Reserve Bank of Zimbabwe Files Lawsuit to Uphold Golix Crypto Ban

In response to a suit filed by the Golix digital asset trading platform, the Reserve Bank of Zimbabwe recently filed opposing papers to the Zimbabwean High Court. The central bank argues that its directive to ban Golix from transacting with banks was lawful and should, therefore, be implemented.

The bank further claims that the integration of virtual assets transactions to the mainstream banking institutions presents a substantial risk to the country's financial operation. Moreover, Golix is neither registered nor monitored by the government; a factor further enhances the risks.

Through the filing papers, the central bank’s governor, John Mangudya explicitly states that Golix is not an accredited bank or financial institutions, yet it indulged in the provision of banking services. In this regard, John further explained that Golix also provides money transfer, ATM, banking, and cash transfer services, all of which demand registration and regulation. Nonetheless, the Reserve Bank acknowledges that there is an ongoing cryptocurrency boom worldwide. Regardless, the central bank says that the directive was issued upon the realization that Golix was partnering with banks to facilitate illegal and vulnerable financial transactions involving digital currencies, especially Bitcoin.

Refuting the allegations that their platform abets illegal cryptocurrency transactions, the Golix executive team stated that the exchange is compliant to the KYC protocol which prevents the usage of cryptos for illicit causes. In recent times, a severe foreign currency shortage has hit the Zimbabwean economy, prompting individuals to seek a different means to make online transactions such as money transfer and online shopping. Consequently, the usage of cryptocurrencies has risen rapidly, especially Bitcoin.

Despite the obvious potential benefits of introducing digital currencies, the Reserve Bank of Zimbabwe is adamant that such a move would initiate the proliferation of illegal activities. Specifically, it labels the upcoming Golix token crowdsale as a Ponzi scheme that is extremely risky. Concerning this matter, the governor stated that the bank was obliged to stop the ICO since it was a highly volatile project.

The opposing filing also claims that the reserve bank did not bar Golix for operating within Zimbabwe. Last month, Golix received a favorable and iconic ruling from the Zimbabwean High Court, allowing the platform to continue operation after the imposition of the directive by the local regulatory bank.

While Zimbabwe is working out how to regulate virtual currencies, neighboring South Africa has already made significant steps in that direction. Currently, the country is taxing income made through cryptocurrency investments. Furthermore, the nation is testing the applicability of distributed ledger technology in the banking systems.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today