The government will present the draft law on virtual assets - regulation

The Bototsuan government will present a “virtual asset bill” to the country's parliament, a step that could lead to it becoming one of the first countries in Africa that has the law on regulating cryptocurrencies.

Prevention of the spread of risks related to cryptos

A government draft of Botswana, which suggests regulating new and developing companies with virtual assets and equipping a regulatory authority with its functions and powers, should now be presented to the state's legislators, as can be seen from a recently published official gazette.

The planned presentation of the Virtual Asset Bill together with other draft laws such as the Financial Intelligence Bill comes a little more than two months after the central bank of the state warned residents who are involved in the trade in cryptocurrencies that Botswana has no regulatory framework to regulate this trade.

In the draft, which was published on December 23 in the extraordinary government sheet, the authorities of Botswana not only suggest that they try to recognize crypto trading, but also plan to include "provisions for administration, containing and preventing money laundering and terrorist financing" in the draft. The draft also aims to prevent the distribution risks that are associated with virtual assets and newly created business practices and technologies.

in relation to companies or institutions that issue token, it says in the draft law:

Part III also stipulates that the regulatory authority can give a license if the applicant proves that he has the necessary infrastructure and resources in order to carry out the business activity of a provider of services for virtual assets or an issuer from Initial token Offering, and that the applicant is suitable and that the applicant is suitable. The definition of "Fit and Proper" is intended in Section 11 (2) in accordance with the provisions of the Financial Intelligence Act.

Elsewhere, the draft explains the cases in which the regulatory authority can issue a operating permit. For their part, the approval owners are expected to protect customers' assets. They are also expected to "prevent market abuse and to provide measures to acquire economic participation in your company".

white paper edition mandatory

In terms of application of token offerings, the design says:

"Part IV also provides that a license holder has to issue a white paper that contains complete and accurate information for potential buyers of virtual assets and initial token offers to make well-founded decisions."

In the meantime, some crypto enthusiasts have speculated that Botswana's proposal to change his financial laws with the removal of the country from the countries listed by the Financial Action Task Force (FATF) on the gray list in October 2021 could be associated. The FATF had previously cited defects in the country's money laundering control (AML) and anti-terrorist financing regime (CTF) as reasons for the identification of the country.

at the end of 2021 - almost three years after Greylisting - the FATF announced that he had deleted Botswana from the list after finding some improvements.

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Terence Zimwara

Terence Zimwara is an award -winning journalist, author and writer from Zimbabwe. He wrote in detail about the economic problems of some African countries and how digital currencies Africans can offer an escape route.

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