Regulatory Bodies
**Regulatory Warnings:** The Bank of Zambia has repeatedly issued warnings to the public regarding the risks associated ...
Operating Models
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Primary Legislation
| Law / Regulation | Year | Scope |
|---|---|---|
| **Role:** Responsible for regulating the capital markets. If a virtual asset wer | 2026 | **Role:** Responsible for regulating the capital markets. If a virtual asset were to be classified as a security, it wou... |
| **National Payment Systems Act, No. 2 of 2023:** | 2023 | **National Payment Systems Act, No. 2 of 2023:** |
| **Relevance:** This is a crucial piece of legislation that updates the framework | 2026 | **Relevance:** This is a crucial piece of legislation that updates the framework for payment systems in Zambia. While it... |
| **Banking and Financial Services Act, 2017:** | 2017 | **Banking and Financial Services Act, 2017:** |
| **Relevance:** This Act broadly governs the licensing and operations of banks an | 2026 | **Relevance:** This Act broadly governs the licensing and operations of banks and financial institutions. While not spec... |
| **Anti-Money Laundering and Countering the Financing of Terrorism Act, 2010 (as | 2010 | **Anti-Money Laundering and Countering the Financing of Terrorism Act, 2010 (as amended):** |
| **Relevance:** This Act is critical for all financial transactions, including th | 2026 | **Relevance:** This Act is critical for all financial transactions, including those involving virtual assets, even if un... |
Licensing Requirements
**Role:** The primary authority on monetary policy, financial stability, and payment systems. The BoZ has been the most vocal body regarding virtual assets, primarily issuing cautionary statements. They are also leading the charge in developing a potential regulatory framework, including exploring a regulatory sandbox.
**URL:** Bank of Zambia Official Website
**Securities and Exchange Commission (SEC Zambia):**
**Role:** Responsible for regulating the capital markets. If a virtual asset were to be classified as a security, it would fall under the SEC's purview. However, no such classification or specific regulation has been issued for crypto assets by the SEC to date.
**URL:** Securities and Exchange Commission Zambia
**Ministry of Finance and National Planning:**
**Role:** Provides overall policy direction and oversight for financial matters. Involved in the broader strategic discussions regarding digital currencies and virtual assets.
**URL:** Ministry of Finance and National Planning
**National Payment Systems Act, No. 2 of 2023:**
**Relevance:** This is a crucial piece of legislation that updates the framework for payment systems in Zambia. While it doesn't *directly* regulate cryptocurrencies, it provides the Bank of Zambia with the power to license and regulate various payment service providers and instruments. It is highly likely that any future regulation of virtual assets used for payments would either fall under this Act or necessitate amendments to it. It sets the stage for a more robust digital payments ecosystem.
**Reference:** Available on the Parliament of Zambia website or through legal gazettes.
**Example Source (though direct gazette link is harder to find, news confirms its existence):** BoZ on NPSA 2023 (This is a press release about it).
**Banking and Financial Services Act, 2017:**
**Relevance:** This Act broadly governs the licensing and operations of banks and financial institutions. While not specific to crypto, any traditional financial entity dealing with virtual assets would fall under its general provisions.
**Reference:** Available via the National Assembly of Zambia or legal databases.
**Anti-Money Laundering and Countering the Financing of Terrorism Act, 2010 (as amended):**
**Date:** 2010 (with subsequent amendments).
**Relevance:** This Act is critical for all financial transactions, including those involving virtual assets, even if unregulated. Financial institutions and designated non-financial businesses and professions (DNFBPs) are obliged to comply with AML/CFT requirements. Any future crypto regulation would heavily incorporate AML/CFT provisions.
**Reference:** Available via the Financial Intelligence Centre Zambia (FIC) or legal databases. Financial Intelligence Centre Zambia
**Unregulated, but Not Banned:** Crypto trading and the operation of crypto exchanges in Zambia are **not explicitly illegal**, but they are also **not officially regulated or licensed** by any specific framework for virtual assets. This places them in a "grey area."
