Zimbabwe’s New Crypto Law Forces VASP Registration, AML Compliance

The statutory instrument also takes what Techzim described as a technology-neutral stance. It clarifies that decentralisation does not absolve businesses of accountability. Companies or organisations that can alter a smart contract, route funds, or set transaction fees meet the threshold of exercising control and must comply.

Compliance costs will hit local fintech startups hardest. Proponents argue that clear guidelines provide a predictable legal environment that could protect the domestic ecosystem from unexpected regulatory shutdowns, the Techzim report said. The legislation is part of Zimbabwe’s effort to stay off the Financial Action Task Force grey list, which increases scrutiny on cross-border transactions for non-compliant jurisdictions.

Zimbabwe joins a growing list of African nations regulating rather than banning crypto. Nigeria and South Africa have introduced similar licensing regimes for VASPs in recent years. The shift reflects a recognition that prohibition has not stopped crypto activity, only pushed it underground where oversight is impossible.

The regulations took effect upon gazetting. The next concrete test will come when FATF reviews Zimbabwe’s compliance in its next peer assessment.