Botswana has no regulatory framework for crypto - central bank - emerging market

The Bank of Botswana (Bob) has stated that the country has no specific legal or regulatory framework in relation to crypto-assets. However, the bank warns residents who invest in cryptocurrencies that they have no legal process should they suffer financial losses.

reaction of the central bank to public inquiries

in his Statement November, the central bank initially recognizes that the residents, just like their colleagues around the world, are involved in the trade in cryptocurrencies. BOB also confirmed that it received and answered public and media inquiries on this topic.

Next, the explanation shares some of the observations made by the central bank when they observed the developments in increasing trade in crypto-assets.

"There is no specific legal or regulatory framework in relation to or prohibited investments in crypto-assets such as Bitcoin in Botswana. Therefore, trading with bitcoin or similar decentralized technologies, also known as" cryptocurrency ", comparable to investments in other intangible assets with the associated risks, such as. B. complete loss of value or possible misuse of the technologies to the disadvantage of investors, ”explained the BOB press release.

While the BOB insists that there are no legal process for cryptocurrency investors who lose money from fraudulent systems, the bank calls on investors, "the registration and legality of the company as well as the type of business, including the way of generating and the source of income."

cryptocurrency no real currency

The statement by the central bank also indicates that the underlying activity of some companies that work in crypto trade could be related to snowball systems and fraud. Therefore, BOB investors who are working in cryptocurrency trade again warned that they could "participate in criminal activities". From the BOB's point of view, this means that these crypto investors may be "liable for criminal law and/or are subjected to a significant risk of financial and financial losses".

In the meantime, the opinion of the BOB is also known as currencies to classify cryptocurrencies. According to the central bank, this reference to cryptocurrencies is misjudged, since these do not have the most important fundamental and complementary properties of money or currency, such as stable value storage.

cryptocurrencies also fail as an invoice unit or as a widely accepted exchange. It is even more important that cryptocurrencies from the BOB's perspective no support from the state or central bank in relation to the status as a legal means of payment, transferability, exchange or value.

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