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Zambia to Wrap Crypto Regulation Tests by June
Zambia is a landlocked country in southern Africa that has taken a cautious approach towards cryptocurrency. In February, the country’s central bank issued a warning to citizens who wish to deal with cryptocurrencies, stating that they should understand all the risks that come with such payment and investment instruments. However, the country has not completely closed its doors to the world of crypto. In fact, the Zambian government is currently conducting tests that mimic real-life crypto usage to formulate regulations for the sector. The country’s Science and Technology Minister Felix Mutati recently told Reuters that these tests will be wrapped up by June, and the results will assist policymakers in formulating crypto regulations.
The Importance of Striking a Balance between Innovation and Safety
In recent years, cryptocurrencies have gained popularity worldwide due to their decentralized nature, fast transactions, and low fees. However, their volatility and lack of regulation have also caused concerns for governments and regulators. The Zambian government recognizes the potential benefits of digital payments, but at the same time, they want to ensure the safety of its citizens. Mutati explained that their main goal in the area of cryptocurrency is to strike a balance between innovation in terms of digital payments and citizens’ safety.
