Zambia is Very Close to Implementing New Crypto Laws

Zambia is in the process of testing digital currencies like bitcoin. The country recently commented that these tests are almost finished, and that the nation is planning to use the results of the tests as a means of doling out solid crypto regulation once and for all.

Zambia is Almost Done with Its Crypto Tests

There have been wide calls for crypto regulation over the past six months given the fall of crypto exchange FTX, which occurred in November of last year. Rising to fame in 2019, it took only three years for FTX to be listed as one of the top five digital currency trading platforms in the world, and the man behind it – Sam Bankman-Fried – was lauded as a genius who was set to endure high levels of success in the coming future.

Sadly, the company quickly fell apart due to an alleged liquidity crunch. Following a failed purchase agreement with Binance, the company entered bankruptcy and SBF left his post, though the aftermath was much worse given all the deceitful practices that allegedly went on behind closed doors.

For example, it’s been reported that Bankman-Fried stole user funds to purchase luxury real estate in the Bahamas and to pay off loans with his other company Alameda Research. He was later arrested and is now awaiting trial at his parents’ home in Northern California.

Because of this, many countries are worried that the crypto space is more vulnerable than ever, and they want regulations in place to prevent more closures and customer troubles.

The Innovation, Science and Technology Minister of Zambia, a man named Felix Mutati, says his nation is on the verge of implementing rules and laws that will allow safe and controlled crypto transactions for all citizens. In an interview, he commented:

Our main goal in the area of cryptocurrency is to strike a balance between innovation in terms of digital payments… against citizens’ safety, particularly given that cryptocurrency is very volatile. The central bank is simulating that to see what would happen in the real world. The results will assist us (in) the formulation of the regulation.

He also said that many residents of Zambia have grown very interested in crypto investing as of late. Africa has long been considered the perfect crypto haven given how vulnerable it is to corruption and weak financial operations, things bitcoin was initially built to assist with. Mutati continued by saying:

What we are seeing is increased appetite to invest in Zambia.

Africa Has Long Been Considered a Crypto Powerhouse

Other African nations have made huge headways in recent years when it comes to implementing crypto and digital finance laws.

For instance, in 2022, the Central African Republic (CAR) became the second nation (after El Salvador) to list bitcoin as legal tender, meaning it could be used for purchases.

Tags: crypto, regulation, Zambia