Zambia

**Report: Retail Cryptocurrency Trading Status in Zambia**

**Date:** April 12, 2025

**Topic:** Retail_Trading_Status

**Description:** Assessment of the legal permissibility for individual citizens and residents in Zambia to buy, sell, and hold cryptocurrencies, including the regulatory environment surrounding this activity (e.g., KYC/AML requirements, official warnings).

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**1. Current Status:** `Allowed-UnRegulated`

**2. Detailed Narrative Explanation:**

As of early 2025, the buying, selling, and holding of cryptocurrencies by individual citizens and residents in Zambia is **allowed but remains largely unregulated**. There is no specific legislation explicitly prohibiting or formally regulating retail cryptocurrency activities.

The Bank of Zambia (BoZ), the country's central bank, has consistently stated that cryptocurrencies are **not legal tender** in Zambia. This means they cannot be used as an official medium of exchange for pricing goods and services, and the BoZ does not issue or back them. The BoZ Act grants the central bank the exclusive right to issue notes and coins, and it has not extended this to any form of cryptocurrency.

Both the BoZ and the Securities and Exchange Commission (SEC) Zambia have issued warnings to the public regarding the risks associated with cryptocurrencies. These warnings highlight the lack of regulatory oversight, the potential for financial loss due to volatility, fraud, hacking, and the use of cryptocurrencies for illicit activities like money laundering and terrorism financing. They emphasize that any engagement with cryptocurrencies is done **at the individual's own risk**, with no legal recourse available through the current financial regulatory framework.

Despite these warnings and the lack of formal regulation, Zambian authorities have not banned cryptocurrency trading. Instead, they have adopted a cautious monitoring approach. The BoZ has stated its position is that regulation should enable, not constrain, innovation and that it is actively monitoring developments. Similarly, the SEC Zambia has indicated it assesses digital assets on a case-by-case basis to determine if they qualify as securities under the Securities Act. Platforms facilitating cryptocurrency transactions within Zambia are cautioned to ensure they comply with existing securities laws if the assets they handle meet the definition of a security.

Recent developments indicate a potential shift towards regulation. In April 2024, the BoZ launched its Strategic Plan for 2024–2027, which explicitly includes plans to "develop and implement a regulatory framework for crypto assets and stablecoins." This aligns with earlier statements from government officials about testing technology to enable cryptocurrency regulation and positioning Zambia as a technology hub. In May 2024, the BoZ Governor reiterated the intent to develop a regulatory framework, acknowledging the growing use of cryptocurrencies, particularly among young people, while reaffirming that current activities are undertaken at the user's own risk.

Furthermore, international cryptocurrency exchanges like Binance have expanded services to Zambia, allowing users to trade crypto using Zambian Kwacha (ZMW) via mobile money, indicating active retail participation in the market. These platforms often implement their own KYC/AML procedures, though these are not currently mandated by specific Zambian crypto regulations.

In summary, while Zambians are free to trade cryptocurrencies, the activity exists outside the formal regulatory perimeter. Authorities acknowledge its existence and growing popularity, have issued warnings about the risks, and have signaled clear intentions to develop a specific regulatory framework in the near future. Until such regulations are implemented, the status remains Allowed-Unregulated.

**3. Relevant Text Excerpts:**

*   **Bank of Zambia (BoZ) - Press Release (Undated, referenced frequently):**
    *   "cryptocurrencies are not legal tender in Zambia."
    *   "BoZ does not oversee, supervise nor regulate the cryptocurrency landscape. Consequently, any and all activities related to the buying, trading or usage of cryptocurrencies are performed at owner's risk."
    *   "Some of these risks include money laundering, financing activities of terrorism and general consumer protection risks such as fraud and hacking, to which in most cases, no legal recourse would be available to customers due to the unregulated nature of cryptocurrency-related transactions."
    *   "In line with BOZ's position that regulation should not constrain but enable innovation, BoZ will continue to actively monitor all developments."

*   **Bank of Zambia (BoZ) - FAQs Page (Accessed April 2025):**
    *   "Cryptocurrencies are not legal tender in Zambia... BoZ does not oversee, supervise nor regulate the cryptocurrency landscape and all activities are therefore performed at owner's risk."

