Golden Finance reported that the Central Bank of Botswana issued a "Financial Stability Report" stating that due to the immature development of the local encryption market, the current risks to financial stability are "limited." However, the central bank emphasized the need to establish a regulatory framework to guard against potential future risks, and listed the use of digital payment tools for money laundering and terrorist financing as one of the five major national security risks. The report shows that although the increased interconnection between the crypto market and the traditional financial system may bring systemic risks, the current risks are controllable due to the relative simplicity of Botswana’s local virtual asset market. The central bank called on encryption service providers to comply with regulatory requirements such as anti-money laundering (AML) and counter-terrorism financing (CFT), and recommended that market monitoring and law enforcement cooperation be used to combat illegal activities.