Botswana government to submit virtual asset bill to parliament

The government of Botswana will submit a “Virtual Assets Bill” to the country’s parliament, a move that could make Botswana one of the first countries in Africa to enact cryptocurrency laws. A recent government gazette shows that the government of Botswana has drafted a document recommending regulation of virtual asset businesses and giving the regulator functions and powers, which will now be submitted to the country’s legislators. In the draft, Botswana authorities said they not only seek to recognize cryptocurrency transactions, but also plan to incorporate “provisions to manage, mitigate and prevent money laundering and the financing of terrorism” into the proposed law. The draft also seeks to prevent proliferation risks associated with virtual assets, emerging business practices and technologies. Regarding companies or entities that issue tokens, the draft bill states, “Part III further provides that if the applicant proves that it has the necessary infrastructure and resources to carry out the business activities of a virtual asset service provider or ICO issuer, And the applicant is a suitable person and the regulator can grant the licence. The definition of 'suitable' in section 11(2) is consistent with the provisions of the Financial Intelligence Act."