Key takeaways
- Zimbabwe legalized its crypto sector under SI 99 of 2026, requiring VASPs to register with the RBZ.
- Crypto companies are subject to strict rules such as the FATF Travel Rule and a $500 annual fee to operate legally.
- Economists predict the new framework will protect fintech companies from sudden regulatory shutdowns.
Global compliance pressure
The Zimbabwean government has formalized the country’s cryptocurrency sector under a new regulatory framework aimed at combating money laundering and moving the digital assets sector out of the underground economy. The new gazetted legislation, published as Statutory Instrument 99 of 2026, places all crypto entities under the direct supervision of the anti-money laundering arm of the Reserve Bank of Zimbabwe (RBZ).
Under the scheme, commercial businesses that help users buy, sell, move or store digital assets must officially register as virtual asset service providers (VASPs). The mandate ends ambiguity that began in 2018 after the central bank ordered financial institutions to stop processing crypto-related transactions.
According to a report, the legislation is part of an effort to keep the country off the Financial Action Task Force (FATF) gray list.
“Much of SI99 is effectively Zimbabwe showing its homework to the world,” local technology publication Techzim reported following the Gazette publication, emphasizing that the regulations are designed to control financial crime rather than offering sovereign approval of cryptocurrencies as legal tender.
The regulations impose serious operational compliance requirements, modeled on those of traditional commercial banks. To operate legally, digital asset companies must now complete several structural requirements, including establishing a legally registered domestic subsidiary and paying an annual registration fee of $500. Companies must also implement the travel rule, while directors will be required to carry out background checks.
The statutory instrument also takes what is described as a technologically neutral stance towards emerging finance, clarifying that decentralization does not protect businesses from liability. This means that companies or organizations with the ability to modify a smart contract, route funds, or set transaction fees meet the threshold for exercising control and are therefore legally required to comply.
Although the legislation would impose high compliance costs on local fintech startups, its supporters argue that clear guidelines provide a predictable legal environment that could protect the nation’s fintech ecosystem from unexpected regulatory shutdowns.
