Zimbabwe is progressing towards the adoption of cryptocurrency by formulating its first set of regulations, reversing the Reserve Bank of Zimbabwe’s 2018 prohibition on banks participating in crypto transactions. This initiative aims to develop future regulations that may include licensing for crypto exchanges, thereby legitimizing the industry and promoting safer operations.
Key figures in the industry have been encouraged to form advocacy groups to communicate directly with regulators, which would help shape laws that facilitate the growth of scalable products within a legal framework. Vusa Chimanikire, founder of the fintech startup Entry, highlighted the importance of direct engagement with regulators in shaping the future of crypto in the country.
Zimbabwe’s complex currency history has driven many citizens to turn to international crypto exchanges like Binance and Coinbase, and local platforms like Golix. These platforms have operated without regulation, leaving users vulnerable to scams and financial losses, which became especially apparent following the 2018 ban. Many crypto businesses struggled to access banking services, turning to alternatives like PayPal and Payoneer, which restricted their operations. One Telegram-based crypto platform founder expressed frustration over these challenges.
The absence of regulation has also led to speculative trading and the rise of crypto pyramid schemes. A recent high-profile case involved Zimbabwean ophthalmologist Dr. Solomon Guramatunhu losing over $100,000 in a crypto scam. Incidents like this have heightened the urgency for a regulatory framework to protect consumers and restore trust in the crypto market.
Licensing of Crypto Asset Service Providers (CASPs) is expected to provide safer transactions and boost competition in Zimbabwe’s peer-to-peer transaction space, currently dominated by mobile money, cash, and bank transfers. Market research analyst Valentine Muhampa noted that these regulations would connect users with verified intermediaries, reducing the risks of fraud.
As Zimbabwe’s crypto community awaits the finalization of these regulations, there is a growing sense of cautious optimism that the industry may soon transition from its unregulated, “Wild West” image to a more secure, regulated market.
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