Country overview

#75

Botswana

Country stats

Rating Points

150

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

120

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

25 000

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

33.7

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

No info

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Very high danger

The overall level of security in a given country based on open data.

Crypto Salaries

No info

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

No data

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

No data

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Wallet/Custody

This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.

ICO/STO

This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.

Good

Medium

Bad

intro

Botswana is a small country in South-East Africa, which has introduced a licensing regime for cryptocurrency exchanges and crypto regulation in 2023.

Security level

Botswana has a very high danger security level, according to our rating. Jurisdiction has 47.4 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 10.5 per 100,000 inhabitants a year.

Crypto Payments

Currently, there is no regulation for crypto payments in the country.

Crypto Salaries

We do not have data on crypto salaries regulation in Botswana. Please, connect with us if you have this information.

Legal

Trading in cryptocurrencies has been largely unregulated until recently, and the government has taken steps to regulate the sector. “The Virtual Assets Bill” was approved by Botswana’s lawmakers on February 25, 2022 and its purpose is primarily to hold and license trading in virtual assets in the Republic of Botswana. The need to regulate the crypto sphere arose because the industry cannot be left unregulated in the country and could hurt the nation’s efforts in tackling financial crimes.

You may find more details in Botswana Virtual Assets Act (4).

Licensed activity includes Virtual Asset Service Providers (VASP) and Virtual Asset Business:

1)Crypto to crypto/сrypto to fiat;

2)Wallet;

3)ICO.

According to the announcement, the Non-Bank Financial Institution Authority of Botswana (NBFIRA) (5) issued the VASP license on Sept. 29 per Section 11 of the Virtual Asset Act, 2022.

VASPs will be regulated (6) like any other non-bank financial institution and be subjected to the provisions of the Financial Intelligence Act to ensure that they have adequate Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation (AML/CFT&P) policies and procedures for purposes of providing that they are not used for money laundering activities.

Yellow Card was the first exchange, which received a license in Botswana in 2023.

Taxation

Tax name	Index
PIT tax Min	15
PIT tax Max	25
Corporate tax (CIT)	22
Min Individual CGT (for crypto)	5
Max Individual CGT (for crypto)	22

PIT

The headline PIT rate is 25% based on PWC(7).

CIT

Headline CIT rate is 22% by PWC(7).

CGT

Capital gains are subject (7) to the average CIT rate of 22%.

There is no information about individual crypto taxation, and it’s probably regulated by ordinary CGT tax. In the case of individuals, capital gains above (8) P 36,000 are taxed at 5%, above P 84,000 at an additional 12.5%, above P 120,000 at an additional 18.75%, and above P 156,000 at a maximum marginal tax rate of 25%.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)Botswana to Regulate Crypto That Was Feared Becoming ‘Wild West’. Article

4)VIRTUAL ASSETS ACT, 2022. Law

5) Non-Bank Financial Institutions Regulatory Authority (NBFIRA)

6) New NBFIRA Virtual Assets Act tackles financial crime

7)Overview. PWC

8)RSM - THE GLOBAL DESTINATION FOR YOUR ASSURANCE, TAX AND CONSULTING NEEDS. Article

Articles

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Brazil: Hot Spot for Nomads and Biggest Fintech Market in LatAm

Brazil is a big economy with low legal barriers for crypto companies and here it's why.

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In Which Countries Are Staking Rewards Taxed?

In this research, we’ve provided a clear overview of crypto staking rewards taxation worldwide

intro

Botswana is a small country in South-East Africa, which has introduced a licensing regime for cryptocurrency exchanges and crypto regulation in 2023.

Security level

Crypto Payments

Currently, there is no regulation for crypto payments in the country.

Crypto Salaries

We do not have data on crypto salaries regulation in Botswana. Please, connect with us if you have this information.

Legal

You may find more details in Botswana Virtual Assets Act (4).

Licensed activity includes Virtual Asset Service Providers (VASP) and Virtual Asset Business:

1)Crypto to crypto/сrypto to fiat;

2)Wallet;

3)ICO.

According to the announcement, the Non-Bank Financial Institution Authority of Botswana (NBFIRA) (5) issued the VASP license on Sept. 29 per Section 11 of the Virtual Asset Act, 2022.

Yellow Card was the first exchange, which received a license in Botswana in 2023.

Taxation

Tax name	Index
PIT tax Min	15
PIT tax Max	25
Corporate tax (CIT)	22
Min Individual CGT (for crypto)	5
Max Individual CGT (for crypto)	22

PIT

The headline PIT rate is 25% based on PWC(7).

CIT

Headline CIT rate is 22% by PWC(7).

CGT

Capital gains are subject (7) to the average CIT rate of 22%.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)Botswana to Regulate Crypto That Was Feared Becoming ‘Wild West’. Article

4)VIRTUAL ASSETS ACT, 2022. Law

5) Non-Bank Financial Institutions Regulatory Authority (NBFIRA)

6) New NBFIRA Virtual Assets Act tackles financial crime

7)Overview. PWC

8)RSM - THE GLOBAL DESTINATION FOR YOUR ASSURANCE, TAX AND CONSULTING NEEDS. Article