• Zambia is close to implementing new crypto laws in order to strike a balance between innovation and citizens‘ safety.
• The country is currently running tests to gather results that will help them formulate the regulations.
• Recently, many inhabitants of Zambia have shown an interest in investing in cryptocurrencies due to the fall of exchanges such as FTX.
Zambia Close To Cryptocurrency Regulation
Zambia is on the verge of introducing cryptocurrency regulation to promote innovation and protect its citizens from volatile digital currencies. The minister for Innovation, Science and Technology, Felix Mutati, has stated that the central bank is currently simulating scenarios to inform their decision-making process.
FTX Exchange Closure Sparks Interest In Cryptocurrencies
The demand for crypto regulation has increased since November 2020 when the crypto exchange FTX closed its doors due to a liquidity crunch. Suspicions arose about its founder Sam Bankman-Fried who was accused of misappropriating user funds for his own personal gain such as purchasing real estate in the Bahamas and paying off loans with another company Alameda Research. He was later arrested and is awaiting trial at his parents’ home in Northern California. This event has sparked further interest among those living in Zambia who see potential profits if they invest in crypto assets.
Striking A Balance Between Innovation And Safety
The goal for cryptocurrency regulation in Zambia aims to create a balance between allowing innovative digital payment solutions whilst still protecting citizens from any risks associated with volatility or fraud. Minister Mutati believes that by monitoring these tests it will provide them with greater insight into how best they can regulate this sector without stifling progress or exposing investors to risk.
Reaching Out To Experienced Crypto Professionals
In addition, Minister Mutati has also expressed his desire for advice from experienced professionals within the world of cryptocurrency so that they can ensure they are up-to-date on current trends and practices throughout this industry before making any decisions regarding legislation or regulation changes.
Cryptocurrency regulation looks set to be introduced into Zambian law soon as authorities seek ways of creating a safe environment for investors whilst still encouraging innovation within this space. With FTX’s closure acting as a reminder of how fragile this sector can be, it’s imperative that steps are taken now to protect citizens from similar events occurring again in the future while still permitting progress within blockchain technology development.