Is Crypto Legal in Botswana?

Botswana operates a prior-authorisation licensing regime rather than a registration regime: section 9 of the Virtual Assets Act, 2025 (Act No. 4 of 2025) prohibits unlicensed virtual asset business, section 10 governs the application for a licence, section 11 its issue, section 12 requires a licence holder to have a physical office in Botswana, section 15 empowers NBFIRA to suspend or revoke a licence, section 36 creates general offences and penalties and section 38 provides administrative sanctions.

The Virtual Assets Act, 2025 (Act No. 4 of 2025) is the overarching Botswana framework for virtual assets and virtual asset service providers, commencing 24 January 2025 under S.I. No. 9 of 2025 and repealing the Virtual Assets Act, 2022 by its section 40; it vests licensing and supervision in NBFIRA and maintains two licence types, the virtual asset service provider licence and the issuer of virtual token offerings licence recorded in the section 21 register.

No Virtual Assets Regulations, 2023 taking effect on 26 May 2023 exist in Botswana; the subsidiary-legislation powers are section 42 for rules and section 43 for regulations of the Virtual Assets Act, 2025, the only instrument made under that Act is the Virtual Assets Act (Date of Commencement) Order, 2025, S.I. No. 9 of 2025, and the sole regulations text NBFIRA publishes is headed 'Draft K. M 12.01.2022' over a blank 'Statutory Instrument No. _ of 2022' made under the repealed 2022 Act.

Operating a virtual asset exchange in or from Botswana requires a licence from NBFIRA: section 9 of the Virtual Assets Act, 2025 prohibits unlicensed virtual asset business, and NBFIRA's February 2026 notice revoking PAA Capital (Proprietary) Limited's licence names exchange, transfer, custody and brokerage among the regulated virtual asset services the entity may no longer offer.

Custody of client virtual assets is a licensed activity in Botswana: section 23 of the Virtual Assets Act, 2025 is headed 'Custody and protection of customer assets' and imposes obligations on licence holders, section 9 prohibits unlicensed virtual asset business, and NBFIRA's February 2026 PAA Capital notice lists custody among the regulated virtual asset services a revoked licensee may no longer offer.

Transferring virtual assets on behalf of another person is a licensed activity in Botswana: section 26 of the Virtual Assets Act, 2025 is headed 'Transfer of virtual assets' and carries the travel-rule obligation elaborated in NBFIRA's Guidance Note of 10 March 2025, which requires full originator and beneficiary information for transfers of BWP 10 000 or more by natural persons, and NBFIRA's February 2026 PAA Capital notice lists transfer among the regulated virtual asset services.

Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset (e.g., ICO/STO services).

Any other activity as prescribed by the Minister through regulations.

Section 12 of the Virtual Assets Act, 2025 (Act No. 4 of 2025) is headed 'Licence holder to have physical office in Botswana' and requires a licensed virtual asset service provider to maintain a physical office in the country; the requirement is new and had no counterpart in the repealed Virtual Assets Act, 2022.

Botswana has two licence types only, the virtual asset service provider licence and the issuer of virtual token offerings licence recorded in the section 21 register of the Virtual Assets Act, 2025, so no 'Principal VASP Licence' exists; section 27 of that Act is headed 'Minimum capital requirements' but NBFIRA has published no capital figure, and the P500 000 unimpaired-capital floor in the claim has no source in Botswana law.

The Virtual Assets Act, 2025 provides for a virtual asset service provider licence and an issuer of virtual token offerings licence and for no other licence type, so no 'Limited VASP Licence' exists in Botswana; section 27 is headed 'Minimum capital requirements' and carries no published figure, and the P200 000 unimpaired-capital floor in the claim has no source in Botswana law.

The Virtual Assets Act, 2022 imposes no minimum capital on Botswana virtual asset licensees and gives NBFIRA no express power to demand a security deposit or financial guarantee; section 11 conditions the grant of a licence on the applicant being a fit and proper person with adequate resources, infrastructure and staff of appropriate competence, with financial status or solvency weighed under section 11(2)(a). The only Botswana text setting a financial-resources floor is the Virtual Assets Regulations, 2022 that NBFIRA publishes headed "Draft K. M 12.01.2022" with a blank Statutory Instrument number, whose regulation 4(1) would require cash equal to one half of estimated gross operating costs for the next 12 months.

Botswana is actively tightening its AML/CFT financial sanctions regime to address identified weaknesses, indicating the framework is being reformed rather than remaining a stable cornerstone already fully aligned with FATF standards.

Robust Policies and Procedures: VASPs must implement comprehensive internal AML/CFT policies, procedures, and controls.

Section 14(1)(a) of Botswana's Financial Intelligence Act, 2022 requires every specified party, which includes a virtual asset service provider, to designate an anti-money laundering and counter-financing of terrorism compliance officer at management level who is in charge of internal programmes and procedures, record maintenance and the reporting of suspicious transactions, and who must be a fit and proper person; neither that Act, nor the Virtual Assets Act, 2022, nor the Financial Intelligence Regulations, 2022 makes the appointment subject to approval by NBFIRA.

Customer Due Diligence (CDD): Implementing strong CDD measures for all customers, including identifying and verifying the identity of natural and legal persons, and beneficial owners.

Enhanced Due Diligence (EDD): Applying EDD for higher-risk customers or transactions.

Botswana requires a 20-year retention period, not five years. Section 32 of the Financial Intelligence Act, 2022 obliges a specified party, for 20 years, to maintain all records on domestic and international transactions from the date a transaction is concluded, and to keep customer due diligence records, account files, business correspondence and the results of any analysis for 20 years after the termination of a business relationship or an occasional transaction; regulation 18(3)(a) of the Financial Intelligence Regulations, 2022 likewise fixes at least 20 years for records of reports filed with the Financial Intelligence Agency, and an investigatory authority may require longer retention in writing.

Section 38 of Botswana's Financial Intelligence Act, 2022 requires a specified party or accountable institution to report a suspicious transaction to the Financial Intelligence Agency within the prescribed period, whether the suspicion arises when a business relationship is established, during the relationship or on an occasional transaction; virtual asset service providers fall inside that regime because the Act defines virtual asset and virtual asset service provider by reference to the Virtual Assets Act, 2022, and the Agency is continued as a public office under section 4.

Sanctions Compliance: Screening customers and transactions against national and international sanctions lists.

Botswana has no virtual-asset-specific travel rule instrument. Regulation 26 of the Financial Intelligence Regulations, 2022 (Statutory Instrument No. 14 of 2022, dated 25 February 2022) requires cross-border wire transfers, and by regulation 26(2) domestic wire transfers, to carry the originator's name, account number or unique transaction reference number, address and national identity or customer identification number, the beneficiary's name, the beneficiary account number where one is used, and the source and purpose of funds; neither that regulation nor the Virtual Assets Act, 2022 extends those particulars to virtual asset transfers by name, and ESAAMLG rates Botswana Partially Compliant on FATF Recommendation 15.

