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Eswatini

Retail_Trading_Status

Allowed-Unregulated Unknown
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Status Changed

Previous status: Allowed-UnRegulated

Okay, as a specialized financial regulatory analyst, I've reviewed both the "Previous Analysis" (dated April 13, 2025) and the "New Analysis" (dated June 26, 2025) for the Retail_Trading_Status in Eswatini. Here's a detailed breakdown of the changes that occurred in the analysis result: **Overall Summary of Changes:** The core status of "Allowed-UnRegulated" remains unchanged between the two reports. However, the "New Analysis" incorporates more recent information, particularly from statements and data emerging around mid-2024 (specifically the CBE Governor's Monetary Policy Statement, which, though delivered in June, is referenced with an August 2024 publication/BIS date in some links). This leads to updated details on monitoring activities, observed market trends (inflows), and a slightly refined perspective on existing AML/CFT frameworks. The new report also includes a broader range of source links, some of which are more direct or recent. A notable omission in the new report's narrative is the explicit mention of the "Digital Lilangeni" (CBDC) project, which was present in the previous analysis. **Detailed Changes by Section:** **1. Identified Status / Most Accurate Current Status:** * **Previous Analysis:** Allowed-UnRegulated * **New Analysis:** Allowed-UnRegulated * **Change:** No change in the fundamental status. **2. Detailed Narrative Explanation:** * **Consistency:** Both reports correctly identify that retail trading is not prohibited but lacks specific regulation, cryptocurrencies are not legal tender, and warnings have been issued. The role of the Crypto Assets Task Force (CATF) and the ESEPARC survey findings (8.6% engagement) are mentioned in both. * **New Information/Emphasis in "New Analysis":** * **AML/CFT Context:** The new report provides more specific context on existing general AML/CFT frameworks, mentioning "The Money Laundering and Financing of Terrorism (Prevention) (Amendment) Act 2016" and the "Financial Intelligence Unit (FIU) Eswatini." While it still concludes a lack of *crypto-specific* AML/KYC, it better situates the crypto situation within the broader national AML landscape. * **CBE Monitoring & Market Trends:** A significant addition is the information that "The CBE is actively monitoring cryptocurrency-related transactions to understand consumer trends and inform potential regulatory actions" and the observation that "From January to June 2024, there has been a significant increase in the value of inflows from crypto exchanges, particularly those based in South Africa." This is new data not present in the previous report. * **ESEPARC Survey Detail:** The new report adds the detail that the 8.6% involvement is "primarily through exchanges based in neighboring countries." * **Omissions in "New Analysis" Narrative:** * **CBDC (Digital Lilangeni):** The previous report explicitly mentioned the CBE's research and development of a potential CBDC, the "Digital Lilangeni," and clarified it was separate from private cryptocurrency regulation. This specific point is absent from the narrative of the new analysis. * **Specifics on Lack of Protection:** While both mention lack of protection, the previous report was slightly more explicit in its initial paragraphs about "no deposit insurance or compensation scheme." * **Refinement:** The new report seems to integrate information from the CBE Governor's June 2024 Monetary Policy Statement (referenced as August 2024 in some source links) more directly into its narrative regarding monitoring and recent trends. **3. Relevant Text Excerpts:** * **New Excerpts Added in "New Analysis":** * The most significant additions are direct quotes from the "Central Bank of Eswatini (Governor's Annual Monetary Policy Statement, August 2024)" and the "Bank for International Settlements (citing CBE Governor Phil Mnisi, August 2024)." These excerpts introduce: * Reiteration of unregulated status and ongoing monitoring for potential regulatory interventions. * Details on active monitoring of transactions and the observed increase in inflows from South African exchanges in H1 2024. * The ESEPARC study finding of 8.6% involvement via exchanges in neighboring countries. * An excerpt from "Tech In Africa (citing Freeman Law, April 2023)" is included. * **Excerpts Carried Over (Similar Content):** Many core messages are supported by similar (though sometimes re-sourced or slightly rephrased) excerpts, such as: * Cryptocurrencies not being legal tender and being unregulated (CBE & FSRA, March 2023). * Warnings about risks and lack of protection (Freeman Law, CBE). * Formation and aim of the CATF (Inside Biz, May 2023). * **Excerpts De-emphasized or Replaced in "New Analysis":** * The previous report had a specific quote from "UPay Blog" and a more prominent reference to a "Baker McKenzie" report (citing a 2017 CBE statement). While the underlying message about lack of regulation and warnings persists, these specific sources/quotes are not directly carried into the new report's excerpt list, likely superseded by more recent or direct CBE statements. * The previous report's reference to "Eswatini Baseline Cryptocurrency Survey, via Google Search Snippet [3]" is now more substantively covered by direct quotes from the Governor's statement discussing the survey. **4. Source URLs:** * **New Sources Added in "New Analysis":** * `Tech In Africa - Cryptocurrency Regulations in Swaziland` (though it cites Freeman Law). * `Eswatini Baseline Cryptocurrency Survey (ESEPARC & CBE)` (a direct link to the survey). * `Central Bank of Eswatini - Governor's Annual Monetary Policy Statement (August 14, 2024)` (direct link to the CBE document, covering the June 2024 speech). * `Bank for International Settlements - Phil Mnisi: Annual Monetary Policy Statement Address (August 14, 2024)` (BIS link for the same speech). * `Smile ID - Digital Identity Verification for Eswatini` (relevant for potential future KYC discussions). * `Zendetect - AML & CFT Compliance in Swaziland` (relevant for the enhanced discussion on general AML frameworks). * **Sources Maintained (or Updated Versions):** * CBE - Considerations For Dealing In Cryptocurrencies (March 2023). * Freeman Law - Swaziland and Cryptocurrency. * Inside Biz - Central Bank & FSRA Collaborate To Form Crypto Assets Task Force (May 2023). * **Sources from Previous Analysis Not Explicitly Listed in New Analysis:** * The specific BIS link for the June 2024 Monetary Policy Statement from the previous report (`https://www.bis.org/review/r240814g.htm`) is effectively replaced/updated by the new links pointing to the same speech (one direct from CBE, another from BIS with an August 2024 date). * `UPay Blog`. * `Baker McKenzie` (the 2018 report referencing a 2017 statement). **Conclusion of Changes:** The "New Analysis" provides a more current snapshot by incorporating recent statements and data from mid-2024. This includes new information on the CBE's active monitoring of crypto transactions, observed increases in inflows, and a more nuanced discussion of how general AML/CFT frameworks apply in the absence of crypto-specific ones. The sourcing is also updated with more direct links and additional relevant resources. The omission of the CBDC project from the narrative is a notable difference. The fundamental assessment of "Allowed-UnRegulated" remains consistent, but the supporting details and recency of information have been enhanced.

