Zambia’s minister of innovation, science, and technology, Felix Mutati, revealed in an interview that its crypto regulations testing is expected to conclude by June 2023. 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 adoption of virtual assets while protecting intending and existing investors.
Mutati Sees Zambia’s Crypto Regulation Tests Wrapping Up In June
Mutati highlighted 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 at addressing the risks of digital currencies.
Mutati also cited that the tests, which began on February 19, 2023, will also balance the areas of innovation and safety in the nation.
The fact that the government embraces this development shows a collaboration between Zambia’s SEC and the central bank. This will also guarantee that the move complies with the central bank’s policies on cryptocurrencies.
Further, Mutati stated that Zambia had been gradually warming 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, particularly in cross-border payments and financial inclusion.
However, he highlighted that digital infrastructures and identities must already be functional before introducing digital assets in Zambia.
This development comes when Zambia is dealing with a delayed debt-restructuring process. According to Mutati, the country owes a larger portion of this debt to creditors from China.
Another report also revealed Felix Nkulukusa’s take on the country’s debt. He noted that if the debt restructuring was delayed longer, the nation could lose all the gains achieved from its macroeconomic reforms. But despite this fact, Zambia has remained relentless regarding its investments.
Other Countries Embrace Digital Asset Regulation Testing
The United States has also been active in cryptocurrency regulation testing, particularly in 2022. The development at the time allowed crypto market regulators, including the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), to monitor the activities of digital assets in the country.
On the other hand, Japan is one of the most active countries in cryptocurrency regulation testing. The country’s Financial Services Agency (FSA) has been conducting tests on digital asset exchanges to ensure that they comply with regulations related to AML and other areas.
Meanwhile, concluding the testing phase and establishing a regulatory framework in Zambia will be a significant milestone for the nation’s crypto industry. It will also provide more clarity and certainty for investors and businesses operating in the sector.
Featured image from Wikipedia and chart from Tradingview