By Derrick Silimina

The Bank of Zambia in collaboration with other regulators and key stakeholders, has embarked on the development and implementation of a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs) operating in the country.

In a statement, the Central Bank said its Strategic Plan for 2024-2027 acknowledges the potential benefits of virtual asset technologies, such as reduced transaction costs, expedited transfer of value, and the resilience of a decentralised system against a single point of failure.

“As part of this process, the Bank of Zambia hereby requests all entities and individuals providing virtual/crypto asset services within Zambia to register with the Bank by 27 March 2026,” said BoZ Assistant Director – Communications Besnat Mwanza.

Mwanza has however clarified that these technologies also pose risks to the financial sector, including price volatility, lack of visibility of service providers and participants as well as the risk of money laundering, terrorist financing and proliferation financing.

She noted that this registration applies to both resident and non-resident entities/individuals that offer virtual asset services to individuals and businesses within Zambia, regardless of their physical presence.

“The aim of the regulatory framework being developed is to mitigate these risks in order to maintain financial system stability, promote innovation and safeguard consumers.”