Analysis ID
#485
Version
Latest
Created
2025-06-26 13:14
Workflow Stage
Live

Executive Summary

As of June 2025, retail cryptocurrency trading in Eswatini is Allowed-Unregulated. The Central Bank of Eswatini (CBE) and the Financial Services Regulatory Authority (FSRA) have cautioned the public about the risks, noting cryptocurrencies are not legal tender and lack legal protections. The CBE and FSRA formed a Crypto Assets Task Force (CATF) in May 2023 to develop national policy recommendations. General AML/CFT frameworks exist, but no specific crypto-focused regulations are in place.

Key Pillars

The primary regulator is the Central Bank of Eswatini (CBE), which is monitoring cryptocurrency developments and researching potential regulations. The Financial Services Regulatory Authority (FSRA) collaborates with the CBE. Core compliance requirements include the Money Laundering and Financing of Terrorism (Prevention) (Amendment) Act 2016. There are currently no specific licensing or registration requirements for cryptocurrency activities.

Landmark Laws

Money Laundering and Financing of Terrorism (Prevention) (Amendment) Act 2016: This act is a key piece of legislation for AML/CFT in Eswatini. It predates the rise of cryptocurrency use, so lacks crypto-specific guidelines. It's enforced by the Financial Intelligence Unit (FIU) Eswatini.

Considerations

Cryptocurrencies are not classified as legal tender in Eswatini. The Central Bank of Eswatini and FSRA have issued warnings about the volatility and potential risks of investing in crypto assets, emphasizing the lack of investor protection due to the unregulated nature. There are no specific crypto-focused Anti-Money Laundering (AML) or Know Your Customer (KYC) regulations, though general financial laws apply. The CBE is monitoring cryptocurrency-related transactions, noting increased inflows from South African exchanges.

