Cryptocurrency Regulation in Eswatini (Formerly Swaziland) Prior to 2024

Legal Status and Central Bank’s Stance

As of 2023, the legal status of cryptocurrency in Eswatini was not clearly defined. There were no specific laws or regulations concerning the use of cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dogecoin, Tether, Cardano, USDT, XRP, Monero, or any other digital currencies. However, the Central Bank of Eswatini had issued several warnings about the potential risks associated with cryptocurrencies. These warnings did not amount to outright bans but indicated a level of caution towards their use in the country​​.

Absence of Penalties and Regulatory Framework

In the absence of specific cryptocurrency laws in Eswatini, there were also no related penalties. However, this did not exempt individuals or businesses from adhering to existing laws regarding financial transactions, such as anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Violation of these existing financial laws could lead to severe penalties. The Central Bank of Eswatini had issued statements indicating that it did not regulate or oversee cryptocurrency, but was studying the phenomenon and considering the possibility of future regulations​​.

Cryptocurrency Usage and Trading

Due to the lack of regulation and the novelty of cryptocurrency in Eswatini, it was difficult to determine which cryptocurrencies were most used in the country. However, Bitcoin, due to its popularity and high market cap, was likely the most widely used, along with other popular digital currencies. There were no laws or regulations prohibiting the trading of cryptocurrency in Eswatini. Cryptocurrency exchanges and trading platforms could operate in the country, provided they complied with existing financial laws and regulations. Nevertheless, traders and investors were advised to exercise caution due to the increased risks associated with the unregulated nature of these digital assets​​​​.

Cryptocurrency Gambling

The legality of cryptocurrency gambling in Eswatini was unclear, with no specific laws or regulations addressing this issue. However, all forms of gambling were regulated in the country, suggesting that existing gambling laws might apply to gambling with cryptocurrency. Participants in such activities were advised to proceed with caution and seek legal advice if necessary​​.

Conclusion

As of 2023, Eswatini’s approach to cryptocurrency regulation was characterized by a lack of specific legislation and a cautious stance from the Central Bank. The absence of a definitive legal framework created an environment of uncertainty for the use and trading of digital currencies. Individuals and businesses interested in cryptocurrency were encouraged to stay informed about potential changes in the legal landscape and to comply with existing financial transaction laws. The possibility of future regulation indicated a growing awareness and potential integration of cryptocurrencies into Eswatini’s financial system​​.