Regulatory Development in Zimbabwe
In an important regulatory development, the Financial Intelligence Unit (FIU) of Zimbabwe has announced that all virtual asset service providers (VASPs) must officially register with the governing agency. This directive, issued on June 16, marks a significant step as Zimbabwe moves towards a formalized and regulated approach for cryptocurrency businesses.
Legislative Changes
The initiative follows the amendment of the Finance Act No. 7 of 2025, which was enacted in December 2025, altering Section 2 of Zimbabwe’s Money Laundering and Proceeds of Crime Act to explicitly classify VASPs as financial institutions. In alignment with this legislative change, the Zimbabwean Minister of Finance introduced the Money Laundering and Proceeds of Crime (Virtual Asset Service Providers Registration) Regulations through Statutory Instrument 99 of 2026, gazetted on June 10, 2026. This law mandates that all individuals or organizations involved in the exchange of cryptocurrencies and fiat currencies must register, including those offering custody and related financial services for digital assets.
Compliance and Oversight
The primary intention behind this framework is to ensure compliance with global standards concerning anti-money laundering (AML) and countering the financing of terrorism (CFT). As the designated supervisory body, the FIU is tasked with enforcing these measures to enhance regulatory oversight. However, the unit has made it clear that registering with them is solely for monitoring purposes and does not furnish businesses with a commercial license.
The FIU’s notice highlights that such registration does not equate to permission to operate in the country, stressing that VASPs must also secure any additional necessary licenses or approvals from relevant authorities, such as the Reserve Bank of Zimbabwe (RBZ) or the Securities and Exchange Commission of Zimbabwe, based on their operational model.
Risks in the Cryptocurrency Market
Furthermore, the FIU cautioned the public about the inherent risks associated with the cryptocurrency market. They reiterated that mere registration does not safeguard investors from potential financial losses. Key risks include:
- Market volatility
- Cyber threats
- Scams
- Absence of compensation mechanisms that are typically available in traditional banking systems
This legislation effectively serves to legitimize and regulate the cryptocurrency sector in Zimbabwe as outlined in Statutory Instrument 99 of 2026.