*   **Securities and Exchange Commission (SEC) Zambia - Notice (August 1, 2019):**
    *   "...currently these products/assets are not regulated by the Commission unless they meet the definition of a security as defined by the Act and this... will be considered on a case by case basis."
    *   "It is for this reason that the Commission would like to urge any individuals or entities that are currently investing in or intend to invest in cryptocurrencies and related products/assets to exercise restraint and caution as they do so as the products/assets are largely unregulated and not subject to the jurisdiction of the Commission."
    *   "...caution those that are operating any systems and platforms within Zambia that effect or facilitate transactions for the above mentioned products/assets to ensure that they are not in any way abrogating any part of the Act and that those that meet the description of securities in accordance with the Act are registered with the Commission."

*   **Zambia Legal Business News (Reporting on BoZ Strategic Plan, April 2024):**
    *   "Of note is the plan to develop and implement a regulatory framework for crypto assets and stablecoins."
    *   "Currently, the Bank of Zambia does not oversee, supervise, or regulate the cryptocurrency landscape."

*   **Zambia Monitor (Reporting on BoZ Governor statements, May 16, 2024):**
    *   "In a significant move, the Bank of Zambia (BoZ) has announced its intent to develop a regulatory framework for the use of cryptocurrencies in the country, cautioning individuals already involved in these transactions that they were doing so at their own risk."
    *   BoZ Governor Kalyalya: “But we know there are some young people who are already dealing in those things but it is not our issuance, they are doing it on their own and if you are a victim you are on your own at this point. But we are moving towards getting a framework to regulate that.”

*   **TechNext (August 22, 2024):**
    *   "Binance, a global cryptocurrency exchange platform, has announced the expansion of its African services with a new feature enabling users in Ghana, Tanzania, Uganda, and Zambia to trade crypto assets using mobile money."
    *   "In July 2024, Binance included the process of trading crypto using GHS (Ghanaian Cedi), UGX (Ugandan Shilling), ZMW (Zambian kwacha), and TZS (Tanzanian Shilling) on its app and website."

**4. Source URLs:**

*   **Bank of Zambia - Press Release on Cryptocurrencies:** [https://www.boz.zm/press_release_on_cryptocurrencies.htm](https://www.boz.zm/press_release_on_cryptocurrencies.htm) (Note: While the specific press release date isn't on the page, its content is consistently referenced and reflected in the FAQs).
*   **Bank of Zambia - FAQs:** [https://www.boz.zm/frequently_asked_questions.htm](https://www.boz.zm/frequently_asked_questions.htm)
*   **Securities and Exchange Commission Zambia - Notice on Cryptocurrencies:** [http://www.seczambia.org.zm/notice-on-cryptocurrencies-and-related-digital-products-assets/](http://www.seczambia.org.zm/notice-on-cryptocurrencies-and-related-digital-products-assets/)
*   **Zambia Legal Business News - BoZ Strategic Plan 2024-2027:** [https://zambialegalbrief.com/boz-to-develop-and-implement-a-regulatory-framework-for-crypto-assets-and-stablecoins/](https://zambialegalbrief.com/boz-to-develop-and-implement-a-regulatory-framework-for-crypto-assets-and-stablecoins/)
*   **Zambia Monitor - BoZ Intent to Regulate:** [https://zambiamonitor.com/economy/bank-of-zambia-announces-intent-to-regulate-cryptocurrencies-as-usage-surges/](https://zambiamonitor.com/economy/bank-of-zambia-announces-intent-to-regulate-cryptocurrencies-as-usage-surges/)
*   **TechNext - Binance Mobile Money Trading:** [https://technext24.com/2024/08/22/binance-users-in-ghana-uganda-zambia-can-now-trade-crypto-assets-via-mobile-money/](https://technext24.com/2024/08/22/binance-users-in-ghana-uganda-zambia-can-now-trade-crypto-assets-via-mobile-money/)
*   **Tech In Africa (Summary Article - April 2023):** [https://techinafrica.com/zambias-cryptocurrency-regulations-an-overview/](https://techinafrica.com/zambias-cryptocurrency-regulations-an-overview/)

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**Disclaimer:** This report is based on publicly available information up to April 12, 2025. The regulatory landscape for cryptocurrencies is rapidly evolving, and users should consult official sources or seek professional advice for the most current status.