**Regulatory Warnings:** The Bank of Zambia has repeatedly issued warnings to the public regarding the risks associated with investing in or trading cryptocurrencies. Key points of these warnings include:
**Not Legal Tender:** Cryptocurrencies are not recognized as legal tender in Zambia.
**No Investor Protection:** Since they are unregulated, consumers engaging in crypto transactions do so at their own risk, with no recourse to the BoZ or other regulatory bodies for protection against loss, fraud, or operational failures of exchanges.
**Volatility and Scams:** Highlighting the inherent volatility of crypto assets and the prevalence of scams.
**No Licensed Exchanges:** There are no crypto exchanges or virtual asset service providers (VASPs) specifically licensed or authorized by the BoZ or SEC to operate as such under a virtual asset regulatory framework. Exchanges operating within Zambia are doing so without specific crypto licenses, generally falling under broader business registration laws.
AML/KYC Requirements
**No, not specifically for virtual assets and VASPs.** Zambia's primary AML/CFT legislation, the Anti-Money Laundering and Countering of Terrorism Act, No. 13 of 2010 (and its amendments), as well as associated regulations, does not explicitly extend to the comprehensive regulation of virtual assets or the oversight of VASPs as financial institutions or Designated Non-Financial Businesses and Professions (DNFBPs).
The ESAAMLG's 2019 Mutual Evaluation Report of Zambia highlighted significant gaps in this area. It noted that virtual assets were not adequately covered by the AML/CFT framework, and there was no specific licensing or registration regime for VASPs.
While Zambia is committed to implementing FATF standards, the specific legal and regulatory framework for virtual assets, including the Travel Rule, is still under development or consideration.
**N/A.** Since the specific framework for virtual assets and the Travel Rule has not been adopted, there is no effective date.
**N/A.** Without specific legislation covering VASPs, there are no defined threshold amounts for the Travel Rule. For traditional wire transfers, the threshold amounts for originator and beneficiary information requirements would typically follow existing AML/CFT regulations.
**Currently, none are explicitly covered under a specific regulatory regime for virtual assets.** As per the 2019 ESAAMLG MER, Zambia had not identified or defined VASPs under its AML/CFT laws, nor had it imposed AML/CFT obligations on them. Any entity operating with virtual assets in Zambia currently does so in a largely unregulated environment from an AML/CFT perspective, though the Bank of Zambia has issued warnings regarding the risks associated with cryptocurrencies.
**N/A.** As the Travel Rule has not been formally adopted for VASPs, there are no specific technical implementation requirements.
**N/A for specific Travel Rule non-compliance by VASPs.** Because there is no specific framework defining AML/CFT obligations for VASPs, there are no penalties directly linked to non-compliance with the Travel Rule.
However, if an entity were found to be involved in money laundering or terrorist financing activities using virtual assets, they would be subject to the general penalties under the *Anti-Money Laundering and Countering of Terrorism Act, No. 13 of 2010*, which include severe fines and imprisonment.
**Anti-Money Laundering and Countering of Terrorism Act, No. 13 of 2010:** This is Zambia's principal AML/CFT legislation. While it is the foundational law, it does not specifically address virtual assets or VASPs. Finding an official, up-to-date government-published link can be challenging, but it forms the basis of the Financial Intelligence Centre's (FIC) operations.
**Financial Intelligence Centre (FIC) Zambia:** The FIC is Zambia's financial intelligence unit and the primary body for AML/CFT oversight.
**Bank of Zambia (BoZ):** The central bank has issued advisories warning the public about the risks associated with cryptocurrencies due to their unregulated nature. This indicates a cautious approach rather than active regulation.
**Website:** https://www.boz.zm/ (Look for press releases or circulars on cryptocurrencies in their publications section).
**Access Report:** Go to the ESAAMLG website, navigate to "Documents" -> "Reports" -> "Mutual Evaluation Reports" -> "Zambia."
