RESEARCH: Zambia Cryptocurrency and Digital Asset Status Regulatory Requirements

Executive Summary

As of 2025-2026, cryptocurrency and digital assets in Zambia are not explicitly legalized or prohibited under a specific regulatory framework. The primary regulator for financial activities is the Bank of Zambia (BoZ), which oversees banking and monetary policy but has yet to issue comprehensive guidelines on cryptocurrencies. No entities have been officially licensed to operate as crypto exchanges or service providers. Practically, cryptocurrency transactions occur in a quasi-legal gray area, with limited official oversight and no clear path for formal licensing. The absence of specific legislation creates uncertainty for businesses and individuals engaging in digital asset activities.

Regulatory Framework

The primary regulatory body overseeing financial matters in Zambia is the Bank of Zambia (BoZ), established under the Banking Act of 2008 (Banking Act, 2008). The BoZ's mandate includes issuing currency, maintaining monetary stability, and regulating financial institutions. However, there is no dedicated legislation specifically addressing cryptocurrencies or digital assets. Zambia does not appear in the FATF (Financial Action Task Force) list of jurisdictions with specific crypto-related recommendations, indicating a lack of formal international alignment on this issue.

Licensing Requirements

Currently, no specific licensing framework exists for cryptocurrency exchanges or related service providers in Zambia. The Bank of Zambia has not published any guidelines or regulations that would require entities to obtain a license for operating within the digital asset space. Consequently, there are no capital requirements, application processes, or timelines outlined for such activities. As of now, no entities have been licensed by the BoZ to engage in crypto-related services (Bank of Zambia).

AML/KYC Requirements

While the Bank of Zambia enforces anti-money laundering (AML) and counter-terrorism financing (CFT) regulations under the Financial Intelligence Unit (FIU) established by the Proceeds of Crime Act, 2014 (Proceeds of Crime Act, 2014), these requirements are not explicitly extended to cryptocurrency transactions. The AML/KYC obligations typically apply to traditional financial institutions and may indirectly affect crypto businesses through correspondent banking relationships or if they fall under the definition of a "financial institution." However, specific directives for digital asset service providers remain absent.

Enforcement Actions

There have been no reported enforcement actions targeting cryptocurrency activities in Zambia as of 2025-2026. The Bank of Zambia and other regulatory bodies have not issued fines, arrests, or public notices related to non-compliance with crypto-specific regulations. This lack of enforcement reflects the current regulatory silence on digital assets.

Tax Treatment

Zambia's tax authorities have not issued explicit guidance on the taxation of cryptocurrency gains. The Income Tax Act, 1967 (Income Tax Act, 1967) and the Value Added Tax (VAT) Act, 2015 (VAT Act, 2015) do not specifically address virtual assets. Consequently, businesses and individuals are left to interpret how existing tax rules may apply to cryptocurrency transactions, creating a high degree of uncertainty.

Key Gaps & Risks

The primary gaps in Zambia's regulatory framework for cryptocurrencies include the absence of specific legislation, licensing requirements, and clear AML/KYC obligations tailored to digital assets. This lack of formal oversight exposes businesses and consumers to risks such as financial instability, potential market manipulation, and difficulty in resolving disputes. The practical reality is that entities operating in the crypto space must navigate a largely unregulated environment, which could change abruptly if regulatory clarity emerges.

Sources

• Bank of Zambia
• Research (disambiguation)
• Proceeds of Crime Act, 2014
• Income Tax Act, 1967
• VAT Act, 2015