Africa is gradually establishing itself as one of the strong cryptocurrency markets. This makes complying with national and international regulations a requirement for actors looking to capitalize on the market.
Pan-African cryptocurrency exchange Yellow Card announced, Tuesday, it secured a virtual asset service provider license to operate in Botswana. The license, per Section 11 of the Virtual Assets Act 2022, was issued by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) on September 29, 2022, and will become the standard for crypto operations in the country.
The license officially authorizes Yellow Card to facilitate bitcoin sales and purchases for its users in Botswana. According to Chris Maurice, CEO, and co-founder of Yellow Card, this is an important milestone for the company, as it will open up "greater channels of expansion with regards to payment partners, banking and expanding our client base across Africa.”
“This will further show regulators in other markets that we are not just any other cryptocurrency company – we are pioneering, pushing boundaries, and setting the standard. All the more reason for them to work together with us as well,” he added.
Botswana is one of the few countries in the world to take significant steps to regulate cryptocurrencies and digital tokens. Last February, the government passed a bill to regulate cryptocurrency and digital token trades in the country, all in a bid to combat money laundering.
Despite its about two million population, Botswana has significant purchasing power thanks to its currency (the pula), which is stronger than most African currencies. The population is constantly looking for innovation, hence the adoption of digital currency. According to gobitcoin.io, an African Bitcoin news site, Botswana is one of the top Bitcoin users in Africa alongside Ghana, Kenya, Nigeria, South Africa, Zimbabwe, and most recently the Central African Republic.
The newly regulated firm, Yellow Card, says it also complies with key global regulations, including anti-money laundering and know-your-customer requirements under the Travel Rule introduced by the Financial Action Task Force.
Samira Njoya