While Botswana has established organizational structures and mandates, recent analysis identifies systemic challenges regarding institutional capacity, indicating that the organizational structure may not always be fully effective or consistently operate with well-defined lines of responsibility.

Risk Management: Robust frameworks for identifying, assessing, monitoring, and mitigating all relevant risks, including operational, financial, cyber, and legal risks.

Botswana's Parliament passed the Cybersecurity Bill, 2025 alongside the Digital Services Bill, 2025 on 14 August 2025 under a certificate of urgency moved by the Minister of Communications and Innovation, and the resulting Cybersecurity Act, cited as Act 21 of 2025, provides for structures to promote cybersecurity and capacity building, regulates cybersecurity activities and provides for the identification and declaration of critical information infrastructure and measures to protect it, with commencement fixed by notice. The Act is general cybersecurity legislation and forms no part of NBFIRA's virtual asset licensing requirements.

Cybersecurity: Comprehensive cybersecurity policies and measures to protect customer data and virtual assets.

Business continuity in Botswana is a codified legal requirement and governance imperative, mandating integration into risk management for continuous operation and recovery.

Measures to protect client assets and information.

Clear and transparent disclosure of fees, risks, and terms of service.

NBFIRA's published licence application process starts with submission of the documents listed under legal form in order to gain access to its Regulation and Supervision System portal, followed by a complete submission once all necessary documents are lodged and the non-refundable application fee is paid, a review by NBFIRA within 90 days of receipt of a complete application, and a decision either granting the licence or rejecting the application with reasons and a right of appeal; no pre-application consultation or engagement stage forms part of that published process or of section 10 of the Virtual Assets Act, 2022.

Preparation of Application: The applicant compiles a comprehensive application package, including:

Section 10(2)(a) of Botswana's Virtual Assets Act, 2022 requires a licence application to be made in such form and manner as may be prescribed, and section 36 vests the power to make regulations, and therefore to prescribe forms and fees, in the Minister rather than in NBFIRA. The Form 1 application form and the P5 000 application fee exist only in the Virtual Assets Regulations, 2022 that NBFIRA publishes headed "Draft K. M 12.01.2022" over a blank Statutory Instrument number and an enabling clause reading "Act No. ... of 2022", so no gazetted virtual asset application form is established for Botswana; in practice applications are lodged through NBFIRA's Regulation and Supervision System portal.

Botswana's Companies (Amendment) Act, 2025 is cited as Act 3 of 2025 and its principal provisions were brought into force on 24 January 2025 by Statutory Instrument No. 6 of 2025; under the amended regime non-exempt private companies must file audited financial statements with the Companies and Intellectual Property Authority within seven months of the balance sheet date, while exempt private companies, meaning those with total assets below P5 000 000 and annual turnover below P10 000 000 in the preceding financial year, file financial statements in a prescribed form without a full audit. No dormant-company audit requirement is established in the amendment, and section 10(2) of the Virtual Assets Act, 2022 lists no audited financial statements among the documents accompanying a virtual asset licence application.

Botswana sets no minimum capital for virtual asset licensees, and section 10(2) of the Virtual Assets Act, 2022 lists no proof of capital and no bank statements among the documents that must accompany an application; financial standing enters only through the fit and proper assessment in section 11(2)(a), which weighs the financial status or solvency of the person. The single Botswana text stating a financial-resources floor, cash equal to one half of the estimated gross operating costs of the business for the next 12 months, is regulation 4(1) of the Virtual Assets Regulations, 2022 that NBFIRA publishes as a draft with a blank Statutory Instrument number. The six licence classes and the capital floors of up to N$2.7 million under Namibia's Virtual Assets Act 10 of 2023 have no application in Botswana, which licenses only virtual asset service providers and issuers of initial token offerings.

Section 10(2)(c)(v) of Botswana's Virtual Assets Act, 2022 requires a licence application to be accompanied by the policies and measures the applicant will adopt to meet its obligations under that Act and under the Financial Intelligence Act, and section 14 of the Financial Intelligence Act, 2022 requires a specified party to implement risk-based internal programmes covering the designation of a compliance officer at management level, employee integrity standards, ongoing training, independent audit and customer acceptance policies.

Botswana is undertaking a decisive reset of its financial integrity systems to address weaknesses in anti-money laundering and counter-terrorism financing frameworks, indicating that the risk management framework is being actively changed and strengthened.

Fee schedule and client agreement templates.

Submission of Application: The complete application package is submitted to NBFIRA.

Section 10(4) of Botswana's Virtual Assets Act, 2022 allows NBFIRA to require an applicant to furnish additional information on 14 days' notice, and section 10(5) allows an applicant to withdraw on seven days' written notice; NBFIRA's published procedure gives it 90 days from receipt of a complete application to grant a licence or to reject the application with reasons and a right of appeal, and the fitness assessment under section 11 may draw on information obtained from a competent authority or comparable body. No interview stage appears in the Act or in NBFIRA's published process.

Licensing decisions for virtual asset businesses in Botswana rest with the Non-Bank Financial Institutions Regulatory Authority under the Virtual Assets Act, 2025 (Act No. 4 of 2025), which commenced on 24 January 2025 by S.I. No. 9 of 2025: section 10 governs application for a licence, section 11 the issue of a licence, section 12 requires a licence holder to maintain a physical office in Botswana, and section 15 empowers the Authority to suspend or revoke a licence. The Act creates two licence classes only, a virtual asset service provider licence and an issuer of virtual token offerings licence, both entered in the section 21 register.

Licence holders under Botswana's Virtual Assets Act, 2025 carry express continuing obligations: section 6 empowers the Regulatory Authority to appoint inspectors, section 23 governs custody and protection of customer assets, section 24 requires prevention of market abuse, section 26 governs transfers of virtual assets, section 32 sets professional conduct standards, section 34 requires notification of material change to business activities, and section 38 provides for administrative sanctions. NBFIRA additionally supervises virtual asset service providers for AML/CFT purposes and issued a Guidance Note on 10 March 2025 under section 4(1)(c) of that Act requiring suspicious transaction reports to the Financial Intelligence Agency through goAML within five working days.

The Virtual Assets Act, 2025 (Act No. 4 of 2025) is the overarching Botswana framework for virtual assets and virtual asset service providers, commencing 24 January 2025 under S.I. No. 9 of 2025 and repealing the Virtual Assets Act, 2022 by its section 40; it vests licensing and supervision in NBFIRA and maintains two licence types, the virtual asset service provider licence and the issuer of virtual token offerings licence recorded in the section 21 register.