Notes

In May 2023, the CBE and FSRA formed a Crypto Assets Task Force (CATF) to develop a national policy recommendations paper for regulating cryptocurrencies. In August 2024, the CBE reiterated that crypto assets remain unregulated and that it will continue to monitor developments. A study commissioned by the CBE revealed low participation in cryptocurrencies (8.6% of respondents) primarily through exchanges based in neighboring countries. The study highlighted limited understanding of cryptocurrencies among the public and instances of scams. There's no evidence of an outright ban, but an emphasis on caution.

Detailed Explanation

As of June 2025, retail cryptocurrency trading in Eswatini is 'Allowed-Unregulated.' This means individuals can buy, sell, and hold cryptocurrencies, but there's no dedicated regulatory framework governing these activities. The Central Bank of Eswatini (CBE) and the Financial Services Regulatory Authority (FSRA) have consistently stated that cryptocurrencies are not legal tender and have cautioned the public about the associated risks, emphasizing that these activities are currently unregulated. They highlight that investors do not benefit from the legal protections associated with regulated financial products. The CBE has indicated it's researching cryptocurrencies and monitoring developments in other countries to inform potential future regulations. In May 2023, the CBE and FSRA formed a Crypto Assets Task Force (CATF) to develop a national policy recommendations paper for regulating cryptocurrencies, aiming to foster responsible innovation while maintaining financial stability. CBE Governor Dr. Phil Mnisi stated that the CATF aims to produce guidelines on how to regulate cryptocurrencies, establishing a secure environment for investors. The CBE also commissioned a national consumer insights survey on crypto assets to understand their use and perception. A study commissioned by the CBE and Eswatini Economic Policy Analysis and Research Centre (ESEPARC) revealed that only 8.6% of respondents reported involvement with cryptocurrencies, primarily through exchanges in neighboring countries, also highlighting limited public understanding and instances of scams. While no specific crypto-focused Anti-Money Laundering (AML) or Know Your Customer (KYC) regulations exist, general financial laws and AML/CFT frameworks are in place. The Money Laundering and Financing of Terrorism (Prevention) (Amendment) Act 2016 is a key piece of legislation in this regard, enforced by the Financial Intelligence Unit (FIU) Eswatini. The CBE has stated that because cryptocurrencies are virtually unregulated, there are no specific AML/KYC compliance requirements for cryptocurrency transactions. The CBE is actively monitoring cryptocurrency-related transactions. From January to June 2024, there has been a noted increase in inflows from crypto exchanges, particularly those based in South Africa. In August 2024, the CBE reiterated that crypto assets remain unregulated. Despite the lack of specific regulation and warnings issued, there is no evidence of an outright ban. The emphasis has been on consumer caution and ongoing efforts to understand and potentially develop a framework for these activities.

Summary Points

Retail Trading Status: Cryptocurrencies in Eswatini (June 2025)

Overall Status: Allowed-Unregulated

  • Retail cryptocurrency trading (buying, selling, and holding) by individuals is permitted but currently unregulated.
  • No specific laws or regulations explicitly prohibit or govern cryptocurrency activities for individuals.
  • The government has not recognized cryptocurrencies as legal tender.
  • Warnings have been issued about the associated risks.

1. Key Regulatory Bodies and Their Roles:

  • Central Bank of Eswatini (CBE):
    • Does not recognize cryptocurrencies as legal tender.
    • Cautions the public about the volatility and potential risks of investing in crypto assets.
    • Actively researching cryptocurrencies and monitoring developments in other countries.
    • Monitoring cryptocurrency-related transactions to understand consumer trends.
  • Financial Services Regulatory Authority (FSRA):
    • Works in collaboration with the CBE.
    • Cautions the public about the volatility and potential risks of investing in crypto assets.
  • Crypto Assets Task Force (CATF):
    • Formed by the CBE and FSRA in May 2023.
    • Developing a national policy recommendations paper for regulating cryptocurrencies.
  • Financial Intelligence Unit (FIU) Eswatini:
    • National agency for combating money laundering.
    • Enforces general AML/CFT frameworks.

