Botswana central bank flags 'minimal’ crypto risks but urges regulation
Botswana's central bank reports that local crypto markets are underdeveloped, posing minimal risks to financial stability. However, it emphasizes the need for regulatory frameworks to address potential future risks associated with digital assets. The interconnectedness of the crypto market with the broader financial system could lead to systemic risks, which may trigger economic downturns. The bank identifies money laundering and terrorist financing as significant national security risks linked to digital payment instruments. It highlights the anonymity of transactions as a facilitator for illicit activities. To combat these risks, the central bank calls for compliance from virtual asset service providers with anti-money laundering regulations and recommends enhanced market surveillance and collaboration with law enforcement.
