Zambia has recently joined the list of African countries that have introduced regulations on cryptocurrency.
This article will provide an overview of Zambia’s cryptocurrency regulations, including its legal status, tax treatment, and other important aspects.
Legal Status of Cryptocurrency
In Zambia, cryptocurrency is not recognized as a legal tender. The Bank of Zambia has warned the public against using cryptocurrencies as the government does not regulate them.
However, the bank has stated that it is open to exploring the potential of blockchain technology for financial inclusion.
Zambia’s tax authorities have yet to issue any specific guidance on the tax treatment of cryptocurrency. However, since cryptocurrency is not recognized as legal tender, it is not subject to value-added tax (VAT).
Anti-Money Laundering (AML) and Know Your Customer (KYC) Regulations
Numerous nations have implemented Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations in various industries, including cryptocurrency.
The Securities and Exchange Commission of Zambia (SEC) regulates cryptocurrency in the country.
The SEC has warned the public against investing in unregulated cryptocurrency schemes and has stated that it will take action against companies that violate the country’s securities laws.
Zambia’s cryptocurrency regulations are still in their early stages and are subject to change. While cryptocurrency is not recognized as legal tender and is not subject to VAT, exchanges and other service providers must comply with AML and KYC regulations.
In addition, the SEC is responsible for regulating cryptocurrency in the country and has warned against investing in unregulated schemes.
Original article: https://freemanlaw.com/cryptocurrency/zambia