2. Important Legislation and Regulations:

  • None Specifically for Cryptocurrencies: No specific regulations exist for cryptocurrency trading.
  • Money Laundering and Financing of Terrorism (Prevention) (Amendment) Act 2016:
    • Key legislation for AML/CFT.
    • General financial laws and AML/CFT frameworks are in place.

3. Requirements for Compliance:

  • No Specific Crypto-Focused AML/KYC: No specific AML/KYC regulations for crypto platforms.
  • General AML/CFT Compliance: Existing financial laws and AML/CFT frameworks apply.

4. Notable Restrictions or Limitations:

  • Lack of Legal Protection: Investors do not benefit from the legal protections associated with regulated financial products.
  • No Legal Recourse: No protection or legal recourse available from any institution, including the CBE, for financial losses due to the unregulated nature of cryptocurrencies.
  • Warnings Issued: The CBE has issued warnings that cryptocurrencies are virtually unregulated.

5. Recent Developments or Changes:

  • Formation of Crypto Assets Task Force (CATF) (May 2023): Aims to develop a national policy recommendations paper for regulating cryptocurrencies.
  • Consumer Insights Survey (2024): CBE commissioned a national consumer insights survey on crypto assets.
    • Revealed a relatively small percentage of the population (8.6%) involved with cryptocurrencies.
    • Highlighted limited understanding of cryptocurrencies among the public and instances of scams.
  • Increased Inflows from Crypto Exchanges (Jan-June 2024): Noted increase in the value of inflows from crypto exchanges, particularly those based in South Africa.
  • Ongoing Monitoring: The CBE is actively monitoring cryptocurrency-related transactions.

Full Analysis Report

Retail Trading Status: Cryptocurrencies in Eswatini

Report Date: 2025-06-26

Topic: Retail_Trading_Status

Description: An assessment of whether individual citizens and residents in Eswatini are legally permitted to buy, sell, and hold cryptocurrencies, detailing the regulatory environment surrounding this activity.

Retail_Trading_Status: Allowed-Unregulated

1. Most Accurate Current Status: Allowed-Unregulated

2. Detailed Narrative Explanation:

As of June 2025, retail cryptocurrency trading (buying, selling, and holding) by individual citizens and residents in Eswatini is Allowed-Unregulated. This means that while there are no specific laws or regulations explicitly prohibiting or governing cryptocurrency activities for individuals, the Eswatini government and its financial regulatory bodies have not formally recognized cryptocurrencies as legal tender and have issued warnings about the associated risks.

The Central Bank of Eswatini (CBE) and the Financial Services Regulatory Authority (FSRA) have stated that cryptocurrencies are not legal tender in the country. They have consistently cautioned the public about the volatility and potential risks of investing in crypto assets, emphasizing that these activities are currently unregulated and, therefore, investors do not benefit from the legal protections associated with regulated financial products.

Historically, the CBE has indicated it is researching cryptocurrencies and monitoring developments in other countries to inform potential future regulations. In May 2023, it was announced that the CBE and FSRA had formed a Crypto Assets Task Force (CATF) to develop a national policy recommendations paper for regulating cryptocurrencies. This initiative aims to foster responsible innovation while maintaining financial stability. The CBE also commissioned a national consumer insights survey on crypto assets to better understand their use and perception within Eswatini.

A study commissioned by the CBE and conducted in partnership with the Eswatini Economic Policy Analysis and Research Centre (ESEPARC) revealed that a relatively small percentage of the population (8.6% of respondents) reported involvement with cryptocurrencies, primarily through exchanges based in neighboring countries. The study also highlighted limited understanding of cryptocurrencies among the public and instances of scams.

While there are no specific crypto-focused Anti-Money Laundering (AML) or Know Your Customer (KYC) regulations for crypto platforms, general financial laws and AML/CFT frameworks are in place in Eswatini. The Money Laundering and Financing of Terrorism (Prevention) (Amendment) Act 2016 is a key piece of legislation in this regard, and the Financial Intelligence Unit (FIU) Eswatini is the national agency for combating money laundering. It is important to note that the CBE has previously stated that because cryptocurrencies are virtually unregulated, there are no restrictions, disclosures, or regulatory compliance applicable to cryptocurrency transactions, implying a lack of specific AML/KYC for this sector.