Travel Rule
Travel rule data collection in progress.
Tax Reporting
**Zambia's CGT Context:** Zambia abolished standalone Capital Gains Tax in 1999. Instead, gains arising from the disposal of **specified assets** are subject to tax under the Income Tax Act. These specified assets primarily include:
**Application to Cryptocurrency:** Cryptocurrency is **not explicitly listed** as one of the specified assets subject to capital gains tax under the Income Tax Act.
**Implication for Investors:** For individuals holding cryptocurrency as a long-term investment, the direct application of a "capital gains tax" in the traditional sense is not straightforward under current Zambian law, as it's not a specified asset.
**Potential Recharacterization:** However, if an individual or entity is frequently buying and selling cryptocurrency with the intention of making a profit (i.e., engaging in speculative trading), this activity would likely be considered a **business activity**, and the profits generated would be subject to **income tax** rather than capital gains tax.
**Therefore, there isn't a specific "capital gains tax rate" for cryptocurrency in Zambia. Any gains from trading or business activities would be taxed at the applicable income tax rates.**
**Trading:** Profits from buying and selling cryptocurrencies frequently with the intention of making a gain.
**Mining:** Income derived from successful cryptocurrency mining operations (e.g., the value of newly minted coins).
**Staking/Lending Rewards:** Income received from staking cryptocurrencies or lending them for interest.
**Airdrops/Forks:** The value of cryptocurrencies received through airdrops or hard forks, if they constitute a gain or income.
**Receiving Crypto as Payment:** If an individual or business receives cryptocurrency as payment for goods or services, its ZMW equivalent value at the time of receipt is considered taxable income.
**Salaries/Wages:** If an employer pays employees in cryptocurrency, the ZMW equivalent value of the crypto at the time of payment is treated as taxable employment income subject to PAYE (Pay As You Earn).
Income tax rates for individuals are progressive. For the 2024 tax year, the brackets are typically:
Companies earning profits from cryptocurrency activities would be subject to the standard corporate income tax rate, which is generally **30%**.
Specific sectors (e.g., manufacturing, certain service industries) may have different rates or incentives.
Banks and financial institutions often have a higher rate (e.g., 35%).
Zambia's equivalent of GST is Value Added Tax (VAT), levied at a standard rate of **16%**.
**Application to Cryptocurrency:** Most tax jurisdictions globally (including Zambia by analogy to financial services) tend to treat pure cryptocurrency transactions (e.g., buying, selling, or exchanging one crypto for another) as **exempt from VAT**, similar to the treatment of traditional currency or financial instruments.
This means the mere act of buying or selling crypto, or exchanging it for fiat currency, would not typically attract VAT.
**VAT on Services Related to Crypto:** However, services *facilitating* crypto transactions might be subject to VAT. For example:
**Exchange Fees:** Fees charged by cryptocurrency exchanges for facilitating trades or withdrawals could be subject to 16% VAT, as these are considered services provided by the exchange.
**Consultancy/Advisory Services:** Professional advice related to cryptocurrency investments or technology could be subject to VAT.
**Mining "as a Service":** If a company provides crypto mining services to others for a fee, that fee might be subject to VAT.
Individuals generating income or profits from cryptocurrency activities (e.g., trading, mining, staking) are required to declare this income in their **income tax returns (Form PIT 1)**.
They must calculate their taxable income/gains and pay the appropriate income tax.
Proper record-keeping (dates of transactions, costs, selling prices, ZMW equivalent values at time of transaction) is crucial for accurate calculation.
Companies involved in cryptocurrency activities must include all income, expenses, and profits/losses related to crypto in their financial statements.
These activities and their financial impact must be accurately reflected in their **corporate income tax returns (Form CIT 1)**.
Businesses registered for VAT that provide VAT-able services related to crypto must account for and remit VAT accordingly.
Maintaining comprehensive and verifiable records is paramount for audit purposes.
