Crypto Regulation in Zambia
In February 2018, the Zambia Securities and Exchange Commission issued a notice on cryptocurrencies and other digital products. The Commission urged “any individuals or entities that are currently investing in or intend to invest in cryptocurrencies and related products/assets to exercise restraint and caution as they do so as the products/assets are largely unregulated and not subject to the jurisdiction of the Commission.
Source: Freeman Law
Cryptocurrencies are not legal tender in Zambia, the central bank said earlier this month and “people who want to deal in them should have a clear understanding of all the risks that come with such payment and investment instruments.”
Source: Bloomberg
Cryptocurrencies are not legal tender in Zambia. “This remains the Central Bank’s view to date and to the best of our knowledge there are no incoming regulations on cryptocurrencies in Zambia,” says Lupiya Simusokwe, partner at Corpus Legal Practitioners in Lusaka.
The use of any cryptocurrencies is therefore at the user’s own risk.
“Nonetheless, we believe basic contractual rules remain relevant in determining the parties’ contractual rights and obligations,” he says.
The Central Bank’s research on forming a digital currency is expected to be completed sometime in 2023, says Simusokwe
Source: LEXafrica
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Three individuals are currently out on bond in Zambia after being arrested over charges related to a cryptocurrency investment scheme they had operated.
The three suspects — Hilda Agnes Raubenheimer, Orient Rio Zekko, and Tapiwa Chirwa — are directors of cryptocurrency investment firm Heritage Coin Resources Limited, per the Zambian Watchdog. They allegedly collected more than 28 million Zambian kwacha (approximately US$2.4 million) from prospective investors who were promised that the money would be invested in cryptocurrency.
Source: Sports Yahoo!
The Zambian Securities and Exchange Commission’s (SEC) CEO, Philip Chitalu, has warned the public that cryptocurrency OnyxCoin creator Kwakoo is not licensed to give investment advice or solicit funds, from within and outside the country alike.
The Lusaka Times relayed the Zambian SEC head’s warnings in a report on Aug. 2. According to the report, Kwakoo has been promoting Onyxcoin and soliciting investments from the Zambian public.
Relatedly, CEO Chitalu notes that Securities Act, No. 41 of 2016 dictates that certain activities — such as Kwakoo’s — require proper licensure in Zambia, unless specifically exempted by law. Moreover, Chitalu noted that the SEC is under the impression that Onyxcoin promoters are claiming that the cryptocurrency will increase by over 1,000% by June 2021.
Source: Coin Telegraph
The Bankers Association of Zambia (BAZ) says the introduction of the Central Bank regulatory sandbox will give banks an opportunity to refine new products and services before obtaining regulatory approval and putting them on the market thereby avoiding market credibility risks.
The Bank of Zambia (BoZ) identified the need to develop sandbox regulations for FinTech companies and financial institutions, to foster innovation whilst managing the risks that these technologies may present and set up a sandbox regulatory framework to allow for controlled live testing of innovations under its supervision.
A regulatory sandbox is a framework set up by a regulator that allows financial technology – fintech start up or new product innovations to conduct live experiments in a controlled environment under a regulators supervision. According to BoZ, the Regulatory sandbox is one of the initiatives that falls in its strategic plan and is an enabler of development in terms of financial products and services.
Source: Zambian Business Times
