Zimbabwe Court Lifts Central Bank's Banking Ban on Bitcoin Exchanges

Zimbabwe Court Lifts Central Bank's Banking Ban Bitcoin Exchanges

The Harare High Court has lifted a ban by the central bank which resisted all banks and financial institutions from providing solutions to cryptocurrency exchanges.

Golix had applied to the High Court seeking it to reverse the ban instituted by the central bank. The RBZ had banned banks from processing transactions involving crypto-currency trades.

"The ban was lifted," Nhlalwenhle Ngwenya, communications manager at Golix, told CCN on Thursday afternoon.

He said a statement could accompany. However, it's emerged that the Reserve Bank of Zimbabwe officials, including the governor, John Mangudya, did not turn up for court proceedings. This prompted the High Court in Harare to issue a default ruling that permanently lifted the Zimbabwean central bank's ban.

"We're hoping that we could quickly return to doing business and processing the order publication," said an official.

Golix had stopped the purchase book on Thursday as it sought to take care of the disruption to its operations after the central bank prohibit, the exchange said in a notice to members Thursday morning.
A Relief to Crypto Traders

The information brought relief to bitcoin along with other crypto traders and investors in Zimbabwe that were unable to trade on an exchange platform. Golix runs a crypto exchange platform as a well as an ATM in Harare.

"Where is the party," proclaimed one dealer on Telegram as information of this lifting of this ban spread. "RBZ ban on cryptos lifted by the High Court. Administrative justice is alive and well within this jurisdiction. Section 68 of the Constitution is our best buddy," tweeted attorney, Fadzai Mahere.

In its program against the central bank's movement, Golix said"the ban in effect outlaws and classified as illegal swimmer's operations."

"The Respondents are in fact purporting to classify the trade in cryptocurrency as illegal," it added.

Golix further asserts in its court program that the decision taken by the central bank to ban it from cryptocurrency trading in the country amounts to"lawmaking, a role that goes back to the legislature" rather than the central bank.

After banning banks from processing cryptocurrency trades in the nation, the central bank of Zimbabwe then wrote to Golix last week, ordering it to close down its operations.

"All cryptocurrency exchange houses operating in the country, such as Bitfinance (Private) Limited (also referred to as Golix), are required to cease all virtual money exchange operations," wrote Norman Mataruke, the central bank's registrar of banking at a letter to Golix dated May 15.

Mataruke Led that exchange platforms in Zimbabwe were "required to take all the necessary Actions to close the cryptocurrency Accounts or'wallets' of your clients and to make good any funds Now held on behalf of clients" investing and trading virtual currencies.