Zimbabwe plans to come up with a crypto regulatory framework 

• Zimbabwe has launched a public consultation on cryptocurrency, seeking feedback from crypto service providers.

• The consultation exercise seeks to recommend a suitable regulatory framework for cryptocurrency and cryptocurrency service providers.

• As part of the national assessment process, a multi-stakeholder committee has been formed to consult with cryptocurrency ecosystem stakeholders.

The invitation to participate extends to all cryptocurrency service providers, whether based in Zimbabwe or outside the country but serving Zimbabwean customers.

The government defines cryptocurrency service providers as individuals or entities that provide blockchain, cryptocurrency, or related services, such as cryptocurrency exchanges, brokers, traders, management providers, developers, miners, validators, and custodial and non-custodial wallet hosts. 

Participation entails completing a questionnaire, which must be submitted by June 26, 2024.

According to the government, this initiative is consistent with global trends and best practices, with the goal of assessing and understanding Zimbabwe’s cryptocurrency and virtual asset landscape.

In addition, the government intends to assess the nature and scope of Zimbabwe’s cryptocurrency ecosystem, as well as the associated risks, such as money laundering, terrorism financing, and other illegal activities.

Zimbabwe announced plans to launch a gold-backed virtual token, the Zimbabwe Gold-Backed Digital Currency, in May 2023, with the intention of using it as legal tender alongside the Zimbabwe dollar and bond notes. This move was made in response to the country’s currency crisis.

By April 2024, Zimbabwe introduced ZiG (Zimbabwe Gold) to replace the Zimbabwean dollar, aiming to establish a credible national currency and boost the economy. 

ZiG is now the country’s official currency, marking Zimbabwe’s sixth attempt at a functional local currency in 15 years. Additionally, Zimbabwe reinstated mobile money services to encourage the adoption of the new currency.

In April 2024, the Kenyan government established a multi-agency technical working group, including the Central Bank of Kenya, to develop a regulatory and monitoring framework for cryptocurrencies known as virtual assets (VAs) and virtual asset service providers (VASPs). This move by the Kenyan government came amid concerns about scams and money laundering.