The Bank of Zambia has had its feathers ruffled and started a civil war on cryptocurrencies. At first, the bank stated that they do not view cryptocurrency as legal tender, which they do not have the power to officially declare without a trip to parliament – also meaning there is no need for anyone to go scampering off to their bitcoin wallets at popular operators to move funds just yet. However, days after this announcement they have then singled out one local company who offer cryptocurrency services as operating illegally.
Their anger is mainly directed at a company that could be overstepping their legal authority when it comes to accepting and dealing with cryptocurrency. This is an ongoing investigation and has resulted in the Bank of Zambia suggesting that cryptocurrency is dangerous for local people. Some people have pointed to the bank’s declining currency, the kwacha, as a reason for attacking alternative currencies that may be negatively impacting their own. Other reasons include a heightened chance of being a victim of cryptocurrency scams, increased ease of fraud and money laundering. This is not to say that their claims against other companies of legal wrongdoings are incorrect – those investigations are underway.
The bank’s stance of denouncing cryptocurrency may be considered extreme to some degree, yet, they do raise some important issues. They warn locals to proceed with cryptocurrency affairs with caution and take the approach that if it is too good to be true, it probably is. Whatever you think about their approach to cryptocurrency, on the whole, it is hard to decline some of their statements. Dealing with cryptocurrency should be done with caution and you should use official and trusted tools. So, how can you do that?
Use legit and reputable products
Cryptocurrency affairs rely on online protection and the safeguarding of your currencies. There are lots of hackers waiting in the wings to breach your crypto wallet or crypto exchange. Investors and traders should aim to stick with the most renowned and reputable providers of digital products and services, such as Luno and their bitcoin wallet. These companies have the best records at safeguarding data and preventing hacks.
Deal with licensed and transparent companies
In the same vein, as well as using trusted and legitimate cryptocurrency products, you must also stick with licensed and transparent companies. Using unknown companies may be contributing to illegal or even criminal activity.
Do your research
To be able to stay clear of scams, criminal operations and to protect your investments, you must be able to research what the best companies and the best products are. It is crucial that you take your time to find the best cryptocurrency wallets, and any other exchange service you may require. This may include reading reviews and speaking to seasoned experts.
The Bank of Zambia may be taking a tough approach on cryptocurrency, but their blanket statements are not justified when there are some legitimate and legal ways of handling cryptocurrencies. However, some of their advice concerning the need to protect yourself from criminal organisations and scams is valuable. Being aware of products, services and recent news stories will help you avoid making mistakes.