Zimbabwe Proposes Inclusion of VASPs in Its Securities Law — Move Applauded as ‘Step in Right Direction’

0

Get real time updates directly on you device, subscribe now.

Loading...

Zimbabwe Proposes Inclusion of VASPs in Its Securities Law — Move Applauded as ‘Step in Right Direction’

The Zimbabwean government recently revealed its intention to widen the definition of securities to include virtual asset service providers (VASPs). According to a document released by the cabinet, the proposed inclusion of VASPs into the category of defined securities will be made possible via the amendment of the Securities and Exchange Act.

The Money Laundering and Terrorist Financing Factor
According to one local report, it is this amended law that will “enable Zimbabwe’s Securities and Exchange Commission (SECZ) to come up with regulations to supervise the VASPs on a risk-based approach.” Similarly, the document states that Zimbabwe’s anti-money laundering law will be amended to enable authorities to deal with the possible abuse of crypto assets by bad actors. The cabinet document explains:

Zimbabwe Proposes Inclusion of VASPs in Its Securities Law — Move Applauded as 'Step in Right Direction'
Zimbabwe Proposes Inclusion of VASPs in Its Securities Law — Move Applauded as ‘Step in Right Direction’

The Money Laundering and Proceeds of Crime Act will be amended to in order to provide for identification and assessment of money laundering and terrorist financing risks that may arise in relation to Virtual assets, acts and activities.

READ ALSO  Tiast Commend Women In Agriculture

In addition, Zimbabwe — which itself is under U.S. financial sanctions — says the same law will be amended to “ensure sanctions are also applicable to VASPs, their directors and senior management.”

Proposal Applauded
Meanwhile, in his reaction to the Zimbabwean government amendment proposal, Prosper Mwedzi, a prominent proponent for crypto regulation, applauds the move which he says is a step in the right direction. However, Mwedzi tells Bitcoin.com News that his only concern with the proposed amendments is the lack of clear timeframes. He said:

The amendment looks like a step in the right direction for the country as it is the first time that digital assets are expressly mentioned under Zimbabwean law. When effective, it will designate SECZ as the official regulatory body to have oversight of crypto for AML purposes and will pave [the] way for policy development in this space. The main question is how long will this process take.

READ ALSO  US Court Jails Cryptocurrency Hedge Fund Founder to 7.5 Years in Prison

Other Zimbabwean commentators have suggested that the proposals could be part of the government’s wider objective of aligning its laws with FATF guidelines. In his July 15 Twitter thread, Mwedzi insists the proposals show that Zimbabwe is moving away from its previous anti-crypto stance.

Send your article and other stuff for publishing to [email protected] Via WHATSAPP

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy
close