The Central Bank of Botswana Addresses the Legality of Crypto Assets in Botswana

The Central Bank of Botswana (Bank of Botswana) has put out a press release acknowledging receipt and subsequent responses to public and media inquiries on the subject of crypto assets, specifically on:

  • The legality of crypto assets in Botswana
  • Acceptance of crypto assets by the authorities
  • The existence of any regulatory framework for the licensing, control, and protection of investors/consumers on crypto assets

In a statement, the Bank of Botswana has put out a 5-point statement to address the growing interest and queries around crypto assets 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 undertake due diligence
  • There is a general concern that the underlying activity may relate to pyramid schemes 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, however, acknowledges the potential for a pervasive and significant effect of the crypto assets business on its functions and mandates, and in general, the broader financial sector of Botswana.

As a result, the bank says there is continuous monitoring of developments by both the Bank and the Financial Stability Council for the necessary response as may be warranted.

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