In recent developments, Golix, a Zimbabwe-based crypto exchange, filed a lawsuit against the Reserve Bank of Zimbabwe for banning crypto assets. On May 13, 2018, RBZ launched a circular which made all crypto related activities illegal in the country. It gave a 60-day window to the domestic crypto-based businesses to settle their operations. The exchange stated that RBZ has no authority to put a ban on digital currencies in the country.
The RBZ has warned users of the risks involved in trading digital currencies and asked financial institutions to not deal with crypto related businesses. This has created panic amongst the users.
The ban has supposedly made a significant impact on local bitcoin traders and the three exchanges in the country: Styx24, Bitfinance, and Golix. Last month, it installed a bitcoin ATM for the ease of its clients. The crypto exchange stated, “On Friday, the Reserve Bank of Zimbabwe issued a statement to all banks instructing them to stop providing bank accounts to cryptocurrency companies within the next sixty days.” After the end of the 60 days window, no citizen would be able to send and receive state-owned currencies for crypto dealings.
After the announcement, Zimeye.net, a local publication, reported that the exchange had filed a lawsuit against RBZ. It claimed that governor of RBZ had no experience in dealing with a crypto economy which pressured them to take the financial regulator to the High Court. It added that only the parliament possessed a legal authority to ban digital currencies, unlike RBZ. An official said, “I submit that the ban in effect outlaws and classifies as illegal Applicant’s operations.”
Since then, it has not come up with any comments or statements about the issue with RBZ. However, it is reportedly getting ready for an ICO launch amidst the band and unsettled lawsuit in the court. One official from the company informed that they are yet to receive any notice from their bank and will update the media once they are specified.
It is being reported that local investors and exchanges have been posting hate comments against RBZ’s decision. The country is already suffering from a shortage of foreign currency, and a new wave of un-satisfaction might prove to be a blow to the economy. Experts have stated that RBZ’s decision is logical as the company is suffering from cash shortage.
In contrast to the situation, the exchange is aiming to raise $32 million through its ICO while expanding operations throughout Africa. It has also signed a deal with a company from South Africa. From Monday, May 14, 2018 people will be able to buy GLX token and Ethereum ERC-20 on it’s website named tokensale.golix.com.
As of now, the lawsuit has not been heard by the court, and nothing can be speculated about the possible decision. It should also be noticed that RBZ does have a substantial say in financial matters and the court will keep that in mind. Right now, we can only wait to see the proceedings of the court and calculate the impact on Zimbabwe’s economy.