Gazetted PDFs of primary Acts in Botswana are publicly accessible on platforms like Scribd, demonstrating that access does not exclusively require a specific legal database. These documents are primary legislation. However, their consistent availability on government legal resources or NBFIRA's website lacks specific evidence.

No Virtual Assets Regulations, 2023 taking effect on 26 May 2023 exist in Botswana; the subsidiary-legislation powers are section 42 for rules and section 43 for regulations of the Virtual Assets Act, 2025, the only instrument made under that Act is the Virtual Assets Act (Date of Commencement) Order, 2025, S.I. No. 9 of 2025, and the sole regulations text NBFIRA publishes is headed 'Draft K. M 12.01.2022' over a blank 'Statutory Instrument No. _ of 2022' made under the repealed 2022 Act.

No virtual-asset regulations were gazetted in Botswana on 26 May 2023. The instrument NBFIRA named alongside the repealed Virtual Assets Act, 2022 was the Virtual Assets Regulations, 2022, effective 25 February 2022, and the operative statute is now the Virtual Assets Act, 2025 (Act No. 4 of 2025), which commenced 24 January 2025 and confers the regulation-making power on the Minister by section 43.

Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Website: https://www.nbfira.org.bw/

This is the main regulatory body. Their website is the authoritative source for application forms, guidance, and updates.

Look for sections related to "Virtual Assets" or "Licensing Requirements" under "Regulatory Frameworks" or "Supervised Entities."

NBFIRA Virtual Assets Information Page (if available): (Specific direct link to VA section if found, otherwise the main page is the entry point). NBFIRA generally publishes directives and application documents for regulated entities.

Botswana's AML/CFT framework is set by the Financial Intelligence Act, 2022 (Act No. 2 of 2022), assented to and commenced on 25 February 2022, as amended by the Financial Intelligence (Amendment) Act, 2025 (Act No. 1 of 2025), which designates virtual asset service providers as financial institutions. The Act brings virtual asset service providers into the specified-party reporting regime and continues the Financial Intelligence Agency as a public office under section 4; NBFIRA is the AML/CFT supervisory authority for virtual asset service providers and the Agency receives suspicious transaction reports through goAML within five working days, while licensing itself is done by NBFIRA under the Virtual Assets Act, 2025.

Financial Intelligence Agency (FIA): https://www.fia.org.bw/ (For AML/CFT guidance and STR reporting)

shares or debentures of a company;

stocks, bonds, or other instruments creating or acknowledging indebtedness;

any right, warrant, or option in respect of a share, debenture, stock, bond, or other instrument;

Section 2 of Botswana's Virtual Assets Act, 2025 (Act No. 4 of 2025) defines a virtual asset as a digital representation of value that may be digitally traded or transferred and may be used for payment or investment purposes, and expressly excludes securities and other financial assets that are regulated under the Securities Act. Crypto instruments are therefore a distinct regulated class licensed by NBFIRA under the 2025 Act rather than securities, and the Act applies to business carried on into or from Botswana irrespective of the physical location from which it is conducted.

An investment of money (or other asset): Purchasers exchange value for the token.

In a common enterprise: The funds are pooled, and the success of the token's value or the project behind it is interdependent among investors.

With an expectation of profit: Purchasers expect to derive financial gain from their ownership of the token (e.g., through appreciation, dividends, staking rewards, governance rights leading to value).

Derived from the efforts of others: The expected profits or increase in value primarily come from the entrepreneurial or managerial efforts of the issuer or a third party (e.g., the development team, foundation, or management of the underlying project).

Investment Tokens (Security Tokens): Tokens explicitly designed to represent an ownership stake in an enterprise, a share in profits, voting rights in a company, or a claim on future revenues are almost certainly classified as securities. This includes most Initial Coin Offerings (ICOs) that promise future returns or equity-like participation.

Utility Tokens (with investment characteristics): While a "pure" utility token (solely providing access to a product or service) may not be a security, many utility tokens are marketed with investment potential, where their value is tied to the success of a platform built and managed by others. If the primary motive for purchase is speculative profit derived from the efforts of the issuer, it would likely be deemed a security.

NFTs (with investment characteristics): Non-Fungible Tokens that merely represent digital art or collectibles might not be securities. However, NFTs that confer rights to passive income, fractional ownership in a real-world asset managed by a third party, or are part of a broader investment scheme would likely be classified as securities.

Payment Tokens/Cryptocurrencies (e.g., Bitcoin, Litecoin): Generally, these are not considered securities if their primary function is as a medium of exchange or store of value, and their value is not derived from the managerial efforts of a central issuer or common enterprise in the same way. These would fall under the Virtual Assets Act for AML/CFT purposes but not as securities.

Registration/Prospectus Requirements: The issuer would generally be required to register the security with NBFIRA and issue a prospectus in accordance with the Securities Act. A prospectus must contain all material information necessary to enable investors to make an informed assessment of the assets and liabilities, financial position, profits and losses, and prospects of the issuer and the rights attaching to the securities.

Exemptions: The Securities Act provides for certain exemptions from prospectus requirements, such as offerings to sophisticated investors, private placements, or offerings to a limited number of persons. The issuer would need to ensure they strictly meet the criteria for any claimed exemption.

Licensing: Issuers, and any intermediaries involved in the offering, may need to be licensed by NBFIRA as securities dealers, brokers, or investment advisors, depending on their activities.

Exchange Licensing: Any platform facilitating the secondary trading of such tokens would likely need to be licensed by NBFIRA as a securities exchange or operate under an exemption.

Broker-Dealer Licensing: Entities facilitating the buying and selling of these tokens on behalf of clients (brokers) or trading for their own account (dealers) would need to be licensed by NBFIRA.

Market Conduct Rules: Standard market conduct rules for securities trading, including prohibitions against market manipulation, insider trading, and other illicit practices, would apply.

Secondary trading of virtual assets in Botswana requires a virtual asset service provider licence from NBFIRA under the Virtual Assets Act, 2025 (Act No. 4 of 2025), whose section 9 prohibits unlicensed virtual asset business and whose section 3 applies the Act to business carried on into or from Botswana irrespective of physical location; section 40 of that Act repealed the Virtual Assets Act, 2022 with effect from 24 January 2025. The AML/CFT duties of those providers, including customer due diligence and suspicious transaction reporting to the Financial Intelligence Agency through goAML within five working days, arise under the Financial Intelligence Act, 2022 (Act No. 2 of 2022) as amended in 2025, supervised by NBFIRA.

Issue directives to cease illegal activities.

Impose administrative penalties and fines.

Seek court orders for injunctions or disgorgement of illicit gains.

