• Zambia is in the process of testing digital currencies like bitcoin in order to implement solid crypto regulation.
• This comes after the fall of crypto exchange FTX due to an alleged liquidity crunch and its founder Sam Bankman-Fried being arrested for stealing user funds.
• The Innovation, Science and Technology Minister of Zambia has commented that their main goal is to strike a balance between innovation and citizens’ safety.
Bitcoin Tests Almost Complete in Zambia
Zambia is almost finished with its tests in regards to digital currencies such as bitcoin. The nation is planning to use the results of these tests as a means of doling out solid crypto regulation once and for all. This news comes after the collapse of cryptocurrency exchange FTX in November 2020 which has resulted in calls for better regulations within the space.
Background on Cryptocurrency Exchange FTX
Cryptocurrency exchange FTX was founded by Sam Bankman-Fried who rose to fame back in 2019, with his company becoming one of the top five trading platforms in just three years. However, it quickly fell apart due to an alleged liquidity crunch following a failed purchase agreement with Binance. After leaving his post, it was later revealed that he had allegedly stolen user funds to purchase luxury real estate and pay off loans from other companies – leading him to be arrested at his home in Northern California while awaiting trial.
Zambia’s Goals With Crypto Regulation
Innovation, Science and Technology Minister Felix Mutati has commented on Zambia’s goals when it comes to implementing crypto regulation stating that they are aiming „to strike a balance between innovation in terms of digital payments… against citizens‘ safety“. He also mentioned how many residents have been increasingly interested investing into cryptocurrencies lately.
Africa as a Crypto Haven?
Africa has long been considered as an ideal haven for cryptocurrencies given its high levels of vulnerability towards corruption and weak financial operations; thus making it more prone towards scams or fraudulent activities than other parts of the world. This means there needs to be proper regulations put into place if people are going to trust using cryptocurrencies – something which Zambia looks set on doing soon enough!
It appears that Zambia is close on implementing new laws surrounding cryptocurrencies which will hopefully help protect users from scams or fraudulent activities – something which Africa desperately needs given its situation right now! We’ll have wait until official statements come out regarding this matter but it looks like things are definitely progressing positively for once!