Analysing the Cryptocurrency Regulatory Environment of Malawi Using Pathetic Dot Theory

Cryptocurrencies are gaining popularity as a means of electronic payment across the globe. The aim of this paper is to analyse how financial regulatory environment can leverage the adoption of cryptocurrencies and enhance financial inclusion. The study used case of Malawi as an example of a developing country that was considering regulating cryptocurrencies. Using Pathetic Dot Theory to analyse secondary data, the findings showed that the country had substantial ICT infrastructure concentrated in urban areas that may support cryptocurrencies services. However, the country did not have adequate legal frameworks to regulate use of cryptocurrencies. The demand-side of payment systems e.g. the cryptocurrency market was still underdeveloped and required awareness of cryptocurrencies services to support financial inclusion. The study contributes to the understanding of cryptocurrencies regulatory environment in the context of developing countries.