Cooperate with law enforcement for criminal prosecution in cases of fraud.

(Look for circulars, press releases, or guidance under 'Publications' or 'News').

This act can typically be found on the Attorney General's Chambers website for Botswana laws, or via legal databases. A direct government URL for the latest consolidated version may vary, but here's a common way to find legislation: https://www.botswanalaws.com/ (You would search for "Securities Act").

This is a newer act. You would similarly look for it on the Attorney General's Chambers site or legislative databases.

An example link to a legal database that often hosts these (though may require subscription): https://www.lexisnexis.com/ or similar regional legal platforms.

The Botswana Virtual Assets Act, 2022 carries a date of assent and a date of commencement of 25 February 2022 on the face of the official text, so it entered into force on assent rather than through Statutory Instrument No. 71 of 2022.

NBFIRA's public notice treats the Virtual Assets Regulations, 2022 as effective from 25 February 2022 alongside the Virtual Assets Act, 2022, but the only text NBFIRA publishes is headed 'Draft K. M 12.01.2022' over 'Statutory Instrument No. of 2022' and an enabling clause reading 'Act No. of 2022', so the published regulations remain a draft with no gazette number.

Again, found via legislative resources.

Botswana Communications Regulatory Authority (BOCRA): Responsible for regulating telecommunications and broadcasting services.

Ministry of Finance: Oversees financial regulations, including foreign exchange controls but lacks specific crypto guidance.

Botswana Medicines Regulatory Authority (BoMRA): Regulates pharmaceutical products, unrelated to digital assets.

Crypto gains taxation: No tax guidance has been issued by the Government of Botswana regarding capital gains from cryptocurrency transactions. The Revenue Authority does not specify treatment for virtual assets.

Botswana - Licensing Requirements for Professional Services

Trade License Application | Government of Botswana

DRTS: Botswana Department of Road Transport Services

Driving Licence Application | Government of Botswana

Vehicle Registration and Licencing | Government of Botswana

Ministry of Transport and Public Works | Government of Botswana

Issuance of Industrial Licence | Government of Botswana

Ministry Of Health & Wellness, Botswana

Botswana's proceeds-of-crime statute is the Proceeds and Instruments of Crime Act, Chapter 08:03, as amended by Act No. 28 of 2014 and Act No. 8 of 2018; the Proceeds of Serious Crime Act occupied that same Chapter 08:03 before repeal and no Chapter 08:06 exists, while money-laundering reporting and confiscation-support duties for virtual asset service providers run through the Financial Intelligence Act, 2022 (Act No. 2 of 2022).

Botswana's operative anti-money-laundering statute is the Financial Intelligence Act, 2022 (Act No. 2 of 2022, Chapter 08:07), assented and commenced on 25 February 2022 and amended by the Financial Intelligence (Amendment) Act, 2025 (Act No. 1 of 2025); it repealed the Financial Intelligence Act, 2019, which was Act No. 11 of 2019 and not No. 17, and it binds virtual asset service providers as 'specified parties' with customer due diligence under sections 16 and 20 and twenty-year record keeping under section 32.

AML/CFT guidance for Botswana virtual asset service providers is issued by NBFIRA under section 49(1)(c) of the Financial Intelligence Act, 2022, which requires supervisory authorities to establish and issue guidance notes in consultation with the Financial Intelligence Agency; the operative instrument is NBFIRA's guidance note 'Implementing AML/CFT Programmes' for non-bank financial institutions conducting virtual assets business, dated 10 March 2025.

NBFIRA is the designated Regulatory Authority for virtual asset service providers in Botswana under the Virtual Assets Act, and its constitutive statute is now the Non-Bank Financial Institutions Regulatory Authority Act, 2023 (Act No. 21 of 2023), which commenced on 15 January 2024 and replaced the 2006 Act published as Act No. 2 of 2007.

NBFIRA's AML/CFT guidance for virtual assets business is the guidance note 'Implementing AML/CFT Programmes', dated 10 March 2025 and issued under section 49(1)(c) of the Financial Intelligence Act, 2022 and section 4(1)(c) of the Virtual Assets Act, 2025; no NBFIRA virtual-asset AML/CFT guidance note bearing a November 2022 date is published.

National identity number (e.g., Omang for citizens), passport number, or other official identification document number.

Residential address (verified with utility bills, bank statements, or other official documents).

Source of funds and source of wealth (especially for high-risk customers or large transactions).

Purpose and intended nature of the business relationship.

Full legal name and trading name.

Registration number and legal form.

Principal place of business and, if different, operational address.

Names of directors, partners, or trustees.

Memorandum and Articles of Association (or similar constitutive documents).

Verification that the entity has not been dissolved, wound up, or struck off.

Identification of individuals authorized to act on behalf of the entity.

VASPs must identify and verify the identity of the beneficial owner(s) of customers, including for legal persons and legal arrangements.

Botswana sets its beneficial-ownership identification threshold at more than 10 per cent of shares, voting rights or other ownership interest, under the Financial Intelligence Regulations, 2022 (Statutory Instrument No. 14 of 2022), so the 25 per cent test used in other jurisdictions understates the identification duty owed by Botswana virtual asset service providers.

For trusts or other legal arrangements, identifying the settlors, trustees, protectors, beneficiaries, or any other person exercising ultimate effective control.

Monitoring the business relationship and transactions undertaken throughout the course of the relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, risk profile, and, where necessary, the source of funds.

Keeping customer information up-to-date and verifying it periodically.

Simplified Due Diligence (SDD): May be applied in low-risk scenarios (e.g., government entities, publicly listed companies) where the risk of money laundering or terrorist financing is minimal.

Enhanced Due Diligence (EDD): Required for higher-risk scenarios, including:

Politically Exposed Persons (PEPs) and their family members/close associates.

Customers from high-risk geographic locations (e.g., countries under FATF monitoring or sanctions).

Customers involved in high-risk activities or complex structures.

Transactions involving large amounts of virtual assets or unusual patterns.

Specific measures for EDD may include obtaining additional information on the customer, beneficial owner, source of funds/wealth, purpose of transactions, and senior management approval for establishing or continuing the relationship.

"Travel Rule" (FATF Recommendation 16, extended to VASPs by R.15):

Botswana sets its virtual-asset transfer threshold at BWP 10 000, not a USD or EUR 1 000 equivalent: at or above that amount a virtual asset service provider must obtain and transmit the originator's name, wallet address or account number and physical address or identity number together with the beneficiary's name and wallet address, and below it names and wallet addresses alone, under the Financial Intelligence Regulations, 2022 and NBFIRA's guidance note of 10 March 2025.

Originator Information: Name, account number (or unique transaction identifier), physical address, or national ID number, or customer identification number, or date and place of birth.

