Cryptocurrency Boom Sparks Concerns of Financial Crime in Lesotho

The Central Bank of Lesotho has issued a warning to the public about the growing trend of cryptocurrency adoption in the country, highlighting concerns over financial crime and regulatory oversight.

Growing Popularity of Cryptocurrencies

Bitcoin is the most widely used virtual currency locally, with many people promoting and using cryptocurrencies. While this trend may seem exciting, it comes with significant risks that users must be aware of.

Risks Associated with Cryptocurrency Activities

• Violations of anti-money laundering and combating of terrorist financing laws
• Tax law violations
• Exchange control regulations breaches
• Prosecutable offenses

Central Bank Warning

The Central Bank of Lesotho has issued a stern warning to the public, cautioning that losses or similar eventualities arising from cryptocurrency activities will not be compensated by the institution. Users are operating at their own discretion and must be aware of these risks.

Regulatory Framework

Section 23 of the Central Bank of Lesotho Act of 2000 grants the institution the sole authority to issue and redeem currency, but cryptocurrencies are not under its regulatory purview. The bank is urging users to exercise caution when engaging in cryptocurrency activities.

Contact Information

For more information and inquiries, members of the public can contact the Central Bank of Lesotho at:

• 22232094
• 22232085

The bank reserves the right to issue further updates should circumstances warrant. It is essential for users to stay informed about the potential risks and legal consequences associated with cryptocurrency activities in Lesotho.