Europe has taken a decisive step into the digital future. The Markets in Crypto-Assets (MiCA) Regulation, now active across the European Union, has created the world’s first complete legal framework for cryptocurrencies. In just half a year, more than 40 service providers have already secured licenses. By setting clear standards for everything from Bitcoin exchanges to stablecoins, MiCA has proven that transparent rules do not kill innovation, they encourage it.
Lesotho, however, remains stuck in uncertainty. The Central Bank of Lesotho continues to distance itself from the crypto sector, insisting that digital assets are outside its mandate. The result? Citizens are left exposed to scams and unregulated platforms, while the government misses out on valuable tax revenue and licensing fees. At the same time, neighbors such as Mauritius and Botswana have forged ahead with tailored frameworks, positioning themselves as safe havens for investment in the region.
What can Lesotho learn from MiCA? Four lessons stand out. First, legal certainty attracts businesses, companies will not set up shop in countries where the rules are unclear. Second, consumer protection builds credibility. MiCA enforces safeguards like segregated client funds and strict cybersecurity, measures that boost public confidence. Third, smart regulation pays for itself, with supervisory fees and taxes feeding into national coffers. Finally, regional alignment matters. The EU’s success comes from harmonized cross-border rules; Lesotho should work with SACU and SADC partners to avoid becoming an isolated outlier.
The path forward does not require inventing new law from scratch. The Commonwealth has drafted a Model Law on Virtual Assets, designed for smaller states, which can be adapted and rolled out in stages: recognition of digital assets, anti-money laundering requirements, licensing of exchanges, and finally, regional cooperation.
The choice before Lesotho could not be sharper. Either we take steps to regulate responsibly and claim a place in Southern Africa’s digital economy, or we watch from the sidelines as others capture the opportunities. MiCA has shown the world that regulation is not a barrier but a foundation for growth. If Lesotho wants to protect its people, grow its economy, and compete regionally, now is the time to act.