Beneficiary Information: Name, account number (or unique transaction identifier), and physical address, or national ID number, or customer identification number, or date and place of birth.

Botswana's Data Protection Act, 2024 (Act No. 18 of 2024, in force 14 January 2025) does not displace anti-money-laundering retention and disclosure duties: section 3 of the Financial Intelligence Act, 2022 gives that Act precedence over any conflicting law on combating financial offences, section 32 requires customer, transaction and business-relationship records to be kept for 20 years, and NBFIRA guidance note NBFIRA/RS/AML/CFT/GUD12, issued 11 June 2026, confirms that the Financial Intelligence Act supplies the legal basis for collecting, processing and retaining customer data and for reporting to the Financial Intelligence Agency.

Reporting Obligation: A VASP must immediately report any transaction (or attempted transaction) where they know, suspect, or have reasonable grounds to suspect that:

The transaction involves funds derived from criminal activity (money laundering).

The transaction is linked to terrorist financing.

The transaction is otherwise suspicious based on customer behavior, transaction patterns, or other red flags.

Botswana prohibits tipping-off under section 46(3) of the Financial Intelligence Act, 2022 (Act No. 2 of 2022): a person who knows or suspects that a suspicious transaction report is being made to the Financial Intelligence Agency shall not disclose information likely to prejudice a proposed investigation, and section 46(4) sets a penalty of up to P2 000 000 or 15 years' imprisonment.

Section 47 of the Financial Intelligence Act, 2022 (Act No. 2 of 2022) bars civil and criminal proceedings against any person who reports a suspicion in good faith, and section 60 grants immunity to the Director General, officers, specified parties and accountable institutions acting bona fide under the Act.

Customer Identification Records: All documents and information obtained during the CDD process (e.g., copies of ID, proof of address, beneficial ownership information).

Botswana's record-keeping duty for virtual asset businesses sits in sections 31 and 32 of the Financial Intelligence Act, 2022 (Act No. 2 of 2022), which require records of domestic and international transactions and of customer due diligence to be retained for 20 years; the Virtual Assets Act, 2025 (Act No. 4 of 2025) re-enacted the virtual assets regime and the Financial Intelligence (Amendment) Act, 2025 amended section 42 of the 2022 Act to designate virtual asset service providers as financial institutions.

Amount and value of the transaction.

Originator and beneficiary information (as per the Travel Rule).

Sending and receiving virtual asset addresses/identifiers.

Any other relevant information relating to the transaction.

Business Correspondence: Records of communications with customers.

Suspicious Transaction Reports: Copies of all STRs submitted to the FIA, along with any internal analyses or decisions made.

Botswana requires a 20-year retention period, not five years: section 32 of the Financial Intelligence Act, 2022 (Act No. 2 of 2022) requires records of domestic and international transactions to be kept for 20 years from the date the transaction is concluded, and regulation 18(3)(a) of the Financial Intelligence Regulations, 2022 (Statutory Instrument No. 14 of 2022) applies the same 20-year period to filed reports.

NBFIRA licenses and supervises virtual asset service providers under the Virtual Assets Act and is designated to regulate and supervise VASPs as specified parties under section 49(1)(b) of the Financial Intelligence Act, 2022, with power to conduct on-site examinations and to issue guidance notes in consultation with the Financial Intelligence Agency; NBFIRA is Botswana's non-bank financial services regulator rather than a prudential-only authority, and suspicious transaction reports run to the Financial Intelligence Agency.

The Financial Intelligence Agency, continued by the Financial Intelligence Act, 2022 (Act No. 2 of 2022), is Botswana's financial intelligence unit and receives suspicious transaction reports under section 38, which regulation 22(1) of Statutory Instrument No. 14 of 2022 requires to be filed as soon as possible and no later than five working days after the suspicion arose; under section 49 guidance notes are issued by supervisory authorities in consultation with the Agency.

The Virtual Assets Act, 2022 (Act No. 3 of 2022, supplement A.47 of the Government Gazette Extraordinary of 25 February 2022) was re-enacted with amendments as the Virtual Assets Act, 2025 (Act No. 4 of 2025), which the ESAAMLG follow-up report of September 2025 cites as the operative statute for VASP sanctions and beneficiary information; NBFIRA licenses virtual asset service providers and issuers of initial token offerings under that regime.

The Financial Intelligence Act, 2022 (Act No. 2 of 2022), assented and commenced on 25 February 2022, continues the Financial Intelligence Agency as the national centre for receiving, analysing and disseminating financial intelligence and repeals the earlier Financial Intelligence Act by section 64; virtual asset service providers are specified parties under it, and the Financial Intelligence (Amendment) Act, 2025 amended section 42 to designate them as financial institutions.

Botswana's operative anti-money-laundering statute is the Financial Intelligence Act, 2022 (Act No. 2 of 2022), assented and commenced 25 February 2022, whose section 64 repeals the earlier Act; the 2019 instrument was Act No. 11 of 2019 amending the Financial Intelligence Act No. 6 of 2009, and it no longer states the law.

The Proceeds and Instruments of Crime Act (Act No. 28 of 2014, commenced 1 January 2015 by Statutory Instrument No. 149 of 2014) deprives persons convicted of certain crimes of the benefits of those crimes, provides for deprivation of property suspected to be a proceed or instrument of crime, and covers money laundering and racketeering; it was amended by Act No. 8 of 2018 and by the Proceeds and Instruments of Crime (Amendment) Act, 2022 (Act No. 12 of 2022).

Botswana's confiscation statute is properly cited as the Proceeds and Instruments of Crime Act, Act No. 28 of 2014, which commenced on 1 January 2015 and has since been amended by Act No. 8 of 2018 and by the Proceeds and Instruments of Crime (Amendment) Act, 2022 (Act No. 12 of 2022).

Botswana implements United Nations Security Council designations through the Financial Intelligence (Implementation of United Nations Security Council Resolutions) Regulations, Statutory Instrument No. 13 of 2022, in force 25 February 2022, and the Counter-Terrorism (Implementation of United Nations Security Council Resolutions) Regulations, Statutory Instrument No. 9 of 2020, in force 27 January 2020, which impose listing, freezing and de-listing obligations by regulation rather than by directives issued by the Financial Intelligence Agency.

Virtual asset service providers are specified parties under the Financial Intelligence Act, 2022 and must apply the freezing and reporting obligations in the Financial Intelligence (Implementation of United Nations Security Council Resolutions) Regulations, Statutory Instrument No. 13 of 2022, and the Counter-Terrorism (Implementation of United Nations Security Council Resolutions) Regulations, Statutory Instrument No. 9 of 2020; a United Nations Targeted Financial Sanctions Bill, 2026, approved by Cabinet and announced on 18 May 2026, would add domestic designation and asset-freezing powers.

