Another African country joined the crypto regulation’s bandwagon, and this time is Botswana, which passed a bill to regulate digital assets trading.
Cryptos and digital tokens will be regulated as part of their efforts to bolster their policies on anti-money laundering (AML).
The report noted that “The Virtual Assets Bill” was approved unanimously by Botswana’s lawmakers. The need to regulate the crypto sphere arose because the industry cannot be left unregulated in the country and could hurt the nation’s efforts in tackling financial crimes.
New Licenses Required
The new rules seek that any company that offers cryptocurrencies services or anything related to digital tokens should obtain a license from the Non-Bank Financial Institutions Regulatory Authority.
Peggy Serame, Botswana Finance Minister, confirmed the news, as the nation has been preparing the ground to increase its financial supervision amid scrutiny that led Botswana to be included in the Financial Action Task Force’s list.
However, the country was later removed amid the increased rulings on combating money laundering.
That said, the bill should go through the presidential signature to be formalized and approved by the authorities.
Tackling Crypto Scams with Regulation
As cryptocurrencies continue to gain wider adoption, the risks have also increased as many people fall prey to cryptocurrency scams; regulators are looking for ways to protect people against this risk in Africa.
Thus, the Financial Sector Conduct Authority (FSCA) in South Africa is planning a regulatory framework to protect more members of society from the hazards of crypto investments.
As FXEmpire reported early in January, the framework will mostly regulate crypto trading. However, the new rules were not formulated alone by the FSCA as they worked with other regulators such as the Financial Surveillance Board and the Prudential Authority.
The country’s need to regulate its crypto trading laws has become more urgent following two major crypto scams that led to the disappearance of billions of dollars in investment, both happening within the country.-yahoofinance
