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Reserve Bank of Zimbabwe Uphold Exchange Ban

Zimbabwe flag waving against clean blue sky

Local news outlet Pindula has reported that the Reserve Bank of Zimbabwe (RBZ) last week filed opposing affidavits against the application by cryptocurrency Golix to have their ban repealed.

This follows a ban issued last month by the RBZ on cryptocurrency trading in Zimbabwe. In response, Golix filed a lawsuit against RBZ claiming they have no authority to make such a ban, and successfully got the ban lifted.

Beyond Golix, the ban also affected two other exchanges in the county, Bitfinance and Styx24.

Now the back and forth continues, with RBZ’s Governor John Mangudya not letting up on his insistence that cryptocurrencies are dangerous and financial institutions should not deal with them.

The affidavit claims that Golix is not a licensed financial institution and Golix’s trading platform is not registered or regulated. According to the RBZ, their currency exchange services and operation of an automated teller machine require licensing.

The bank further claims that the ban was put in place due to Golix facilitating illicit and risky financial transactions with other banks. Golix dispute these claims, insisting that the platform follows strict regulations to avoid illegal activities related to cryptocurrency usage.

Zimbabwe has been mired by a severe lack of foreign currency which the majority of its residents use due to the collapse of the Zimbabwean dollar. The implementation of cryptocurrency in the country could go a long way to resolving a number of its problems in this respect. However, the Reserve Bank says further research into digital assets must be completed first.

Image Fro Shutterstock

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