Zimbabwe's government has reached out to stakeholders for their opinions on regulating cryptocurrency within the nation. An official statement on June 12 mandated that all domestic and international cryptocurrency service providers catering to Zimbabwean customers should provide feedback on their activities.
A dedicated committee has been established to collate and analyze the responses received. This committee will also engage with digital asset service providers in the industry to aid in formulating a comprehensive regulatory framework. Interested parties have a deadline of June 26 to share their views.
Zimbabwe's appeal for input on cryptocurrency regulation reflects a continent-wide trend in Africa, where cryptocurrency adoption and innovation are on the rise. However, regulatory approaches to cryptocurrencies vary notably across different African countries. For example, Nigeria's handling of cryptocurrencies has faced criticism, including the detention of Binance executive Tigran Gambaryan amidst objections from US lawmakers.
Furthermore, Zimbabwe's move to regulate cryptocurrency comes against the backdrop of persistent economic challenges. The country's financial instability led to the introduction of a gold-backed virtual token last year, despite warnings from the International Monetary Fund.
In April 2024, Zimbabwe officially replaced its national currency, the Zimbabwean dollar, with ZiG (Zimbabwe Gold), following multiple collapses of the currency since its reintroduction in 2019. This shift marked the sixth attempt in 15 years to establish a stable local currency and combat high inflation rates.
Moreover, Zimbabwe faces additional hurdles due to its exclusion from international financial markets since 1999 due to defaulting on debts. Efforts are underway to restructure around $19.2 billion in debts owed to creditors, with $13 billion owed to international investors.
