Zimbabwe Creates Committee to Regulate Crypto Industry
Date: 2024-06-13 Author: Oliver Abernathy Categories: IN WORLD
The Zimbabwean authorities have decided to begin developing rules to regulate the crypto industry. In order to create a clear and effective regulatory framework, a committee has been formed to consult with experts and collect data on virtual assets. Bloomberg reports this.
Purpose of Creation of the Committee
The establishment of the committee aims to develop regulatory measures that are in line with global trends and best practices. As part of this initiative, the government has asked cryptocurrency service providers, including those operating outside Zimbabwe, to provide comments and share their experiences.
“In line with global trends and best practices, Zimbabwe is embarking on work to assess and understand the cryptocurrency landscape,” the government said in a statement.
Collection of information
The process of collecting information and consulting with service providers will last until June 26, 2024. This milestone is an important step towards creating an effective and transparent regulatory framework for the crypto industry in Zimbabwe.
Zimbabwe has faced serious economic problems in recent decades. Since 1999, the country has been blocked from international capital markets following a default. As a result, Zimbabwe's public debt has reached $19.2 billion, of which about $13 billion is due to international investors. In April 2024, the country's inflation rate was 57.5%.
Previous Initiatives
In May 2023, the Reserve Bank of Zimbabwe (RZB) issued a gold-backed virtual token. On the first day, RZB spent about 140 kg of gold reserves worth $12 million. However, this initiative was harshly criticized by the International Monetary Fund (IMF), which called such actions a direct threat to the financial stability of the country.
The establishment of a committee to regulate the crypto industry in Zimbabwe is an important step towards stabilizing and modernizing the country's economy. Given the difficult economic conditions and past attempts to introduce cryptocurrency instruments, the new regulation could help create a more resilient and transparent financial system.