The CBE is actively monitoring cryptocurrency-related transactions to understand consumer trends and inform potential regulatory actions. There has been a noted increase in the value of inflows from crypto exchanges, particularly those based in South Africa, in the first half of 2024.

Despite the lack of specific regulation and the warnings issued, there is no evidence of an outright ban on individuals participating in cryptocurrency trading. The emphasis has been on consumer caution and the ongoing efforts by regulatory bodies to understand and potentially develop a framework for these activities. Therefore, the status remains "Allowed-Unregulated," signifying that individuals can engage in such activities at their own risk, without a dedicated regulatory framework governing them.

3. Specific, Relevant Text Excerpts:

  • Central Bank of Eswatini (CBE) & Financial Services Regulatory Authority (FSRA) (March 2023): "Cryptocurrencies are not legal tender in Eswatini. Crypto investments or assets are currently unregulated in Eswatini; therefore, investors do not benefit from the legal protection associated with regulated instruments or products."
  • Central Bank of Eswatini (CBE) & Financial Services Regulatory Authority (FSRA) (March 2023): "Because cryptocurrencies and related investments are currently not regulated in Eswatini, dishonest actors can easily prey on inexperienced investors."
  • Tech In Africa (citing Freeman Law, April 2023): "Swaziland does not have any specific regulations for cryptocurrency. However, the CBE has advised financial institutions to exercise caution when dealing with cryptocurrency transactions."
  • Freeman Law (undated, accessed June 2024): "In his country, cryptocurrencies are not classified as legal tender, and cryptocurrencies are not specifically regulated. Nevertheless, the Central Bank of Eswatini (CBE) announced that it is researching cryptocurrency to learn how to “support innovation.”"
  • Freeman Law (undated, accessed June 2024): "Despite the government's optimism towards cryptocurrencies, the CBE issued warnings that cryptocurrencies are virtually unregulated. Consequently, there is a risk that investors will be left with no method of recovering financial losses because “there is no protection or legal recourse available from any institution including the Central Bank.”"
  • Inside Biz (May 2023): "The Central Bank of Eswatini is not resting on its laurels when it comes to educating, empowering, and protecting emaSwati on cryptocurrencies. The bank has revealed in its 2023 Governor's Annual Monetary Policy Statement that it is furthering its research on cryptocurrencies by collaborating with the Financial Services Regulatory Authority (FSRA) to form a Crypto Assets Task Force (CATF)."
  • Inside Biz (May 2023, quoting CBE Governor Dr Phil Mnisi): "The Governor disclosed that the CATF aims to produce a national policy recommendations paper that will provide comprehensive guidelines on how to regulate cryptocurrencies, establishing a secure and stable environment for investors and consumers."
  • Central Bank of Eswatini (Governor's Annual Monetary Policy Statement, August 2024): "The Bank wants to reiterate that crypto assets remain unregulated within Eswatini. It will continue to monitor developments in the crypto sector and enhance its collaborative efforts with relevant stakeholders to implement appropriate regulatory interventions."
  • Central Bank of Eswatini (Governor's Annual Monetary Policy Statement, August 2024): "The Central Bank is actively monitoring cryptocurrency-related transactions to better understand consumer trends and gather insights for potential regulatory actions. From January to June 2024, there has been a significant increase in the value of inflows from crypto exchanges, particularly those based in South Africa."
  • Bank for International Settlements (citing CBE Governor Phil Mnisi, August 2024): "Programme director, the Bank continues to research and monitor developments in cryptocurrencies. In this vein, the Bank commissioned a study to understand consumer interaction with cryptocurrencies, including their attitudes, awareness, and comprehension of the technology and its associated risks... The study revealed that the number of participants engaging on cryptocurrencies in the country is somewhat low, with only 8.6% of respondents reporting involvement primarily through exchanges based in neighbouring countries."

4. Direct, Accessible URL Links to Sources:

Web Sources (9)

Sources discovered via web search grounding

Search queries used (5)
  • Eswatini cryptocurrency regulation status
  • Central Bank of Eswatini cryptocurrency policy
  • Financial Services Regulatory Authority Eswatini crypto guidelines
  • Eswatini retail crypto trading laws
  • Eswatini AML KYC crypto requirements
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