Botswana central bank flags 'minimal’ crypto risks but urges regulation
Botswana's central bank has identified minimal risks associated with cryptocurrency in the country's undeveloped local crypto market, while also emphasizing the importance of regulatory frameworks to mitigate potential future risks. In its Financial Stability Report, the bank noted that the interconnectedness of crypto with the broader financial system could lead to systemic risks, although current threats remain limited. Regulatory concerns include ongoing misconduct and money laundering, which the bank labeled as one of the top national security risks. It underscored that the evolution of digital payment systems could facilitate illicit financial activities by promoting transaction anonymity. To combat these issues, the Bank of Botswana has urged the need for strong regulations, particularly for virtual asset service providers, and proposed enhanced collaboration with law enforcement to monitor and prevent illegal operations.
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