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- Zambia partnered with “DLTledgers” to develop a regulatory framework to ensure transparency and accountability in the crypto market.
- How this new addition will affect investors in Zambia is a topic of Discussion.
Zambia has joined the long list of countries that are taking measures to regulate the use of cryptocurrency. In recent years, the African nation has experienced a significant increase in the use of cryptocurrencies, but it has also become more susceptible to the risks associated with the technology. The Zambian government has launched an experiment to regulate cryptocurrency using technology to counter these risks.
The problem with Cryptocurrency in Zambia
Cryptocurrencies offer many benefits, such as fast and low-cost transactions, borderless payments, and decentralization. However, these benefits come with significant risks. Cryptocurrencies are not backed by any central authority, which makes them susceptible to fraud, money laundering, and the financing of terrorism.
Zambia is not immune to these risks, and as the use of cryptocurrencies continues to grow, the government has become increasingly concerned about the potential threats to national security.
Zambia’s Experiment with Technology to Regulate Cryptocurrency
To address the challenges of cryptocurrency regulation, the Zambian government has partnered with a blockchain startup called DLTLedgers. The partnership aims to use blockchain technology to develop a regulatory framework for cryptocurrencies to ensure market transparency and accountability.
DLTLedgers is a blockchain startup specializing in developing solutions for supply chain management, trade finance, and digital identity. The company has a track record of implementing blockchain-based solutions for governments and corporations, making it an ideal partner for the Zambian government’s experiment.
The partnership aims to create a Blockchain-based platform allowing the government to monitor and regulate cryptocurrency transactions. The platform will enable the government to track the movement of cryptocurrencies and prevent illegal activities, such as money laundering and terrorism financing.
The platform will also enable the government to collect taxes from cryptocurrency transactions.
Currently, the Zambian government does not collect taxes on cryptocurrency transactions, which has led to a loss of revenue. However, with the new platform, the government can collect taxes and ensure that cryptocurrency transactions comply with the law.
What does this mean for the Future of cryptocurrency in Zambia?
The Zambian government’s experiment with technology to regulate cryptocurrency is a significant step towards creating a more secure and transparent market for digital assets. The use of blockchain technology will provide the government with the tools it needs to monitor and regulate the market effectively.
Moreover, blockchain technology will provide trust and transparency that is lacking in the current cryptocurrency market. Blockchain technology enables the creation of an immutable and transparent ledger, which ensures that all transactions are recorded and cannot be altered. This feature will give investors the confidence they need to invest in cryptocurrencies, knowing that the market is regulated and transparent.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