As of the current date, **Zambia does not have any specific, dedicated tax legislation for cryptocurrency or virtual assets.**
The tax treatment is derived from the interpretation and application of existing tax laws by the ZRA.
The Bank of Zambia (BoZ) has consistently issued advisories, such as the one in September 2021, warning the public about the risks associated with trading, investing, or transacting in cryptocurrencies. These advisories focus on consumer protection, financial stability, and anti-money laundering concerns, rather than tax specifics.
**Zambia Revenue Authority (ZRA) Official Website:**
This is the primary source for all tax-related information in Zambia. While there isn't a dedicated page for crypto, general tax acts and guidance are found here.
For their stance on virtual assets and related advisories.
This is the foundational legislation governing income tax and the treatment of certain gains. While an online, easily linkable official government gazette version can be hard to find, the ZRA website often provides summaries or references.
*A direct URL to a specific section of the Income Tax Act covering crypto is not possible as it doesn't exist.*
This governs VAT. Similar to the Income Tax Act, a direct online official link to a specific section on crypto is not available.
**Evolving Landscape:** The regulatory and tax landscape for cryptocurrencies is rapidly evolving globally. Zambia's position could change as the technology matures and international standards develop.
**Record Keeping:** Maintaining meticulous records of all cryptocurrency transactions (purchase dates, cost basis in ZMW, sale dates, selling price in ZMW, transaction fees, and any other relevant details) is critical for accurate tax calculation and compliance.
**Professional Advice:** Given the absence of specific legislation and the complexities involved, it is highly recommended to seek professional tax advice from a qualified Zambian tax consultant or attorney regarding your specific cryptocurrency activities.
Custody Requirements
**Currently, there are no specific licenses for crypto asset custodians in Zambia.** Financial institutions dealing with traditional securities or funds require licensing from the Bank of Zambia or the Securities and Exchange Commission, but these licenses do not extend to, nor are there separate licenses for, digital asset custody.
The BoZ has historically advised financial institutions against dealing in crypto assets due to the lack of regulation and associated risks.
**Regulatory Reference (General Financial Sector Oversight):**
**Bank of Zambia Act, 1996:** Governs the operations of the central bank.
**Banking and Financial Services Act, 2017:** Regulates banks and financial institutions.
**Securities Act, 2016:** Governs the securities market and its participants.
Securities and Exchange Commission Zambia: https://sec.gov.zm/
**There are no explicit rules for the segregation of client crypto assets.** In traditional finance, robust rules exist requiring licensed entities to segregate client funds and assets from their own operational funds. However, these do not specifically apply to crypto assets due to the absence of specific crypto legislation.
If a Zambian entity were to offer crypto custody, they would likely be subject to general trust law principles and potentially anti-money laundering (AML) requirements, but no specific crypto-focused segregation mandates exist.
**No specific insurance or bonding requirements for crypto custodians exist in Zambia.** Traditional financial service providers are subject to various capital adequacy and, in some cases, professional indemnity insurance requirements. Without a regulatory framework for crypto custody, these do not apply to virtual asset service providers (VASPs) for their crypto activities.
**There are no mandates or specific requirements for cold storage (offline storage) of crypto assets.** While cold storage is a widely recognized security best practice in the crypto industry, Zambian regulation does not address such operational or technical requirements for custodians.
**There is no legal or regulatory definition of a "qualified custodian" specific to digital assets in Zambia.** The concept of a "qualified custodian" is generally found in jurisdictions with developed securities regulations for investment advisers (e.g., in the US, under the Investment Advisers Act). Since digital assets are not explicitly defined as securities requiring such custody in Zambia, the term doesn't apply within the existing framework for crypto.
**Bank of Zambia's Fintech Regulatory Sandbox and Virtual Assets Framework:** In recent years, the Bank of Zambia has indicated its intention to develop a comprehensive framework for virtual assets. This includes exploring the possibility of a regulatory sandbox for fintech innovations, which could eventually lead to specific regulations for digital asset service providers, including custodians.
