Botswana to Regulate Cryptocurrency Trading (Report)

The government of the African country Botswana has reportedly passed a bill to impose a comprehensive regulatory framework on cryptocurrency trading. The initiative is part of its efforts to tighten anti-money laundering measures.

• According to a recent coverage by Bloomberg, Botswana will become the next nation to implement rules in its cryptocurrency ecosystem.
• The Virtual Assets Bill (as the proposed legislation is called) was approved unanimously today (February 2).
• According to the opposition party, leaving the crypto industry unregulated could make the local financial sector look like a “Wild West.” Rules are necessary because they could reduce money-laundering activities, the lawmakers added.
• The new legislation will require anyone seeking to trade crypto to get a license from the Non-Bank Financial Institutions Regulatory Authority.
• Two months ago, Botswana’s central bank warned that investing in cryptocurrencies is risky and urged for applying supervision in the space.
• The bill still needs to be approved by President Masisi and his administration before becoming official.
• With its regulatory intentions, Botswana joins a number of nations that have also contemplated imposing rules on the industry.
• Earlier this week, the Finance Minister of India – Nirmala Sitharaman – proposed that any income generated from cryptocurrency activity be taxed 30%. In her view, the new policy could clarify transactions involving digital assets and boost investments in the sector.
• Last month, the Russian central bank called upon total ban on everything crypto. Shortly after, though, President Putin and Russia’s Finance Ministry opined that operations with digital assets could benefit the nation, hinting that a China-style prohibition might be out of the question.