Botswana

**Report on the Current Status of Retail Cryptocurrency Trading in Botswana**

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Identified Status**

Allowed-Regulated

**2. Detailed Narrative Explanation**

Retail cryptocurrency trading is legally permitted in Botswana but is now subject to a specific regulatory framework. Historically, Botswana's stance on cryptocurrency was cautious, with the Bank of Botswana (BOB) initially stating it had no intention of regulating cryptocurrencies and warning citizens about the risks involved due to the lack of a specific legal framework. The BOB highlighted that individuals trading in cryptocurrencies would have no legal recourse in case of financial losses and that these assets were not considered legal tender.

However, this landscape has evolved significantly with the introduction of the Virtual Asset Act, 2022. This Act, which commenced on February 24, 2025, aims to regulate the sale and trade of virtual assets, license virtual asset service providers (VASPs), and issuers of initial token offerings. The primary objective of this legislation is to manage and mitigate risks associated with virtual assets, particularly concerning money laundering and financing of terrorism.

Under the Virtual Asset Act, 2022, any entity conducting virtual asset business, including exchanges facilitating the buying and selling of cryptocurrencies, must obtain a license from the Non-Bank Financial Institutions Regulatory Authority (NBFIRA). This requirement brings VASPs under a regulatory ambit that includes Anti-Money Laundering (AML) and Know Your Customer (KYC) obligations. NBFIRA is responsible for overseeing these entities and ensuring compliance with the new regulations. The Act also specifies penalties for unlicensed operations.

While individual citizens and residents are permitted to buy, sell, and hold cryptocurrencies, they are advised to exercise due diligence and understand the inherent risks. The Bank of Botswana continues to monitor the crypto asset space and has acknowledged that while current risks to financial stability are limited due to the market's nascent stage, regulatory oversight is crucial as the sector evolves and becomes more interconnected with the traditional financial system.

The implementation of the Virtual Asset Act, 2022, signifies a shift from an unregulated environment to a regulated one, aiming to provide a safer framework for cryptocurrency activities in Botswana and align the country with international standards in combating financial crime. Several exchanges have sought and obtained licenses to operate under this new framework.

**3. Specific, Relevant Text Excerpts**

*   **Bank of Botswana (November 2021):** "There is no specific legal or regulatory framework pertaining to, or proscribing investment, in crypto assets, such as bitcoin in Botswana. Therefore, trading in bitcoin or similar decentralised technologies, also known as 'cryptocurrency', is akin to investment in any other intangible assets with attendant risks, inherent in such investments, such as complete loss of value or possible abuse of the technologies to the detriment of investors."
*   **Virtual Assets Act, 2022 (Commencement: February 24, 2025):** "An Act to regulate the sale and trade of virtual assets, licensing of virtual asset service providers and issuers of initial token offerings, and to provide for matters connected, incidental and related thereto."
*   **Shufti Pro (February 2022), referencing the then "Virtual Assets Bill":** "The new bill comes with the obligation that any money exchange, virtual assets service providers, or any kind of businesses associated with cryptocurrency or digital token trading need to get a license from the Non-Bank Financial Institution Regulatory Authority."
*   **UPay Blog (November 2024):** "However, any company offering crypto services has to obtain a license from the Non-Bank Financial Institutions Regulatory Authority to offer such services... However, in 2022, Botswana made an interesting move by introducing new regulations through the Virtual Assets Act. According to Section 3(b), this Act applies to anyone involved in virtual asset businesses, regardless of their location. This means that if your company offers cryptocurrency services or deals with digital tokens, you'll need to obtain a license from the Non-Bank Financial Institutions Regulatory Authority."
*   **Smile ID (October 2024):** "Botswana's Virtual Asset Act regulates virtual asset service providers (VASPs) by requiring them to register with the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) and comply with AML/KYC obligations."
*   **We Are Tech Africa (October 2022), on Yellow Card obtaining a license:** "The license, per Section 11 of the Virtual Assets Act 2022, was issued by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) on September 29, 2022, and will become the standard for crypto operations in the country. The license officially authorizes Yellow Card to facilitate bitcoin sales and purchases for its users in Botswana."
*   **ITWeb Africa (March 2023):** "Since the Virtual Assets Act came into effect on 22 February 2022, NBFIRA has intensified measures against unregistered crypto dealers in Botswana... Botswana's Virtual Assets Act specifies penalties to be levied against unlicenced operators, that include fines of up to P250 000 or imprisonment for a term not exceeding five years or both."
*   **Bank of Botswana (January 2025), from its Financial Stability Report:** "The Bank of Botswana articulated that while the risks arising from crypto assets are limited at present, ongoing misconduct in this segment raises substantial regulatory concerns. 'Regulators therefore need to develop effective oversight frameworks for the sector,' stated the central bank, indicating an urgent need to prepare for the inevitable evolution of the cryptocurrency landscape."

