Reserve Bank of Malawi 'Africa' - Crypto Assets Aren't A legal Tender, Trading Solely At User's Risk.

Reserve Bank of Malawi 'Africa' - Crypto Assets Aren't A legal Tender, Trading Solely At User's Risk.

2019-05-28 | Selina Mathew

Reserve Bank of Malawi 'Africa' - Crypto Assets Aren't A legal Tender, Trading Solely At User's Risk.

In line with a recent report by native news media agency named ‘Nyasa Times’, the central bank of Malawi stated that 'crypto assets' aren’t legal within the country and that the institution is against crypto-related activities.

RBM - The Reserve Bank of Malawi has declared that cryptocurrencies aren’t  recognized tender in Malawi and don't represent a substitute to the Malawi kwacha [MWK], the native standard fiat currency of the southeast Africa country.

The bank has warned its individuals that the govt isn't aiming to acknowledge investments in crypto-currencies like Bitcoin [BTC], in line with an announcement from RBM Governor named ‘Dalitso Kabambe’ earlier on Monday.

The official reportedly claimed that the bank has suggested the general public that all crypto-related activities like buying, trading or using any types of crypto assets as payment are solely at the individual’s own risk. Kabambe stressed that there's no establishment within the government that oversees crypto trading and regulates the parties concerned within the trade.

In this regard, the governor named major risks related to crypto investments, together with Money laundering and security breaches, in addition as vulnerabilities to 'hacks' and illicit activities.

Kabambe additionally noted that there's no crypto exchange that has been registered within the country, a undeniable fact that represents another risk factors for the native individuals that wish to invest in crypto assets.

As per the report, the RBM’s official statement has followed a growing interest from the country’s residents on the matter, together with the enlarged number of cryptocurrency related enquiries to the bank.

While on the another hand, Kabambe aforesaid that the RBM is conscious of the potential of 'blockchain', the underlying technology of most cryptocurrencies that has specific use cases within several of industries. He said that the bank’s will continue tracking global developments associated with the technology, and reserves the right to review its stance and regulative position if considers it to be necessary.

Also earlier this year, the South African bank 'published' a consultation paper revealing that the native govt. has no plans to ban either crypto 'trading' or crypto related payments at the time.

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