Regulation of Virtual Assets in Zimbabwe

Introduction 

The Money Laundering and Proceeds of Crime (Virtual Asset Service Providers Registration) Regulations, 2026 (SI 99 of 2026), which were gazetted on 10 June 2026, establishes Zimbabwe’s first formal regulatory framework for Virtual Asset Service Providers (VASPs).  

Objective of the Regulations 

The framework is primarily designed to: 

  1. Formalise the virtual asset sector, which previously operated in a largely unregulated space 
  2. Prevent money laundering, terrorist financing and other financial crimes involving virtual assets 
  3. Improve transparency and consumer protection in digital asset transactions 
  4. Align Zimbabwe with international FATF AML/CFT standards 
  5. Enable regulatory oversight of crypto exchanges and related intermediaries 

Who is a Virtual Asset Service Provider? 

A Virtual Asset Service Provider includes any business that: 

  1. Exchanges virtual assets for fiat currency. 
  2. Facilitates crypto-to-crypto exchanges. 
  3. Transfers virtual assets on behalf of customers. 
  4. Safeguards or administers virtual assets. 
  5. Operates custodial wallet services. 
  6. Facilitates issuance or sale of virtual assets. 

Key Regulatory Requirements 

VASPs operating in Zimbabwe must comply with the following obligations: 

  1. Registration 
    1. Mandatory registration with the FIU before commencing operations 
    2. Renewal of registration as required 
    3. Payment of prescribed fees 
  2. AML/CFT Compliance 
    1. Implementation of internal AML/CFT policies and governance frameworks 
    2. Ongoing risk assessments of customers, products and transactions 
  3. Customer Due Diligence (KYC) 
    1. Verification of customer identities 
    2. Identification of beneficial ownership where applicable 
    3. Enhanced checks for high-risk clients and transactions 
  4. Transaction Monitoring 
    1. Continuous monitoring of transactions for suspicious or unusual activity 
    2. Systems to detect potential money laundering or illicit financial flows 
  5. Reporting Obligations 
    1. Mandatory reporting of suspicious transactions to the FIU 
    2. Cooperation with regulators and law enforcement authorities 
  6. Record Keeping 
    1. Maintenance of customer and transaction records for inspection and audit purposes 
    2. Transparency 
    3. Disclosure of regulatory status to customers 
    4. Clear communication of risks associated with virtual assets 

Impact 

  1. FIU registration is now a legal requirement 
  2. AML/KYC systems are mandatory operational infrastructure 
  3. Transaction monitoring and reporting obligations are enforceable duties 
  4. Non-compliance may result in penalties, suspension or loss of registration

Conclusion 

The regulations represent a significant step in formalizing Zimbabwe’s virtual asset ecosystem. Rather than banning or restricting cryptocurrency activity, they bring it within the country’s financial crime prevention framework by imposing mandatory registration and AML/CFT compliance obligations. This transition moves Virtual Asset Service Providers (VASPs) out of a regulatory grey area and positions them as supervised financial intermediaries for AML/CFT purposes. 

However, registration alone may not be sufficient for full legal operation. A registered VASP may still be required to obtain additional licenses from other regulators, including the Reserve Bank of Zimbabwe and the Securities and Exchange Commission of Zimbabwe, depending on the nature of its services and activities. 

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