**Engagement with Industry:** The BoZ has engaged with various stakeholders to understand the digital asset landscape and formulate appropriate policies. The development of such a framework would likely include provisions for licensing, operational requirements, security, and potentially custody-specific rules, aligning with international standards (e.g., FATF recommendations).
**Government's Stance:** The Zambian government, through various ministries, has acknowledged the growth of digital assets and the need for a regulatory approach that balances innovation with financial stability and consumer protection.
**Bank of Zambia Official Statements/Reports:** While a specific *law* isn't out yet, the BoZ has publicly stated its intentions to regulate virtual assets. These statements often appear in their annual reports, monetary policy statements, or press releases.
*Example (General reference to BoZ's forward-looking approach to fintech):* You would typically look for the latest BoZ Annual Reports or specific press releases on "Fintech," "Digital Assets," or "Virtual Assets." As of my last update, direct URLs to proposed legislation are not yet public, but the BoZ's commitment to developing a framework is known. A search on the BoZ website for "virtual assets" or "fintech" might yield relevant policy papers or pronouncements.
Stablecoin Regulation
**No Explicit Classification:** The Bank of Zambia has not explicitly classified stablecoins as e-money, payment tokens, or securities under a specific stablecoin regulation.
**Cautious Monitoring:** The BoZ has repeatedly stated it is studying and monitoring the cryptocurrency space, including stablecoins, to understand their potential risks and benefits.
**Potential Interpretation under Existing Laws:**
**E-money/Payment Token:** If a stablecoin were to function as a store of value and a medium of exchange, facilitating payments, it *could potentially* be brought under the purview of the **National Payment Systems Act, 2007** (and its amendments). This Act regulates payment systems and payment service providers. The BoZ has the authority to issue directives concerning payment instruments.
**Security:** If a stablecoin offered investment-like features, or if its backing involved assets that could be considered securities, it *might* potentially fall under the regulation of the **Securities Act, 2016**, administered by the Securities and Exchange Commission (SEC) Zambia. However, this is less likely for typical stablecoins designed for payments.
**Banking/Financial Service:** If a stablecoin issuer were to engage in deposit-taking or other traditional banking services, they would fall under the **Banking and Financial Services Act, 2017**.
**Anti-Money Laundering (AML) / Counter-Financing of Terrorism (CFT):** Regardless of classification, any entity dealing with stablecoins would be subject to Zambia's AML/CFT framework, primarily governed by the **Financial Intelligence Centre Act, No. 4 of 2020**.
**Bank of Zambia (BoZ) Act, 1996 (as amended):** This act establishes the BoZ's mandate as the central bank, including currency issuance and monetary policy.
Link (General BoZ Legislation Page):
**National Payment Systems Act, No. 1 of 2007:** Regulates payment systems and services in Zambia.
**Banking and Financial Services Act, No. 7 of 2017:** Governs the licensing and regulation of banking and financial institutions.
**Securities Act, No. 41 of 2016:** Regulates the capital markets and securities.
Link (SEC Zambia Legislation Page - may require navigation):
**Financial Intelligence Centre Act, No. 4 of 2020:** Establishes the FIC and the framework for combating financial crime.
Link (Zambian Legislation Portal - often available via Ministry of Justice): (Search for "Financial Intelligence Centre Act")
**No Specific Stablecoin Reserve Requirements:** As there is no dedicated stablecoin regulation, there are no specific reserve requirements mandated for stablecoin issuers in Zambia.
**General Prudence:** If a stablecoin issuer were eventually licensed under existing financial laws (e.g., as a payment service provider), the BoZ would likely impose conditions ensuring solvency and liquidity, which could implicitly act like reserve requirements depending on the nature of the stablecoin and its operations.
**No Specific Stablecoin Issuer Licensing:** There is no dedicated licensing regime specifically for stablecoin issuers.
**Potential for Existing Licensing:** If an entity issuing a stablecoin were deemed to be operating as a Payment Service Provider (PSP) under the National Payment Systems Act or engaging in banking/financial services under the Banking and Financial Services Act, they would be required to obtain the relevant licenses from the Bank of Zambia.
