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Zanzibar to adopt and regulate crypto

Zanzibar

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TL;DR

TL;DR Breakdown

  • Zanzibar is planning to adopt and regulate crypto.
  • Officials are drawing up a regulatory framework.
  • Africa’s crypto market jumps by 1,200%.

With most traders across countries choosing to trade digital assets, countries are presently looking to regulate it. Although some countries are still opposed to the assets, others look to it as an income generator. With this in mind, Zanzibar has announced that it is currently looking into the possibility of regulating and adopting crypto across the state. Zanzibar, a semi-autonomous state in Tanzania, is on the verge of holding meetings with several parties across the state.

Zanzibar officials draw up crypto regulatory framework

According to State Minister Mudrick Soraga, the state has plans to conduct meetings with financial institutions and ministries to draw out a regulatory framework for the assets. The move is an integral part of the government’s plans to fully recognized digital assets across the state. This transition is coming at a good time, especially with Bitcoin’s market cap topping above $3 trillion some days ago.

The official mentioned that all things do not point to them adopting the assets as they still need to consult some essential parties. The report by The Citizen stressed that the autonomous state must put some things in place before they can officially adopt digital assets. This means that Zanzibar will present its motion to the Bank of Tanzania, explaining its benefits and the policies guiding its usage.

African crypto market jumps above 1,000%

Giving a statement on the issue, the head of the Association of Bankers, Abdulmajid Nsekela, Zanzibar needs to learn a lot regarding the new technologies. In his opinion, any state or country that intends to adopt digital assets must inquire from other countries already adopting them. This latest announcement is coming off the back of a recent call by the president of Tanzania for the Central bank of Tanzania to start looking into the possibilities of adopting crypto.

After establishing its digital assets law around June, El Salvador became the first country to adopt Bitcoin as an official currency. According to experts around the market, most countries will follow El Salvador in making crypto their official currency. Even though most people did not know which country would follow in El Salvador’s stead, it was possible it could be an African country. This is because the crypto market in Africa has jumped above 1,000% in one year. At the beginning of November, the team behind Cardano was in talks with some parties in Zanzibar.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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