Botswana and Cryptocurrency

Botswana Cryptocurrency Law

Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Is cryptocurrency legal in Botswana?

Currently, there are no regulations on cryptocurrencies or the use of blockchain technology in Botswana. According to a 2018 Ecobank study, Botswana’s relationship with cryptocurrency is contentious, but currently, it appears that the Government continues to monitor the technology.

Over time, government-affiliated officials have treated cryptocurrency skeptically.[1] For example, Andrew Sesinyi, Head of Communications at the Bank of Botswana (BOB), addressed cryptocurrency, stating that the BOB “does not regulate cryptocracies and/or related distributed ledger technologies and is thus not undertaking any studies in that direction.”[2] Further, Governor of the BOB Moses Pelaelo informed the public that cryptocurrencies are neither controlled nor regulated by the BOB,[3] cannot be transferred into Botswanan Pula,[4] and pose a threat to the efficacy of central bank mandates.[5]

Despite the Government’s view of cryptocurrency, there is a small yet active Bitcoin economy in Botswana.[6] This community uses apps like Facebook or WhatsApp and exchanges like Altcoin Trader.[7] Although there are not cryptocurrency exchanges in Botswana, a Bitcoin exchanged—Belfrics—announced plans to launch in Botswana after launching in Kenya in 2017.[8]

Although cryptocurrency remains unregulated in Botswana, some expect that the continued launch of blockchain startups will necessitate reconsideration and closer scrutiny by the Bank of Botswana.[9]

Do you have questions about cryptocurrency, digital currencies, or blockchain technology? Freeman Law can help with digital currencies, tax planning, and tax compliance.   Contact us now or Schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.