**No Specific Stablecoin Redemption Rights Legislation:** Without a dedicated framework, there are no legally enshrined redemption rights specifically for stablecoin holders in Zambia.
**Contractual Basis:** Redemption rights would currently be purely contractual, based on the terms and conditions set by the stablecoin issuer. The enforceability of these rights would depend on general contract law.
**No Specific Rules:** Given the absence of a general stablecoin framework, there are no specific rules or prohibitions regarding algorithmic stablecoins.
**BoZ's General Stance:** The Bank of Zambia is generally cautious about instruments with high volatility and opacity. Algorithmic stablecoins, known for their inherent risks and often complex mechanisms, would likely face significant scrutiny if they were to gain traction in Zambia, and could be subject to more restrictive measures or outright prohibitions in any future regulatory framework.
**Active CBDC Exploration:** Zambia is actively exploring the feasibility of introducing a Central Bank Digital Currency (CBDC). The Bank of Zambia has been conducting a feasibility assessment.
In 2022, the BoZ indicated it had completed a "Digital Currency Feasibility Assessment Report."
In January 2023, BoZ Governor Dr. Denny Kalyalya affirmed that Zambia was still assessing the impact of a CBDC, taking a cautious approach while monitoring developments in other countries.
**Potential Future Impact on Private Stablecoins:** If Zambia were to introduce a CBDC, it could significantly impact the regulatory landscape for private stablecoins.
**Reduced Need:** A successful CBDC might reduce the perceived need or market for private stablecoins.
**Competitive Pressure:** A CBDC could provide a safer, more stable, and regulated alternative, putting pressure on private stablecoins.
**Stricter Regulation:** The introduction of a CBDC might prompt the BoZ to develop clearer and potentially more restrictive regulations for private stablecoins, especially if they are seen as competing with or posing risks to financial stability in the presence of a sovereign digital currency. The BoZ might prioritize its own CBDC and tightly control or even restrict private stablecoin issuance.
**Bank of Zambia Statements on CBDC:** News articles and official BoZ press releases have covered this topic.
Example from Reuters (Jan 2023, quoting BoZ Governor):
Example from Bloomberg (July 2022, on feasibility report): (May require subscription to view full article)
Search "Bank of Zambia CBDC" or "Bank of Zambia digital currency" on the BoZ website or reputable news sources for the latest updates.
Securities Classification
Securities classification data collection in progress.
Sanctions & Restrictions
Sanctions data collection in progress.
Enforcement Actions
**Regulator Name:** Bank of Zambia (BoZ)
**Entity Targeted:** General public and unregulated entities
**Violation Type:** Engaging in unregulated financial activities, potential for fraud, money laundering, and lack of consumer protection. Not recognizing virtual assets as legal tender.
**Penalty Amount:** Not applicable (as these are warnings, not specific fines)
**Date:** Ongoing, with multiple statements issued over the years. A significant recent statement was in **May 2022**.
**Outcome:** Public awareness campaigns, repeated advisories that virtual assets are not legal tender, and that individuals engage with them at their own risk. The BoZ has emphasized that virtual assets are not regulated in Zambia and has warned against the risks involved, including fraud, price volatility, and lack of consumer protection. They have also indicated that they are exploring the possibility of a Central Bank Digital Currency (CBDC).
**Bank of Zambia Statement on Virtual Assets (May 2022):** https://www.boz.zm/media/media_releases/2022/STATEMENT%20ON%20VIRTUAL%20ASSETS.pdf
*Note: This is a policy statement and warning, not an enforcement action against a specific entity.*
**Regulator Name:** Financial Intelligence Centre (FIC) Zambia
**Entity Targeted:** General public, financial institutions (regarding their reporting obligations)
**Violation Type:** Potential for money laundering and terrorist financing using virtual assets.
**Penalty Amount:** Not applicable (as these are general advisories/reports)
**Date:** FIC annual reports consistently highlight emerging trends in financial crime, which often include the use of virtual assets as a medium, though not usually specific enforcement actions against crypto entities themselves.
