Zambia’s Minister of Innovation, Science and Technology, Felix Mutati, disclosed in a interview that its testing of crypto regulations is expected to end in June 2023. The Zambian Securities and Exchange Commission and the central bank are conducting these tests to establish a regulatory framework for cryptocurrencies in the country.
The country’s move to regulate digital assets shows its unwavering interest in the industry. This framework is expected to increase the use of virtual assets while protecting intended and existing investors.
Mutati sees Zambia’s crypto regulatory tests ending in June
Mutati emphasized that the tests aim to contribute to the laydown regulations in the crypto space. The testing involves working with various stakeholders in the crypto industry to develop policies and regulations that will promote industry growth while ensuring consumer protection. It also aims to manage the risks of digital currencies.
Mutati too quoted that the tests, which began on February 19, 2023, will also balance the areas of innovation and security in the country.
That the government embraces this development shows a collaboration between Zambia’s SEC and the central bank. This will also ensure that the move complies with the central bank’s cryptocurrency policies.
Furthermore, Mutati stated that Zambia had been gradually warming up to digital assets and blockchain technology. This development indicates that the country’s government is aware of the potential of these technologies to transform the country’s economy, especially in terms of cross-border payments and financial integration.
However, he emphasized that digital infrastructures and identities must already be functional before digital assets are introduced in Zambia.
This development comes as Zambia is dealing with a delayed debt consolidation process. According to Mutati, the country owes a larger part of this debt to creditors from China.
Other Report also revealed Felix Nkulukusa’s views on the country’s debt. He noted that if the debt restructuring was delayed any longer, the nation could lose all the gains made from its macroeconomic reforms. But despite this fact, Zambia has remained relentless in its investment.
Other countries are embracing digital asset testing
United States has also been active in testing cryptocurrency regulation, especially in 2022. Developments at the time allowed crypto market regulators, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), to monitor the activities of digital assets in the country.
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On the other hand, Japanese is one of the most active countries in testing cryptocurrency regulation. The country’s Financial Services Agency (FSA) has conducted tests on digital asset exchanges to ensure they comply with regulations related to AML and other areas.
Meanwhile, ending the testing phase and establishing a regulatory framework in Zambia will be an important milestone for the country’s crypto industry. It will also provide more clarity and certainty for investors and companies operating in the sector.
Featured image from Wikipedia and chart from Tradingview