Botswana's targeted financial sanctions obligations rest on express subsidiary legislation rather than on regulations issued by the ministry responsible for foreign affairs: Statutory Instrument No. 13 of 2022 made under the Financial Intelligence Act and Statutory Instrument No. 9 of 2020 made under section 44 of the Counter-Terrorism Act give effect to United Nations Security Council resolutions, and a United Nations Targeted Financial Sanctions Bill, 2026 remains before Parliament.

Botswana's Financial Intelligence Act, 2022 (Act No. 2 of 2022) requires every specified party to conduct a risk assessment under section 13 and to implement programmes under section 14(1) covering a management-level compliance officer, employee integrity screening, ongoing training, an independent audit function and a customer acceptance policy with internal rules, processes, procedures and controls, with group-wide programmes under section 15(1); section 28 of the Virtual Assets Act, 2022 obliges a licence holder to maintain record-keeping measures for the accurate collection of information on the originator, founder and beneficial owner of a virtual asset business, together with data protection measures consistent with the Data Protection Act. Neither Act imposes a duty to screen against OFAC or European Union sanctions lists.

Section 27(1) of Botswana's Financial Intelligence Act, 2022 bars a specified party from establishing or maintaining a business relationship with a designated or nationally listed person, and section 27(3) exposes a breach to an administrative fine of up to P20 000 000 or suspension or revocation of licence. A suspicious transaction report goes to the Financial Intelligence Agency under section 38(1), and regulation 22(1) of the Financial Intelligence Regulations, 2022 (Statutory Instrument No. 14 of 2022) fixes the deadline at as soon as possible and not later than five working days. Freezing runs through the Minister's listing power in section 10 and the committee functions in section 9, which cover United Nations Security Council Resolutions 1267 of 1999, 1373 of 2001 and 1718 of 2006 and include determining the status and location of frozen assets and considering applications for unfreezing property frozen in error.

Enhanced due diligence on FATF-flagged jurisdictions is a statutory duty in Botswana rather than a supervisory expectation: section 21(1)(h) of the Financial Intelligence Act, 2022 requires a specified party to conduct enhanced due diligence in any case where the Financial Action Task Force has advised that measures should be taken in relation to a country because the country poses a threat to the international financial system, and section 21(1)(i) extends the duty to any country where the Financial Intelligence Agency has reasonable belief that financial offences are being carried on. Section 21(2) backs the duty with an administrative fine of up to P1 500 000, and section 21 also captures prominent influential persons, complex transactions with no apparent economic purpose and life insurance beneficiaries.

Administrative fines under Botswana's Financial Intelligence Act, 2022 are imposed by the supervisory authority and are capped section by section: P1 000 000 under section 13(7), P5 000 000 under section 14(4), P1 500 000 under section 21(2), P10 000 000 under section 25(2), P20 000 000 under section 26(3), P20 000 000 under section 27(3), P5 000 000 under section 38(6) for failure to report a suspicious transaction and P5 000 000 under section 46(1), with suspension or revocation of licence available alongside the fine. Section 33(1) of the Virtual Assets Act, 2022 separately empowers NBFIRA to order restitution, disgorgement of profits, an application to the Tribunal and payment of an administrative penalty as may be prescribed.

Individuals face imprisonment under both Botswana statutes. Section 31 of the Virtual Assets Act, 2022 carries up to five years with a fine of up to P250 000 for contravention of the Act, up to two years with a fine of up to P100 000 for misrepresentation or false statements and up to eight years with a fine of up to P1 000 000 for destruction of documents, and expressly makes directors and senior officials liable to the same penalty. The Financial Intelligence Act, 2022 provides up to 10 years with a fine of up to P5 000 000 under section 25(3) for anonymous accounts, up to 10 years with a fine of up to P500 000 under section 35(2) for destroying records, and up to 20 years with a fine of up to P3 000 000 under section 46(2) for failing to report or for continuing a transaction contrary to a direction of the Agency.

Confiscation and forfeiture in Botswana run under the Proceeds and Instruments of Crime Act, 2014, amended by the Proceeds and Instruments of Crime (Amendment) Act, 2022 (Act No. 12 of 2022) published at pages A.145 to A.147 of Government Gazette Extraordinary Vol. LX, No. 22 of 25 February 2022, and the Financial Intelligence Act, 2022 takes its definitions of money laundering, fund, property and serious offence from that Act. Section 9 of the Financial Intelligence Act, 2022 gives the committee power to determine the status and location of frozen assets and to consider applications for unfreezing property frozen in error.

Section 13 of Botswana's Virtual Assets Act, 2022 allows the Regulatory Authority to suspend or revoke a licence at any time on eight grounds, including that the holder is no longer fit and proper, has contravened a provision of the Act, supplied false information, or that a competent authority has so requested. Section 14 requires 21 days' written notice of the intention with reasons and gives the holder 14 days to respond, and section 15 permits suspension without notice where the Regulatory Authority considers that an immediate suspension is necessary to protect the public. Section 2 defines the Regulatory Authority as the Non-Bank Financial Institutions Regulatory Authority.

exchange between virtual assets and fiat currencies;

exchange between one or more forms of virtual assets;

safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and

participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.

Establish and maintain policies, controls, and procedures to ensure compliance with the Travel Rule.

Botswana's virtual-asset travel rule rests on section 26 of the Virtual Assets Act, 2025 (Act No. 4 of 2025) and on NBFIRA's Guidance Note of 10 March 2025, which requires a licensed VASP to obtain the originator's name, the originator's virtual asset wallet address or account number or a unique transaction reference number, and the originator's physical address, national identity number, customer identification number or date and place of birth, together with the beneficiary's name and the beneficiary's wallet address or account number, with the full originator dataset required for transfers by a natural person of BWP 10 000 or more.

NBFIRA's AML/CFT Guidance Note of 10 March 2025 requires a Botswana VASP both to transmit the collected originator and beneficiary information immediately and securely to the beneficiary VASP or other institution required by law, and separately to store that information in a form that cannot be altered and keep it readily available to the Regulatory Authority on request; the two duties are cumulative and neither substitutes for the other.

NBFIRA's AML/CFT Guidance Note of 10 March 2025 requires a Botswana VASP to transmit originator and beneficiary information immediately and securely to the beneficiary VASP and to store the collected information in a manner that cannot be altered, so that it remains readily available to the Regulatory Authority on request; the standard is unalterable storage rather than a general systems-capability expectation.

