Zambia Set to Make Crypto History with New Laws & Regulations

• Zambia is in the process of testing digital currencies like bitcoin and is planning to use the results of these tests to create solid crypto regulation.
• The fall of FTX in November 2020 has sparked calls for cryptocurrency regulation, as there were reports that its founder Sam Bankman-Fried stole user funds.
• The Innovation, Science and Technology Minister of Zambia Felix Mutati says his nation is on the verge of implementing rules and laws that will allow safe and controlled crypto transactions for all citizens.

FTX Closure Pushes Calls For Crypto Regulation

In November 2020, cryptocurrency exchange FTX closed down due to an alleged liquidity crunch. It quickly rose to fame in 2019 but fell apart just three years later after a failed purchase agreement with Binance. This closure resulted in wide calls for crypto regulation given reports alleging that its founder Sam Bankman-Fried had stolen user funds to purchase luxury real estate and pay off loans with his other company Alameda Research. He was later arrested and is now awaiting trial at his parents’ home in Northern California.

Zambia Tests Digital Currencies

As a result of this incident, many countries are worried about the cryptocurrency space being more vulnerable than ever before, which has led them to call for regulations that protect customers from similar events occurring again. In response, Zambia is currently testing digital currencies such as Bitcoin as a way to introduce solid crypto regulations when the tests are finished.

Zambian Minister Comments On Crypto Regulation

The Innovation, Science and Technology Minister of Zambia Felix Mutati commented on these tests saying that their goal was “to strike a balance between innovation in terms of digital payments… against citizens’ safety” due to how volatile cryptocurrencies can be. He also noted that many residents have grown interested in investing in cryptocurrencies recently.

Crypto Regulations Aim To Protect Citizens

These regulations are expected to provide adequate protection for citizens when using cryptocurrencies by providing safe and controlled transactions for all users once implemented. As it stands right now, Zambia appears close to introducing these new laws as the country continues its tests on digital currencies like Bitcoin before making a final decision on how best they should be regulated moving forward.

Conclusion

Overall it appears that Zambia is one step closer towards introducing solid crypto regulations following the closure of FTX Exchange late last year – with officials noting that striking a balance between innovation and citizen safety is key when creating regulations around this highly volatile asset class moving forward