The Botswana Central Bank (Bank of Botswana) has issued a press statement recognizing receipt and subsequent responses to public and media inquiries about crypto assets, specifically on: Botswana’s legality of crypto assets, Authorities’ acceptance of crypto assets, Existence of any regulatory structure for the licensing, control, and protection of crypto asset investors and consumers.
The Bank of Botswana has issued a five-point statement in response to the increased interest and questions around crypto asset investments.
The bank makes the following observations:
- There is no specific legal or regulatory framework pertaining to crypto assets such as bitcoin
- It is advisable and prudent that those intending to participate in crypto assets activity to undertake due diligence
- There is general concern that the underlying activity may relate to pyramid scheme and scams
- The reference to crypto assets as currencies is a misnomer because they do not exhibit key fundamentals of money
- There is no recourse to the bank for redress pertaining to fraud, misconduct or financial loss related to crypto assets
The Bank of Botswana, on the other hand, recognizes that the crypto assets business has the potential to have a wide-ranging and significant impact on its operations and mandates, as well as on Botswana’s broader financial system.
As a result, the bank claims that both the Bank and the Financial Stability Council are constantly monitoring developments in order to respond as needed.
