The reserve bank of Zimbabwe is interested in regulating digital currencies and has already begun drafting a policy framework.
This move comes just weeks after the highest court in India lifted restrictions that had been put in place to prevent financial institutions from dealing with crypto. Zimbabwe now seems ready to open up doors to crypto regulation with a warning against deceitful actions while trading. The warning is informed by past malicious actions that have led to calls for more regulation in the industry.
The Southern African country has seen a recent surge in Bitcoin as well as fintech growth in payments, insurance and trading. The regulations set to take effect will ensure that crypto companies in the country are well vetted.
Creation of a Regulatory Sandbox
RBZ deputy director in financial markets and payment systems Mr. Joseph Mutepfa spoke at a Sound Prosperity Economic Forum in Bulawayo where he said;
“We have already started to come up with a fintech framework because in regulation everything should be well structured. The framework, which is a regulatory sandbox, will be assessing the crypto-currency companies as to how they are going to operate.”
Helping Fintech Grow
He explained that the sandbox would be an experimenting zone that would involve an application criterion. Getting into the sandbox will require the company to exist as a legitimate product or guided in forming a partnership with a bank, mobile money platform, or will need to be licensed.
Mutepfa went on to say;
“The crypto-currency market is largely tapped by the young generation and in most cases, they are facing challenges of having capital. The challenge is that in the past the currency was a prerogative of central banks although it has been taken over by the digital currency who also operate within the currency of the country, which, therefore, minimises loans coming forward.”
He added that the government on the hand had to deal with interpreting the new monetary policy into all of the country’s official languages. These developments are positive according to Brian Maseva, a business advisor at local crypto-based consortium SPURT. Maseva said;
“Meeting with the central bank will help us grow and attract the public to join the digital currency, which is fast taking over the financial sector. We are now aware that there is a policy, which elaborates more on fintech guidelines that we need to follow.”