**4. Direct, Accessible URL Links to Specific Sources**

*   **Bank of Botswana Statement on Crypto Assets – Participation and Regulation (November 10, 2021):** [https://www.bankofbotswana.bw/news/statement-crypto-assets-%E2%80%93-participation-and-regulation](https://www.bankofbotswana.bw/news/statement-crypto-assets-%E2%80%93-participation-and-regulation) (Also referenced in)
*   **Virtual Assets Act, 2022 (Act 4, 2025, S.I. 9, 2025 - Commencement February 24, 2025) - Blackhall's Laws of Botswana:** [https://laws.gov.bw/node/3037](https://laws.gov.bw/node/3037) (Note: The search result indicates "Act 4, 2025, S.I. 9, 2025" with a commencement date of "24th January, 2025". The official laws.gov.bw site should be the primary reference for the exact Act number and commencement details if there's a discrepancy. The link provided is a general link to the laws portal; a direct link to the Act itself would be ideal if available through further navigation on the site.)
*   **Botswana Passes New Cryptocurrency Bill, Aiming to Curb Money Laundering - Shufti Pro (February 3, 2022):** [https://shuftipro.com/news/botswana-passes-new-cryptocurrency-bill-aiming-to-curb-money-laundering/](https://shuftipro.com/news/botswana-passes-new-cryptocurrency-bill-aiming-to-curb-money-laundering/)
*   **Crypto Adoption Around the World: Botswana - UPay Blog (November 21, 2024):** [https://upay.africa/blog/crypto-adoption-around-the-world-botswana](https://upay.africa/blog/crypto-adoption-around-the-world-botswana)
*   **Ultimate Guide to AML Compliance for Crypto in 2025 - Smile ID (October 24, 2024):** [https://usesmileid.com/blog/guide-to-aml-compliance-for-crypto/](https://usesmileid.com/blog/guide-to-aml-compliance-for-crypto/)
*   **Yellow Card secures virtual asset provider license in Botswana - We Are Tech Africa (October 2022):** [https://wearetech.africa/en/fintech-en/yellow-card-secures-virtual-asset-provider-license-in-botswana/](https://wearetech.africa/en/fintech-en/yellow-card-secures-virtual-asset-provider-license-in-botswana/)
*   **Yellow Card Receives First-Ever African Crypto Licence - Yellow Card (Press Release, likely October 2022):** [https://yellowcard.io/blog/yellow-card-receives-first-ever-african-crypto-licence/](https://yellowcard.io/blog/yellow-card-receives-first-ever-african-crypto-licence/)
*   **Botswana clamps down on unregistered crypto dealers - ITWeb Africa (March 19, 2023):** [https://itweb.africa/content/DZQ58vV8APN7zXy2](https://itweb.africa/content/DZQ58vV8APN7zXy2)
*   **Botswana Central Bank Acknowledges Low Cryptocurrency Risks While Advocating for Regulatory Measures - iGaming AFRIKA (January 8, 2025):** [https://igamingafrika.com/botswana-central-bank-acknowledges-low-cryptocurrency-risks-while-advocating-for-regulatory-measures/](https://igamingafrika.com/botswana-central-bank-acknowledges-low-cryptocurrency-risks-while-advocating-for-regulatory-measures/)
*   **Botswana Government Set to Present Virtual Asset Bill to Parliament - Bitcoin.com News (January 21, 2022):** [https://news.bitcoin.com/botswana-government-set-to-present-virtual-asset-bill-to-parliament/](https://news.bitcoin.com/botswana-government-set-to-present-virtual-asset-bill-to-parliament/)
*   **Blockchain and Cryptocurrency in Africa - Baker McKenzie (Report, older but provides historical context):** [https://www.bakermckenzie.com/-/media/files/insight/publications/2019/09/report_blockchainandcryptocurrencyinafrica_en.pdf](https://www.bakermckenzie.com/-/media/files/insight/publications/2019/09/report_blockchainandcryptocurrencyinafrica_en.pdf) (Referenced in for historical context)
*   **Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Website:** [https://www.nbfira.org.bw/](https://www.nbfira.org.bw/) (This is the regulatory body responsible for licensing VASPs).