Is Crypto Legal in Botswana?

Cryptocurrency is legal in Botswana under a comprehensive regulatory framework established by the Virtual Assets Act, which came into effect on January 24, 2025. This legislation regulates the sale and trade of virtual assets, licensing of virtual asset service providers, and issuers of initial token offerings (1). The Act defines virtual assets as digital representations of value that may be digitally traded or transferred and used for payment or investment purposes, though they are not recognized as legal tender by the Bank of Botswana.

The Bank of Botswana has clarified that while there was previously no specific legal framework pertaining to or proscribing investment in crypto assets, trading in cryptocurrency was akin to investment in intangible assets with attendant risks. The central bank emphasized that crypto assets do not exhibit the fundamental characteristics of money or currency, being a stable store of value, unit of account, and widely acceptable medium of exchange (2). The bank has consistently monitored developments in crypto assets due to their potential significant effect on its functions and the broader financial sector.

"There is no specific legal or regulatory framework pertaining to, or proscribing investment, in crypto assets, such as bitcoin in Botswana. Therefore, trading in bitcoin or similar decentralised technologies is akin to investment in any other intangible assets."

Under the Virtual Assets Act, any entity conducting virtual asset business must obtain a licence from the Non-Bank Financial Institutions Regulatory Authority and maintain a physical office in Botswana. Virtual asset service providers are required to comply with custody and protection of customer assets, prevention of market abuse, and anti-money laundering regulations (1). The central bank has flagged digital payment instruments as security risks, particularly concerning money laundering and terrorist financing, requiring enhanced market surveillance and cooperation with law enforcement to detect illegal operations.

Source:
https://botswanalaws.com/consolidated-statutes/principle-legislation/virtual-assets-act
https://www.bankofbotswana.bw/sites/default/files/press-release-files/PRESS%20RELEASE%20-%20Statement%20on%20Crypto%20Assets%20%20Participation%20and%20Regulation%20.pdf

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.