**Outcome:** Increased awareness among reporting entities and the public about the risks of financial crimes, including those facilitated by virtual assets. FIC focuses on intelligence gathering and dissemination to aid law enforcement.
**FIC Zambia Website (for Annual Reports):** https://www.fic.gov.zm/
*Note: FIC reports cover broader financial crime trends, and while virtual assets may be mentioned as a method, specific regulatory enforcement actions against crypto businesses are not typically the focus of these public reports.*
**Caution and Warnings:** The Bank of Zambia consistently advises against the use of cryptocurrencies due to risks and their unregulated status.
**No Legal Tender Status:** Cryptocurrencies are explicitly not recognized as legal tender in Zambia.
**Lack of a Specific Regulatory Framework:** As of now, there isn't a comprehensive regulatory framework specifically governing cryptocurrency exchanges or services that would allow for detailed enforcement actions akin to those seen in more established crypto jurisdictions.
**Focus on Monitoring:** Regulators are monitoring global developments and exploring potential frameworks, including a CBDC.
**General Fraud vs. Regulatory Enforcement:** While there might be instances of law enforcement (police) dealing with fraud cases where cryptocurrencies were used, these are distinct from regulatory enforcement actions by financial regulators against crypto businesses for operating without a license or violating financial laws.
Research & Articles
Regulatory Forecast
high confidenceLikely stablecoin regulation expected around 2026-05-07
Based on 90 historical regulatory events for Zambia, averaging every 15 days, with increasing regulatory activity.
Recent Updates
**Bank of Zambia's Fintech Regulatory Sandbox and Virtual Assets Framework:** In recent years, the Bank of Zambia has...
**Bank of Zambia's Fintech Regulatory Sandbox and Virtual Assets Framework:** In recent years, the Bank of Zambia has indicated its intention to develop a comprehensive framework for virtual assets. This includes exploring the possibility of a regulatory sandbox for fintech innovations, which could eventually lead to specific regulations for digital asset service providers, including custodians.
**Bank of Zambia Official Statements/Reports:** While a specific *law* isn't out yet, the BoZ has publicly stated its...
**Bank of Zambia Official Statements/Reports:** While a specific *law* isn't out yet, the BoZ has publicly stated its intentions to regulate virtual assets. These statements often appear in their annual reports, monetary policy statements, or press releases.
**Regulator Name:** Bank of Zambia (BoZ)
**Regulator Name:** Bank of Zambia (BoZ)
**Outcome:** Public awareness campaigns, repeated advisories that virtual assets are not legal tender, and that indiv...
**Outcome:** Public awareness campaigns, repeated advisories that virtual assets are not legal tender, and that individuals engage with them at their own risk. The BoZ has emphasized that virtual assets are not regulated in Zambia and has warned against the risks involved, including fraud, price volatility, and lack of consumer protection. They have also indicated that they are exploring the possibility of a Central Bank Digital Currency (CBDC).
**Caution and Warnings:** The Bank of Zambia consistently advises against the use of cryptocurrencies due to risks an...
**Caution and Warnings:** The Bank of Zambia consistently advises against the use of cryptocurrencies due to risks and their unregulated status.
**No Explicit Classification:** The Bank of Zambia has not explicitly classified stablecoins as e-money, payment toke...
**No Explicit Classification:** The Bank of Zambia has not explicitly classified stablecoins as e-money, payment tokens, or securities under a specific stablecoin regulation.
**Bank of Zambia (BoZ) Act, 1996 (as amended):** This act establishes the BoZ's mandate as the central bank, includin...
**Bank of Zambia (BoZ) Act, 1996 (as amended):** This act establishes the BoZ's mandate as the central bank, including currency issuance and monetary policy.
