Reserve Bank of Zimbabwe’s Governor Defends Ban on Cryptocurrency Dealings

Read more: Central Bank Of Zimbabwe Bans Financial Institutions From Dealing in Cryptocurrencies

In the wake of this, Golix, the largest cryptocurrency exchange in Zimbabwe, submitted a High Court challenge stating that the RBZ does not have any authority to declare cryptocurrencies illegal.

Golix argued that only the country’s legislative body, the parliament, has the authority to formulate laws that ban virtual currencies. It is also arguing that the RBZ did not give adequate time for notice and a right of response when it issued its ban.

The central bank disputes Golix’s case that they acted outside of their authority in issuing the ban.

“… and prescribes a variety of supervisory actions that the bank may take as a measure to correct any conduct that may be a threat to the smooth operation of the banking and financial sectors,”

“It is as a result that the Bank directed banks not to deal with the applicant (Bitfinance (Pvt) Ltd) as the latter’s activities were not only unregulated and illegal, but presented all kinds of risk, including but not limited to fraud, money-laundering, evasion of the country’s exchange, terrorism financing.”