Legislative Landscape for Cryptocurrencies in Mozambique Prior to 2024

Mozambique’s approach to cryptocurrencies before 2024 was characterized by a lack of specific legislation, an unregulated status, and cautionary statements from the government. This scenario placed cryptocurrencies in a unique position within the Mozambican financial landscape, where they were neither officially sanctioned nor expressly prohibited.

Central Bank’s Initial Stance

The Central Bank of Mozambique issued a statement in January 2018, which marked the beginning of the country’s official discourse on cryptocurrencies. In this statement, the Bank highlighted the use of cryptocurrency in illicit activities and advised citizens to steer clear of these digital assets. The Bank clarified that it neither regulates nor monitors transactions using Bitcoin, or other cryptocurrencies, as they are not issued by any central authority and have no legal standing in Mozambique. This announcement set the tone for the subsequent regulatory landscape, emphasizing caution and the unregulated nature of these digital currencies​

​Government’s Position on Cryptocurrency

The Mozambican government, as of the years leading up to 2024, had not enacted any laws specifically governing the use of cryptocurrencies. This lack of legislation rendered cryptocurrencies neither legal nor illegal in the country. While the government warned citizens about the potential risks involved in cryptocurrency transactions, such as volatility, fraud, and the absence of consumer protection, it did not impose any legal barriers to owning or trading them. As a result, cryptocurrencies existed in a legal grey area, outside the purview of traditional financial regulations and without the legal and regulatory oversight applied to conventional currencies​

​The Unregulated yet Cautious Approach

The Mozambican government’s stance was one of cautious observation rather than proactive regulation. As of the years before 2024, there were no specific laws, penalties, or law enforcement measures related to cryptocurrency in the country. This absence of regulation, however, did not signify an endorsement or a guarantee of immunity from future regulation or potential legal consequences. The government hinted that it was monitoring the situation and might consider regulation in the future, especially as the use of cryptocurrencies became more widespread. Potential future regulations could encompass aspects like consumer protection, taxation, and anti-money laundering measures, indicating the government’s recognition of the growing importance and risks associated with cryptocurrencies​

​Conclusion

In summary, Mozambique’s legislative landscape for cryptocurrencies prior to 2024 was marked by an absence of specific regulations, a cautious stance from the central bank, and a watchful approach from the government. Cryptocurrencies operated in a legal limbo, neither fully embraced nor outrightly rejected by the financial and regulatory systems. This situation mirrored the broader uncertainty and evolving nature of cryptocurrency regulation in many parts of the world during this period.