The Zimbabwean government has initiated a study to develop regulations for the virtual asset industry.

On June 12, the Zimbabwe Mail reported that the government had established a committee to collect data from crypto companies operating within the country. This study aims to provide a detailed understanding of the country’s crypto industry, including its size and scope.

The committee is inviting contributions from both local and international crypto firms. The submission deadline is June 26.

Study to usher in regulatory clarity for Zimbabwe

Nick Mangwana, Zimbabwe’s Permanent Secretary for Information and Publicity, described the study as a ‘comprehensive project.’ Its goal is to offer an in-depth overview of the country’s crypto sector and serve as a foundation for future regulations.

He stated:

“Firstly, we aim to determine the nature and extent of the cryptocurrency ecosystem in Zimbabwe. This involves mapping out the various actors and activities within the space to get a clearer picture of its scope and scale.”

He also emphasized the importance of assessing digital assets risks, such as money laundering and other illicit activities. Mangwana noted:

“Our objective is to evaluate the dangers of cryptocurrencies being misused for money laundering, terrorism financing, and other illicit activities. Given the anonymity and decentralization that characterize these digital assets, it is crucial to identify and mitigate any associated risks.”

The study is expected to lead to the creation of a comprehensive regulatory framework that will foster innovation and strengthen Zimbabwe’s financial system.

Meanwhile, these efforts reflect how crypto adoption has surged in Africa. Many Africans use crypto to bypass banking and foreign exchange rate restrictions, and governments are starting to recognize the asset benefits for their citizens.

As a result, several African nations, including Kenya, are progressing in developing the crypto industry.

Binance CEO Richard Teng has called for the release of Tigran Gambaryan, the exchange’s detained executive in Nigeria.

In an extensive May 7 blog post, Teng said Gambaryan’s detention was unjust and set a dangerous precedent. He said:

“To invite a company’s mid-level employees for collaborative policy meetings, only to detain them, has set a dangerous new precedent for all companies worldwide.”

Gambaryan is a US citizen who heads the crypto exchange’s financial crime compliance department. He and Nadeem Anjarwalla, Binance’s regional manager for Africa, were apprehended upon their arrival in Nigeria’s capital, Abuja, on Feb. 26. Anjarwalla escaped custody on March 22.

Teng pointed out that Gambaryan “did not go to Nigeria as a ‘decision-maker,’ nor a ‘negotiator.’ He was merely acting as a functional expert in financial crime and capacity building in policy discussions.”

He accused Nigeria of detaining the Binance employee as a part of efforts to exert control over the exchange.

According to Teng:

“The message from the Nigerian government is clear: we must detain an innocent, mid-level employee and a former US federal agent, and place him in a dangerous prison in order to control Binance.”

He concluded that Nigeria should “let Tigran go home to his family, and then Binance will work through the same process that we have done with Nigeria’s law enforcement community voluntarily more than 600 times in the past.”

Binance makes bribe allegations against Nigeria

In his blog post, Teng revealed that the exchange received requests from “unknown persons,” purporting to be representatives of Nigeria’s House Committee on Financial Crimes (HCFC), demanding a “significant payment in crypto to be paid in secret.”

Teng refrained from revealing further details regarding the amount requested.

The New York Times reported that an individual associated with the Nigerian government approached Gambaryan and asked for a bribe amounting to approximately $150 million in crypto.

However, Teng said the exchange declined the “payment demand” because it did not “view it to be a legitimate settlement offer.”

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