The Central Bank of Botswana (BOB) recognized in a recent statement, that local residents of Botswana, like their colleagues throughout the world, are involved in cryptocurrency trading as such it has been getting and replying to public and media inquiries on the topic, stating that the country lacks a clear legal or regulatory structure for crypto assets.
Residents who invest in cryptocurrencies, nevertheless, should be aware that they will have zero legal solutions if they lose money.
In addition, the statement includes some of the central bank’s insights from its monitoring of developments in the growing trading of crypto assets.
In a press release, the Bank of Botswana (BOB) stated that there is no particular legal or regulatory framework relating to, or prohibiting, investment in crypto assets such as bitcoin in Botswana.
As a result, trading in bitcoin or other decentralized technologies known as “cryptocurrency” is related to investing in any other intangible asset with negative repercussions such as a complete loss of value or the potential for technology abuse to the harm of shareholders.
Despite the fact that the BOB insists that cryptocurrency investors who lose money to fraudsters will have no legal backing.
The bank advises investors to make research on the registration of the business, as well as the nature of the business activity, including the method of generation and source of returns.
Meanwhile, the BOB’s position on the designation of cryptocurrencies as money is revealed in the statement. This comparison to cryptocurrencies, according to the central bank, is misleading because they lack crucial fundamental and complementary properties of money or currency, such as being a reliable financial asset.
The central bank’s statement also implies that some of the companies involved in crypto trading may be involved in pyramid schemes and frauds.
As a result, the BOB has once again cautioned bitcoin traders that they may be “engaging in criminal behavior.” According to the BOB, this indicates that these crypto investors could face prosecution and/or a considerable risk of financial and asset losses.
Cryptocurrencies also failed as a generally acknowledged unit of account or means of exchange, according to the BOB, because they lack state or central bank backing in terms of legal tender status, transfer, exchange, or worth.
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