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 a 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.