African region, the international monetary fund called for improved laws in the industry especially those aimed at consumer protection.

At the moment only about one-quarter of countries in Africa have actively regulated cryptocurrencies. While the likes of Zimbabwe and Liberia have refused to officially take a stance on digital assets. Other two-thirds have imposed some kind of restrictions while six countries including Ethiopia have completely banned the use of cryptocurrencies. 

Meanwhile, the Central African Republic has since taken the initiative and has adopted Bitcoin  (BTC) as a legal tender. The nation has also launched a government-backed crypto hub dubbed Project Sango which is the crypto hub initiative aimed at developing the digital asset sector in the nation.