The Virtual Assets Act 2022 in Botswana lays out a comprehensive framework for individuals or entities seeking to engage in a virtual asset business.
The application process is detailed in the following provisions:
Application Requirement :
Any person intending to carry out or participate in a virtual asset business must submit an application for either a virtual asset service provider license or an issuer of initial token offerings license.
Application Contents:
The application, as specified in subsection (1), shall include:
- Form and Manner: The application should adhere to the form and manner as prescribed by the regulatory authorities.
- Specify License: Clearly specify the type of license being applied for (virtual asset service provider or issuer of initial token offerings).
- Accompanying Documentation:
- (i) Proof of Registration: If applicable, provide proof of registration with a comparable body.
- (ii) Certificate of Incorporation: For legal entities, include a certificate of incorporation.
- (iii) Business Plan: Submit a comprehensive business plan covering financial and operational projections, the nature and scale of proposed virtual asset business activities, technological requirements, and staffing requirements where applicable.
- (iv) Management Arrangements: Detail particulars of the arrangements for the management of the virtual asset business.
- (v) Policies and Measures: Provide policies and measures adopted by the applicant to meet obligations under the Virtual Assets Act and the Financial Intelligence Act.
- (vi) Customer Due Diligence: Furnish particulars and information related to customer due diligence for key stakeholders, including organizers, issuers, founders, investors, beneficial owners, security holders, directors, and officers.
- (vii) Prescribed Fee: Include the fee as prescribed by the regulatory authorities.
Banking Act Exception:
- Entities licensed under the Banking Act may apply for a license to carry out a virtual asset business, subject to approval from the Central Bank.
Prohibition of Unlicensed Virtual Asset Business:
- The Act explicitly prohibits the carrying out or participation in a virtual asset business without holding a valid license issued by the Regulatory Authority.
These provisions underscore the importance of a meticulous and thorough application process, ensuring that entities entering the virtual asset landscape in Botswana are well-prepared, compliant, and equipped to contribute positively to the virtual asset ecosystem.
