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The Bank of Zambia (BoZ) has announced plans to introduce a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs) operating in the country, as part of efforts to strengthen oversight of the growing digital asset sector.
VASP is an entity or business that facilitates activities involving virtual assets, such as cryptocurrency transactions.
In a public notice issued by Assistant Director for Communications, Besnat Mwanza, on Monday, the central bank said the initiative was being undertaken in collaboration with other regulators and key stakeholders.
Mwanza noted that virtual asset technologies offer several potential benefits, including lower transaction costs, faster transfers of value and improved system resilience due to their decentralised nature.
However, she warned that the sector also presented risks such as price volatility, limited visibility of service providers and the possibility of misuse for money laundering, terrorist financing and proliferation financing.
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To support the development of the new regulatory framework, the Bank has directed all entities and individuals providing virtual or crypto asset services in Zambia to register with the central bank by March 27, 2026.
The registration requirement applies to both resident and non-resident entities that offer virtual asset services to individuals or businesses within Zambia, regardless of whether they have a physical presence in the country.
“The directive covers businesses involved in activities such as exchanging virtual assets for traditional currencies, exchanging one type of virtual asset for another, transferring virtual assets, safeguarding or administering virtual assets, and providing financial services related to the issuance or sale of virtual assets,” Mwanza said.
She said the registration exercise would help it establish a database of virtual asset service providers operating in Zambia and assess the scale and nature of their activities.
“The information collected will also support the development of a risk-based regulatory framework and strengthen monitoring of the sector in line with existing laws and international standards,” according to Mwanza.
The Bank clarified that the registration process was only a preliminary step and did not constitute a licence or official approval to operate as a virtual asset service provider.
It further announced that, effective March 30, 2026, financial institutions regulated by the BoZ would not be allowed to process transactions to or from virtual asset service providers that are not registered with the central bank.
The Bank said a full regulatory framework for the sector will be released in due course, after consultations with registered service providers.
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