More entrants into the Virtual Assets Service Provision (VASP) business are anticipated this year, the Non-Banking Financial Institute Regulatory Authority (NBFIRA) has revealed.

“To date, the regulatory authority has licensed two virtual assets service providers and is assessing other applications for licensing,” said NBFIRA spokesperson, Boa Ntebele.

Last year, NBFIRA licensed two virtual assets service providers - Yellow Card and Express Minds, following the enactment of the Virtual Assets Act in February 2022.

Though there is growing interest in Virtual Assets Service Provision (VASP) businesses in

Botswana, NBFIRA is on high alert to curb bogus and illegal operators.

“The Regulatory Authority’s mandate is to contribute to the stability of the local financial system by minimising systemic risk through promoting the safety and soundness of regulated entities as well as ensuring that their conduct is of a high standard, fair and efficient.

“Exposure to systemic risk due to poor business conduct will negatively affect the stakeholders’ confidence levels and reputation of the industry,” said Ntebele.

She further highlighted that the Authority’s licensing requirements entail that companies should meet the minimum capital requirements to ensure they will operate as a going concern for the foreseeable future.