Botswana Central Bank: Crypto Market Risks'Limited 'But Calls for Stronger Regulation

The Bank of Botswana's Financial Stability Report states that risks to financial stability are currently "limited" due to the immature development of the local crypto market. But the central bank stressed the need for a regulatory framework to guard against future latent risks, and listed the use of digital payment instruments for money laundering and terrorist financing as one of the top five national security risks.
The report shows that while the increased interconnectivity of the crypto market with the traditional financial system may pose systemic risks, the current risks are manageable due to the relatively simple nature of the local virtual asset market in Botswana. The central bank called on crypto service providers to comply with regulatory requirements such as anti-money laundering (AML) and counter-terrorism financing (CFT), and recommended market monitoring and law enforcement cooperation to combat illegal activities.