Licence holders in the virtual asset business in Botswana are mandated to uphold high standards of professional conduct and compliance.
The following provisions outline the expectations regarding professional conduct, data protection, financial reporting, and structural changes:
Professional Conduct (Section 26):
Licence holders must act honestly, fairly, and with due care, skill, and diligence.
A high standard of professional conduct is to be maintained in all aspects of virtual asset business.
Measures ensuring the protection of customer’s virtual assets and effective corporate governance arrangements consistent with the Act are to be established.
Confidentiality Measures (Section 27):
Licence holders are obligated to implement and maintain measures preserving the confidentiality of customer information.
Record Keeping and Data Protection (Section 28):
Record-keeping measures for collecting accurate information related to the originator, founder, and beneficial owner of a virtual asset business must be implemented.
Data protection measures, consistent with the Data Protection Act and as prescribed, are to be maintained to safeguard personal data of customers.
Financial Reporting (Section 29):
Annually, within three months after the close of the financial year, licence holders must submit audited financial statements related to virtual asset business activities to the Regulatory Authority.
The financial year is defined as the initial 18 months for the first financial year and subsequent 12-month periods for each following financial year.
Application for Modifications and Changes (Section 30):
Licence holders may apply to the Regulatory Authority for modifications, legal structure reorganization, mergers, or name changes.
Certain actions such as expanding activities, issuing new tokens, merging, appointing new directors or partners, changing shareholders, or modifying the name require prior approval from the Regulatory Authority.
These provisions underscore the commitment to professionalism, transparency, and compliance, aiming to ensure the secure and ethical operation of virtual asset businesses in Botswana.
