The Reserve Bank of Zimbabwe (RBZ) is developing a policy framework to guide the operation of cryptocurrency companies
The Zimbabwe Reserve Bank (RBZ), the country's central bank, is showing intentions to regulate cryptocurrencies in the country as the bank is developing a policy framework to guide the operation of cryptocurrency related companies in Zimbabwe.
According to a report of the local media, Chronicle, on Monday March 16, the deputy director of RBZ of financial markets and national payment systems, the Mr. Josephat Mutepfa, speaking at Bulawayo during an Economic Prosperity Forum on Friday, said the goal of these regulations was to ensure that all cryptocurrency companies go through a critical examination of the regulatory sandbox to meet regulatory requirements.
“We have already started to create a fintech framework because everything in regulation should be well structured. The framework, which is a regulatory sandbox, will assess cryptocurrency companies as to how they will operate. ”
He said that this regulatory sandbox will be an experimentation zone. "Once the sandbox is there, there will be an application criterion, which will also act in the same capacity as the sandbox", said.
“The cryptocurrency market is largely tapped by the young generation and, in most cases, they face challenges of having capital. The challenge is that, in the past, the currency was a prerogative of the central banks, although it has been assumed by the digital currency that also operates within the country's currency, which, therefore, minimizes future loans » .
While most are learning about cryptocurrencies, according to Chronicle, a crypto-based trade consortium, SPURT, you are doing good business with the model. According to SPURT's commercial advisor, Dadiso Brian Maseva, the platform has 50,000 users in the country. He, on RBZ regulation, said central bank regulations will help grow the cryptocurrency market.
Meeting with the central bank will help us grow and attract the public to join the digital currency, which is rapidly taking over the financial sector. Now we are aware that there is a policy, which elaborates more on the fintech guidelines that we must follow ”.
The news appears to be a significant move by the country's central bank after the initial ban on cryptocurrencies. As reported by Crypto Economy, in May 2018, the Reserve Bank of Zimbabwe released a memorandum calling on all local financial institutions in the country to suspend all services to cryptocurrency-related transactions with exchanges and to start liquidating all those accounts citing the need to protect local currency and the risks involved in cryptocurrency trading.