According to Finance Minister Peggy Serame, Botswana MPs have enacted a measure to regulate the trade of cryptocurrencies and digital tokens.
Following its removal from the Financial Action Task Force (FATF) list of countries with deficiencies in combatting money laundering and terrorist financing in October 2021, the Virtual Assets Bill is likely to assist the country tighten anti-money laundering regulations even more.
The legislation comes barely two months after Botswana’s Central Bank issued a public warning about the dangers of investing in cryptocurrencies due to their lack of regulation.
The Bank of Botswana made the following observations in a statement released in November 2021:
- Bitcoin and other digital assets are not subject to any specific legal or regulatory framework.
- It is recommended and prudent for anyone considering investing in crypto assets to conduct due diligence.
- There is widespread fear that the suspicious activity is linked to pyramid schemes and other types of scams.
- Because crypto assets lack basic money fundamentals, referring to them as currencies is a misconception.
- For remedy in cases of fraud, misconduct, or financial loss with crypto assets, there is no recourse to the bank.
Anyone wishing to provide crypto services will not be required to obtain a license from the Non-Bank Financial Institutions Regulatory Authority under the bill.