According to the Zambian SEC Chief Executive Officer, Philip Chitalu, KWAKOO and its promoters and/or representatives are NOT licensed or authorized by the SEC to provide investment advice or solicit funds from the Zambian investing public for investment in any financial product in Zambia or elsewhere.
The SEC boss went on to further clarify what Initial Coin Offerings (ICOs) are explaining that such offerings are not standardized and their legal and regulatory status is likely to depend on the circumstances of the individual ICO further warning that there are clear risks associated with these offerings.
The notice on cryptocurrencies however points out that SEC has no jurisdiction over cryptocurrencies and digital assets stating:
“Many have asked whether these products/assets are safe to invest in and if they fall under the Commission’s ambit. The fact of the matter is that currently these products/assets are not regulated by the Commission unless they meet the definition of a security as defined by the Act and this, as indicated above will be considered on a case by case basis.”
We don’t dispute the regulating bodies responsibility to protect its citizens. We however urge them to move with speed to create regulation for fintech, digital assets, and the like otherwise, with people having the internet and a mobile device… its impossible to stop the march of these innovations.