Zimbabwe is set to introduce its first cryptocurrency regulations, marking a significant shift from its previous ban on crypto transactions by banks in 2018.
The government’s National R4isk Assessment Coordination Committee (NRACC) began consultations with crypto stakeholders in May 2024 to draft a regulatory framework, with the discussions concluding in June.
This new regulation is expected to bring legitimacy to the country’s growing crypto industry, potentially allowing the issuance of licenses for crypto exchanges.
Sources close to the matter revealed that the government has encouraged industry players to form lobby groups, creating a channel for ongoing dialogue with regulators.
“Direct communication with regulators makes it easier to build scalable products within the law instead of bypassing regulations that don’t exist,” said Vusa Chimanikire, founder of the fintech startup Entry.
Zimbabwe’s currency volatility has pushed many citizens to rely on crypto exchanges like Binance, Coinbase, and local platform Golix.
By implementing a regulatory framework, the government hopes to address the fallout from unregulated exchanges prior to the 2018 ban, which caused significant financial losses for consumers.
Crypto industry leaders are pushing for the recognition of cryptocurrency as a legitimate financial asset, a necessary step for issuing licenses to crypto service providers.
Since the 2018 ban, many crypto businesses have struggled to open bank accounts and instead depend on international payment platforms such as PayPal and Payoneer to handle their funds.
“If a business can’t open a bank account, it’s essentially nonexistent,” said the founder of a Telegram-based crypto trading platform.
Without regulations, the crypto market in Zimbabwe has largely moved underground, fuelling speculative trading and increasing the risk of scams.
In one notable case, prominent ophthalmologist Dr. Solomon Guramatunhu lost over $100,000 in a crypto scam in May 2024, highlighting the need for stronger oversight.
“The Golix scandal and other scams have tainted the reputation of crypto in Zimbabwe,” said an anonymous industry insider. “A regulatory framework could help restore trust and attract more users to the market.”
For crypto users, government licensing could provide a safeguard against fraudulent actors and improve confidence in the market.
Valentine Muhampa, a market researcher, believes crypto could enhance competition in Zimbabwe’s peer-to-peer transaction space, which is currently dominated by mobile money and cash transfers.
As the nation moves closer to finalising its crypto regulations, stakeholders remain hopeful that the new framework will transform what has been a largely unregulated and volatile market.
Until then, the industry watches closely for the next steps in this pivotal shift.