Originator’s account number used to process the transaction (or unique transaction identifier)

Originator’s physical address or national identification number or customer identification number (i.e., not a publicly available identifier) or date and place of birth

Beneficiary’s account number used to process the transaction (or unique transaction identifier)

Botswana's Virtual Assets Act, 2025 (Act No. 4 of 2025) confers administrative sanctioning power on NBFIRA at section 38, carrying forward section 33 of the repealed Virtual Assets Act, 2022, under which the Regulatory Authority could order restitution, order disgorgement of profits, apply to a tribunal for customer protection and impose administrative penalties in prescribed amounts, enforceable as orders of the High Court; the penalty amounts are left to regulations and no such amounts have been gazetted.

NBFIRA may suspend or revoke a virtual asset licence under sections 15 to 17 of Botswana's Virtual Assets Act, 2025 (Act No. 4 of 2025), which re-enact sections 13 to 15 of the repealed 2022 Act; the Regulatory Authority must ordinarily give notice of its intention to suspend or revoke, but may suspend without notice where it considers immediate suspension necessary to protect the public, and may revoke immediately in the public interest.

Criminal Penalties: For serious breaches, especially those related to money laundering or terrorist financing, individuals and corporate officers can face:

Imprisonment: Terms of imprisonment for individuals found guilty of offenses under the AML/CFT framework.

The 2017 Mutual Evaluation Report underscores Botswana's foundational AML/CFT measures but identifies gaps in virtual asset regulation and enhanced due diligence for high-risk customers. https://www.fatf-gafi.org/en/publications/Mutualevaluations/Mer-botswana-2017.html

The 2023 Follow‑Up Review Report notes significant advancements in regulatory coverage, particularly the expansion of AML/CFT obligations to virtual asset service providers (VASPs) and improvements in cross-border information sharing. https://www.fatf-gafi.org/en/publications/Mutualevaluations/FUR-Botswana-2023.html

The guide provides actionable insights for entities operating in Botswana's financial sector, emphasizing the importance of tailored risk assessments under the new virtual assets legislation. https://blog.voveid.com/aml-compliance-in-botswana-a-2025-guide-for-regulated-businesses/

This resource outlines the procedural nuances of conducting thorough sanctions checks in line with FATF advisories, crucial for mitigating reputational risks. https://www.anqacompliance.com/botswana-aml-sanctions-compliance/

The website serves as a centralized hub for regulatory updates and technical guidance documents pertinent to financial institutions operating within Botswana's jurisdiction. https://www.bankofbotswana.bw/content/countering-financial-crime

Zendetect’s assessment emphasizes the necessity of leveraging advanced analytics to detect unusual transaction patterns efficiently. https://www.zendetect.com/countries/botswana

The NBFIRA’s note clarifies expectations regarding Know Your Customer (KYC) procedures and the mandatory filing of Suspicious Transaction Reports (STRs) for VASPs within Botswana. https://www.nbfira.org.bw/wp-content/uploads/2025/03/Guidance-Note-for-VASPs-Other-on-Implementation-of-AMLCFT-Programmes-.pdf

This academic resource provides a structured analysis of regulatory compliance mechanisms applicable to banking institutions under Botswana law. https://www.studocu.com/row/document/university-of-botswana/negotiable-instruments-and-banking-law/regulation-and-supervision-of-banks-in-botswana/126610421

The study identifies procedural deficiencies that could be exploited by illicit actors, recommending targeted policy interventions to fortify Botswana’s anti-money laundering defenses. https://www.emerald.com/jmlc/article/28/7/1/1267436/An-analysis-of-the-challenges-in-combatting-money-laundering-within-Bureaux-de-Change-establishments-in-Botswana

Enhanced joint efforts aim to prevent illicit funds from permeating through gaming platforms, aligning with broader national security objectives. https://focusgn.com/africa/botswana-gambling-authority-fia-deepen-cooperation-on-aml-oversight

Botswana's operative virtual-asset statute is the Virtual Assets Act, 2025 (Act No. 4 of 2025), which commenced on 24 January 2025 by Statutory Instrument No. 9 of 2025 and whose section 40 repeals the Virtual Assets Act, 2022 (Act No. 3 of 2022); the repealed 2022 Act was assented to and commenced on 25 February 2022 and was never numbered Act No. 19 of 2022, nor gazetted on 27 May 2022.

Non-Bank Financial Institutions Regulatory Authority (NBFIRA)

The prohibition on carrying on virtual asset business without a licence is section 9 of Botswana's Virtual Assets Act, 2025 (Act No. 4 of 2025), re-enacting section 9 of the repealed 2022 Act, and it requires a virtual asset service provider licence or an issuer of initial token offerings licence; section 5 of both Acts is instead the Regulatory Authority's power to request information.

Botswana's Virtual Assets Act places its interpretation provisions in section 2, not section 3, section 3 being the application provision; the repealed Virtual Assets Act, 2022 defined a virtual asset service provider as a person who under an agreement, as part of a business, undertakes a virtual asset service on behalf of another person, or who is a dealer or is willing to deal on own account by buying and selling virtual assets at prices set by that person, and the Virtual Assets Act, 2025 re-enacted that definition to cure the drafting deficiency ESAAMLG identified against the FATF standard.

Sections 6-10: Outline the application process for a license, including requirements such as:

Application in the prescribed form.

Provision of information on the applicant's business, management, financial resources, operational plan, internal controls, risk management systems, and compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) obligations.

Section 11 of Botswana's Virtual Assets Act requires the Regulatory Authority to be satisfied that a licence applicant is a fit and proper person, and that a natural person applicant is resident in Botswana, before issuing a virtual asset service provider or issuer of initial token offerings licence, and the fit-and-proper test also grounds revocation of a licence already granted.

Part III of Botswana's Virtual Assets Act, 2022 was headed Licensing of Virtual Asset Businesses and ran from section 8 to section 19, not from section 5 to section 13; under the Virtual Assets Act, 2025 the equivalent Part III runs from section 8 to section 21, sections 5 to 7 sitting in Part II on the functions and powers of the Regulatory Authority.

Section 15 of Botswana's Virtual Assets Act, 2022 dealt with suspension or revocation of a licence without notice and imposed no systems-of-control duty; the client-asset provision was section 20, re-enacted as section 23 of the Virtual Assets Act, 2025, which requires a licence holder holding customer virtual assets to maintain in its custody a sufficient amount of each type of virtual asset to meet its obligations to the customer and to meet all prescribed financial requirements, and provides that those assets are held for the customer, are not the property of the licence holder and are not subject to the claims of the licence holder's creditors.

Section 18 of Botswana's Virtual Assets Act, 2022 concerned information on the assignment and transfer of a licence or beneficial ownership and conferred no directive or practice-note power; NBFIRA's instrument-making authority comes from section 4, which lets the Regulatory Authority develop rules, guidance and codes of practice and publish notices, guidelines, bulletins and policies, while the power to make regulations vests in the Minister under section 36 of the 2022 Act and section 43 of the Virtual Assets Act, 2025, which also adds a separate rules power at section 42.