**Banking and Financial Services Act, No. 7 of 2017:** Governs the licensing and regulation of banking and financial ...
**Banking and Financial Services Act, No. 7 of 2017:** Governs the licensing and regulation of banking and financial institutions.
**No Specific Stablecoin Issuer Licensing:** There is no dedicated licensing regime specifically for stablecoin issuers.
**No Specific Stablecoin Issuer Licensing:** There is no dedicated licensing regime specifically for stablecoin issuers.
**Potential for Existing Licensing:** If an entity issuing a stablecoin were deemed to be operating as a Payment Serv...
**Potential for Existing Licensing:** If an entity issuing a stablecoin were deemed to be operating as a Payment Service Provider (PSP) under the National Payment Systems Act or engaging in banking/financial services under the Banking and Financial Services Act, they would be required to obtain the relevant licenses from the Bank of Zambia.
**BoZ's General Stance:** The Bank of Zambia is generally cautious about instruments with high volatility and opacity...
**BoZ's General Stance:** The Bank of Zambia is generally cautious about instruments with high volatility and opacity. Algorithmic stablecoins, known for their inherent risks and often complex mechanisms, would likely face significant scrutiny if they were to gain traction in Zambia, and could be subject to more restrictive measures or outright prohibitions in any future regulatory framework.
**Active CBDC Exploration:** Zambia is actively exploring the feasibility of introducing a Central Bank Digital Curre...
**Active CBDC Exploration:** Zambia is actively exploring the feasibility of introducing a Central Bank Digital Currency (CBDC). The Bank of Zambia has been conducting a feasibility assessment.
**Bank of Zambia Statements on CBDC:** News articles and official BoZ press releases have covered this topic.
**Bank of Zambia Statements on CBDC:** News articles and official BoZ press releases have covered this topic.
**Unregulated, but Not Banned:** Crypto trading and the operation of crypto exchanges in Zambia are **not explicitly ...
**Unregulated, but Not Banned:** Crypto trading and the operation of crypto exchanges in Zambia are **not explicitly illegal**, but they are also **not officially regulated or licensed** by any specific framework for virtual assets. This places them in a "grey area."
**Regulatory Warnings:** The Bank of Zambia has repeatedly issued warnings to the public regarding the risks associat...
**Regulatory Warnings:** The Bank of Zambia has repeatedly issued warnings to the public regarding the risks associated with investing in or trading cryptocurrencies. Key points of these warnings include:
**No Licensed Exchanges:** There are no crypto exchanges or virtual asset service providers (VASPs) specifically lice...
**No Licensed Exchanges:** There are no crypto exchanges or virtual asset service providers (VASPs) specifically licensed or authorized by the BoZ or SEC to operate as such under a virtual asset regulatory framework. Exchanges operating within Zambia are doing so without specific crypto licenses, generally falling under broader business registration laws.
The Bank of Zambia (BoZ) has consistently issued advisories, such as the one in September 2021, warning the public ab...
The Bank of Zambia (BoZ) has consistently issued advisories, such as the one in September 2021, warning the public about the risks associated with trading, investing, or transacting in cryptocurrencies. These advisories focus on consumer protection, financial stability, and anti-money laundering concerns, rather than tax specifics.
**Anti-Money Laundering and Countering of Terrorism Act, No. 13 of 2010:** This is Zambia's principal AML/CFT legisla...
**Anti-Money Laundering and Countering of Terrorism Act, No. 13 of 2010:** This is Zambia's principal AML/CFT legislation. While it is the foundational law, it does not specifically address virtual assets or VASPs. Finding an official, up-to-date government-published link can be challenging, but it forms the basis of the Financial Intelligence Centre's (FIC) operations.
**Bank of Zambia (BoZ):** The central bank has issued advisories warning the public about the risks associated with c...
**Bank of Zambia (BoZ):** The central bank has issued advisories warning the public about the risks associated with cryptocurrencies due to their unregulated nature. This indicates a cautious approach rather than active regulation.
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