According to Cointelegraph, the Central Bank of Botswana said that the country's crypto market is not yet mature and poses little risk to financial stability. However, the central bank recommends the formulation of regulatory measures to prevent potential risks in the future.
In its financial stability report, the central bank noted that the growing interconnectedness of the crypto market with the financial system could pose systemic risks. Despite this, the risks of crypto assets in the domestic market remain small, but improper behavior has raised regulatory concerns.
The central bank also noted that risks posed by financial technology were also smaller, but could rise as technological innovations penetrated the market. The central bank listed the use of digital payment tools for money laundering and terrorist financing as one of the top five national security risks.
To mitigate these risks, the central bank urged regulators to ensure that virtual asset service providers comply with anti-money laundering and counter-terrorist financing regulations, and recommended strengthening market surveillance and cooperation with law enforcement agencies.