In adherence to the Virtual Assets Act 2022 of Botswana, licence holders engaged in virtual asset business are obligated to uphold rigorous standards and implement robust systems to ensure the transparency, protection, and informed decision-making of stakeholders.
The following key obligations are outlined for licence holders:
Custody and Protection of Customer Assets (Section 20):
Licence holders with custody of virtual assets for customers must maintain a sufficient amount of each type of virtual asset to meet their obligations to customers.
Financial requirements, as prescribed, must be met.
Systems and Controls (Section 21):
Licence holders shall establish adequate systems and controls in their virtual asset business, proportionate to the scale and nature of their activities.
Systems and controls should cover recording, storing, protecting, and transmitting information, transaction monitoring, securing timely discharge of rights and liabilities, safeguarding customer virtual assets, and business continuity planning.
Acquisition of Beneficial Interest (Section 22):
Those desiring a beneficial interest in a licence holder must apply to the Regulatory Authority, providing detailed information about the nature of the proposed acquisition, the proposed beneficial owner, and how the acquisition is financed.
Regulatory approval is contingent on factors such as the influence of the proposed beneficial owner, their suitability, and the financial soundness of the proposed acquisition.
Offer of Virtual Assets and White Paper Publication (Sections 23-24):
Licence holders offering virtual assets must provide accurate and non-misleading information in the offer.
A comprehensive white paper, disclosing information for informed decision-making, must be published. The white paper should be readily accessible to potential purchasers.
Any subsequent amendments to the white paper, ordered by the Regulatory Authority or voluntary, should be promptly communicated.
Classification of Virtual Assets (Section 25):
Licence holders must clearly identify the class or classes of virtual assets available for subscription in the white paper.
Any proposed changes to the class or classes of virtual assets require prior approval from the Regulatory Authority, with corresponding amendments to the white paper.
These obligations collectively contribute to the integrity, accountability, and protection of stakeholders within the virtual asset business ecosystem in Botswana. Licence holders are expected to diligently adhere to these requirements to foster trust and confidence in the virtual asset market.