Botswana's Virtual Assets Act, 2022 had no section 15(1)(d) and imposed no adequate-financial-resources duty in section 15, whose subsection (1) ran only to paragraph (c) and dealt with suspension or revocation without notice; the financial obligation on a custodian was section 20(1)(b), requiring a licence holder to meet all financial requirements as may be prescribed, and the Virtual Assets Act, 2025 adds a dedicated minimum capital requirements provision at section 27. The word insurance appears nowhere in the 2022 Act.

Section 18: NBFIRA has the power to issue directives. It could, in the future, introduce requirements for professional indemnity insurance or specific bonding for VASPs handling client assets, especially given the risks associated with virtual assets.

Botswana's Virtual Assets Act, 2022 has no section 15(1)(a) safeguarding duty and the quoted wording about theft, loss or damage appears nowhere in it; the safeguarding obligations are section 20, requiring a licence holder with custody of customer virtual assets to maintain a sufficient amount of each type of virtual asset to meet its obligations to the customer, and section 26, requiring a licence holder to ensure that appropriate measures are put into place for the protection of customers' virtual assets. Those provisions become sections 23 and 32 in the Virtual Assets Act, 2025.

Botswana's Virtual Assets Act, 2022 contains no information-technology or cybersecurity provision and the words cyber and information technology appear nowhere in its text, section 15 being the provision on suspension or revocation of a licence without notice; the quoted robust information technology framework, cybersecurity and operational resilience wording matches Namibia's Cyber Security Rules made under the Virtual Assets Act, 2023 and published in Government Gazette 8200, Government Notice 516 of 1 September 2023.

Section 3 (Definitions): A "virtual asset service provider" is any person who, as a business, performs one or more of several enumerated activities, including "custody or administration of virtual assets or instruments enabling control over virtual assets."

NBFIRA Directives, Regulations, and Guidelines: NBFIRA is mandated by the Act to develop and issue subsidiary legislation, directives, and guidelines to fully implement its provisions. These future instruments are expected to provide the granular detail for aspects like:

Botswana's Cybersecurity Bill, 2025 was a bill and imposed nothing; it was enacted as the Cybersecurity Act, 2025 (Act No. 21 of 2025), whose commencement is by ministerial notice, and it creates no virtual-asset custody, client-asset or disaster-recovery obligation on virtual asset service providers, whose custody duties come from section 23 of the Virtual Assets Act, 2025 and whose only Botswana-specific technology guidance is NBFIRA's AML/CFT Guidance Note of 10 March 2025.

Detailed operational requirements (e.g., specific security measures for private keys, possibly including cold storage ratios).

Further clarification on client asset protection and segregation.

Specific capital adequacy or insurance requirements.

Public Consultations: NBFIRA is likely to engage in public consultations as it develops these detailed regulations, allowing industry stakeholders to provide input.

NBFIRA publishes named public notices against virtual asset service providers in Botswana, comprising unlicensed-provider warnings against YellowOcta.com Trading Company on 13 September 2022, Berry Crypto Trading Platform on 12 December 2022 and FS Global Properties Limited Botswana on 13 March 2023, and a February 2026 notice revoking the licence of PAA Capital (Proprietary) Limited under section 15(b) of the Virtual Assets Act, 2025; none of these notices states a monetary penalty.

Botswana's operative virtual-asset statute is the Virtual Assets Act, 2025 (Act No. 4 of 2025), which commenced on 24 January 2025 under the Virtual Assets Act (Date of Commencement) Order, 2025, S.I. No. 9 of 2025, and whose section 40 repeals the Virtual Assets Act, 2022 (Act No. 3 of 2022); section 9 prohibits unlicensed virtual asset business, section 11 governs the issue of licences, and NBFIRA is the Regulatory Authority exercising supervisory and enforcement powers under the Act.

NBFIRA is the Regulatory Authority for virtual asset service providers under the Virtual Assets Act, 2025 (Act No. 4 of 2025), and it has issued named public warnings against unlicensed providers, including YellowOcta.com Trading Company on 13 September 2022, Berry Crypto Trading Platform on 12 December 2022 and FS Global Properties Limited Botswana on 13 March 2023, and it revoked PAA Capital (Proprietary) Limited's licence in February 2026 under section 15(b) of that Act.

The Bank of Botswana declared on 10 November 2021 that crypto assets carry no backing by the state or the central bank as to legal tender status, transferability, exchange or value, and that the public has no recourse to the Bank for fraud, misconduct or losses arising from crypto-asset business; licensing and supervision of virtual asset service providers rest with NBFIRA under the Virtual Assets Act, 2025 (Act No. 4 of 2025), not with the Bank of Botswana.

The Financial Intelligence Agency is Botswana's financial intelligence unit under the Financial Intelligence Act, 2022 (Act No. 2 of 2022), receiving suspicious transaction reports through the goAML platform within five working days and licensing nobody, while NBFIRA is the AML/CFT supervisory authority for virtual asset service providers; ESAAMLG's September 2025 follow-up report records that Botswana has not yet identified and assessed the money-laundering and terrorist-financing risks of virtual asset activities and VASPs, leaving Recommendation 15 rated partially compliant.

Botswana's dated virtual-asset public statements are the Bank of Botswana press release of 10 November 2021, NBFIRA's licensing public notice of 20 June 2022, NBFIRA's named unlicensed-provider notices of 13 September 2022, 12 December 2022 and 13 March 2023, and NBFIRA's February 2026 revocation notice against PAA Capital (Proprietary) Limited; NBFIRA published no virtual-asset advisory in July 2021.

Botswana's virtual-asset legislation is enacted and in force, not a pending Bill: the Virtual Assets Act, 2022 (Act No. 3 of 2022) was assented to and commenced on 25 February 2022, and it was repealed by section 40 of the Virtual Assets Act, 2025 (Act No. 4 of 2025), which Parliament passed in December 2024 and which commenced on 24 January 2025 under S.I. No. 9 of 2025.

Botswana's AML/CFT and targeted-financial-sanctions obligations rest on the Financial Intelligence Act, 2022 (Act No. 2 of 2022), assented to and commenced on 25 February 2022, whose Part III and section 9 give effect to United Nations Security Council Resolutions on terrorism and proliferation financing, with section 25(3) carrying a fine of up to P5 000 000 or imprisonment of up to 10 years and section 26(3) an administrative fine of up to P20 000 000; the Financial Intelligence (Amendment) Act, 2025 (Act No. 1 of 2025) then amended section 42 to designate virtual asset service providers as financial institutions.