Bank of Zambia (BoZ) says it has embarked on the development and implementation of a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs) operating in the country.
Virtual Asset Service Providers are businesses that facilitate the exchange, transfer, custody, or administration of cryptocurrencies for customers.
According to a public notice issued by Bank Assistant Director-Communications, Besnat Mwanza, the regulatory framework being developed, in collaboration with other regulators and stakeholders, is aimed at mitigating risks associated with virtual asset technologies, in a bid to maintain financial system stability, promote innovation and safeguard consumers.
“The Bank of Zambia’s Strategic Plan for 2024-2027 acknowledges the potential benefits of virtual asset technologies, such as reduced transaction costs, expedited transfer of value, and the resilience of a decentralised system against a single point of failure,” she said.
“However, these technologies also pose risks to the financial sector, including price volatility, lack of visibility of service providers and participants as well as the risk of money laundering, terrorist financing and proliferation financing.”
Ms. Mwanza stated that as part of the regulatory process, all entities and individuals providing virtual/crypto asset services within Zambia have been urged to register with the Bank by 27th March, 2026.
She explained that the registration applies to both resident and non-resident entities/individuals that offer virtual asset services to individuals and businesses within Zambia, regardless of their physical presence.
“Furthermore, this registration is required for a natural or legal person who, as a business, conducts exchange between virtual assets and fiat currencies,
exchange between one or more forms of virtual assets, transfer of virtual assets, safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and
participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset,” Ms. Mwanza stated.
She further explained that the registration process will enable the Central Bank to create a central database of all VASPs operating in Zambia, assess the scale, scope, and nature of virtual asset activities within the country, gather essential data to inform decisions and the development of a comprehensive and risk-based regulatory framework.
Ms. Mwanza added that the registration will also enable the Bank to enhance its ability to monitor the sector for compliance with existing laws and international standards, conduct consultations with the registered VASPs as part of the development, and implement the regulatory framework.
“This registration exercise is a preliminary step and does not constitute a license or official approval to operate as a VASP in Zambia. This notice should not be construed as an endorsement of a VASP or its business practices,” Ms. Mwanza said.
“The Bank of Zambia will release a comprehensive regulatory framework in due course, and all registered VASPs will be required to comply with such regulations to continue their operations in Zambia.”
She advised VASPs and the public that effective 30 March 2026, all entities regulated by the Bank will not be allowed to facilitate transactions to or from VASPs that are not registered with the Bank.
