The Zimbabwean government has launched an investigation aimed at formulating regulations for the virtual asset sector.

According to a report from the Zimbabwe Mail on June 12, the government has formed a committee to gather information from cryptocurrency firms operating within the country. This study seeks to gain a comprehensive understanding of Zimbabwe's cryptocurrency industry, including its scale and breadth.

The committee is soliciting input from both local and international crypto companies, with a submission deadline set for June 26.

Nick Mangwana, Zimbabwe’s Permanent Secretary for Information and Publicity, described the study as a thorough initiative. Its primary objective is to provide a detailed overview of the country's crypto landscape and lay the groundwork for future regulatory measures.

Mangwana explained:

“Our first goal is to identify the nature and extent of the cryptocurrency ecosystem in Zimbabwe. This involves mapping out the various participants and activities within the sector to gain a clearer understanding of its size and scope.”

He also underscored the importance of evaluating the risks associated with digital assets, such as money laundering and potential involvement in illicit activities:

“We aim to assess the risks associated with cryptocurrencies being used for purposes like money laundering, terrorism financing, and other illicit activities. Given their anonymous and decentralized nature, it is crucial to identify and mitigate any associated risks.”

The study is anticipated to pave the way for the development of a comprehensive regulatory framework that promotes innovation and bolsters Zimbabwe’s financial system.

These efforts reflect the growing adoption of cryptocurrencies across Africa, where many people use them to circumvent banking and foreign exchange restrictions. Governments in the region are increasingly acknowledging the benefits of digital assets for their citizens, with countries like Kenya also making strides in advancing their crypto industries.