The Zimbabwean government has recently announced its intention to expand the definition of securities in order to include virtual asset services providers (VASPs). A cabinet document reveals that the amendment to the Securities and Exchange Act will allow VASPs to be included in the definition of securities.

The Money Laundering & Terrorist Financing Factor

According to one local report, it is this amended law that will “enable Zimbabwe’s Securities and Exchange Commission (SECZ) to come up with regulations to supervise the VASPs on a risk-based approach.” Similarly, the document states that Zimbabwe’s anti-money laundering law will be amended to enable authorities to deal with the possible abuse of crypto assets by bad actors. The cabinet document states:

The Money Laundering and Proceeds of Crime Act will be amended to in order to provide for identification and assessment of money laundering and terrorist financing risks that may arise in relation to Virtual assets, acts and activities.

In addition, Zimbabwe — which itself is under U.S. financial sanctions — says the same law will be amended to “ensure sanctions are also applicable to VASPs, their directors and senior management.”

Proposal Applauded

Prosper Mwedzi is a prominent advocate for crypto regulation and he applauds the government’s proposal to amend the Zimbabwean constitution. He believes it’s a good step in the right direction. Mwedzi told Bitcoin.com News that he has one concern about the proposed amendments. It lacks clear timelines. He stated:

The amendment looks like a step in the right direction for the country as it is the first time that digital assets are expressly mentioned under Zimbabwean law. It will make SECZ the official regulator for crypto for AML purposes. This will open [the] the way for policy development in this area. It is unclear how long this process will take.

Other Zimbabwean commentators suggested that the government could use the proposals to align its laws with FATF guidelines. In his July 15 Twitter thread, Mwedzi insists the proposals show that Zimbabwe is moving away from its previous anti-crypto stance.

What are your thoughts on Zimbabwe’s proposal to include VASPs in its Securities Act? Let us know what you think about Zimbabwe’s proposal to include VASPs in its Securities Act.

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