Botswana’s Virtual Assets Act 2022 outlines the scope of its application, providing clarity on the entities and activities it encompasses. Let’s unravel the key provisions to understand the ambit of this groundbreaking legislation:
Applicability:
1. Persons Covered:
- Organiser, Issuer, Founder, Purchaser, or Investor: The Act applies to individuals engaged in various roles, including organisers, issuers, founders, purchasers, or investors involved in the formation, promotion, maintenance, organization, sale, or redemption of an initial token offering.
2. Virtual Asset Business:
- Irrespective of Physical Location: The Act extends its jurisdiction to any person carrying on a virtual asset business, irrespective of the physical location from which the activity is conducted. This emphasizes the global reach of the regulatory framework.
Exemptions:
Professional Capacity:
- Exclusion: The Act does not apply to individuals acting in a professional capacity on behalf of those engaged in procuring the organization, promotion, issuance, sale, or trade of virtual assets.
Specific Transactions:
- Affinity or Rewards Programs: Transactions involving the granting of value as part of an affinity or rewards program are exempted if the value cannot be exchanged for legal tender, bank credit, or any virtual asset.
Digital Representations in Games:
- Exclusion: The Act does not cover digital representations of value issued within an online game, game platform, or game sold by the same publisher or offered on the same game platform.
Non-fungible Tokens (NFTs):
- Exempted: The Act specifically excludes non-fungible tokens, recognizing their unique nature and application.
Electronic Representations:
- Exclusion: Certain electronic representations, including those of fiat currency, securities, or any other financial asset under the Bank of Botswana Act or Securities Act, fall outside the scope of this legislation.
Conclusion:
Botswana’s Virtual Assets Act 2022 strikes a balance by encompassing key players and activities in the virtual asset ecosystem while providing exemptions for specific contexts. This nuanced approach reflects an awareness of the diverse nature of digital assets and their applications in different domains.
