Zimbabwe’s central bank, the Reserve Bank of Zimbabwe, ordered Golix, the country’s cryptocurrency exchange and Bitcoin ATM operator, to shut down its operations. In response, Golix has announced that it will be taking the central bank to court, as they should not have the authority to do so.
Since the country has banned crypto transactions through its banks, the central bank wrote a letter to Golix on May 15, stating that they should not further continue their business endeavours.
According to Norman Mataruke, the central bank’s registrar of banking, any crypto exchange or dealings of virtual currencies should be stopped immediately. He specifically stated it regarding,
“Bitfinance (Private) Limited, also referred to as Golix”. In addition, Mataruke, has instructed the exchange to close “cryptocurrency accounts or ‘wallets’… and to make good any funds currently held on behalf of customers.”
Golix is now looking to see what the High Court in Harare has to say in regard to the central bank’s decision. In particular, they have stated in their application that
“The ban in effect outlaws and classifies as illegal Applicant’s operations.” Another point was also mentioned that follows the previous statement: “The Respondents are in fact purporting to classify the trade in cryptocurrency as illegal.”
Golix doesn’t stop there, as the team believes that the central bank does not even hold the right position to be bringing such laws-in-effect. According to a statement made, law making is a “function that belongs to the legislature”.
Zimbabwe’s current economical stance is not all that bright, as the country has been faced with cash shortages. It is believed that cryptocurrencies have become an alternative method of payment in the country – it’s becoming common enough to the point where the crypto assets are gaining value against world averages. Will Zimbabwe be rid of cryptocurrencies or will the High Court in Harare rule in favor of Golix?