Like in most parts of the world, virtual asset industry is also establishing a basecamp in Botswana also. The camping has been duly noticed by country’s official bank i.e. The Bank of Botswana (BOB).
In this context an official statement has been issued from BOB’s media platform on Wednesday, the 10th of November, 2021. In this statement, first of all, BOB acknowledged certain aspects with regard to country’s crypto market. Firstly, BOB admitted the fact that there exists a digital asset industry in the country which is growing very rapidly. Secondly, the bank also confirmed that the local investors have been investing in that industry and carrying out crypto trading. Thirdly, BOB itself has been receiving multifarious inquiries from the general public on the subject of cryptocurrencies.
The second part of BOB’s statement talked about some of the concerns and observations that BOB has with regard to crypto. BOB said in the statement that it has been closely monitoring the developing taking place in the local digital asset industry. Investors are fearlessly investing and the daily crypto trade volume has been increasing twice every day. However, the investors are ignoring the harsh reality which is that crypto regulation is none in the country. Virtual assets lack recognition as well as there are no safeguards against crypto investment. Bitcoin is the most invested virtual asset in Botswana as it is in the rest of the world. But again, there are no prescribed framework for Bitcoin investment.
The third portion of the statement gives a clue how BOB is treating Bitcoin or any other virtual currency. In this portion, BOB has observed that Bitcoin investment is risky and one cannot ignore the chances of losing all the money at once. In these circumstances, BOB advised that it cannot help the investors in case they are exposed to unseen risks. Nor is there any law in force which can safeguard investors’ money or that they can seek redressal from the Court.
The bank then warned the investors by advising them to conduct a thorough and comprehensive due diligence. There could be fraudulent crypto schemes which might be waiting for the investors to come to them.
From the above statement of BOB it is obvious that BOB is acknowledging that there is no law governing crypto or crypto investment. Similarly, in the near future, there is no possibility of providing any crypto regulatory framework, otherwise BOB would have showed some intent. In addition, the bank has indirectly clarified that crypto trading is neither banned nor declared illegal. If anyone wishes to engage with crypto, then the person would do so at his own risk and cost. Either BOB nor the Government or any governmental authority would be held responsible for an investor’s loss in crypto.
