Zimbabwean High Court Revokes Central Bank’s Ban on cryptocurrencies
The Harare High Court has revoked a ban by the Reserve Bank of Zimbabwe (RBZ) preventing cryptocurrency exchanges from accessing banking services. The default ruling was made after the bank failed to show up in court for the case proceedings.
Golix, an exchange in Zimbabwe that enables people to buy and sell cryptocurrencies, took the RBZ to court seeking to have the ban revoked. The ban had also ordered banks not to process cryptocurrency trade transactions.
In addition, the ban forced Golix to suspend its order book as it looked for a solution. “We are hoping that we can immediately go back to doing business and processing the order book,” Golix said.
RBZ had ordered all crypto exchanges in the country to “cease all virtual currency exchange operations.” Norman Mataruke, RBZ’s registrar said all cryptocurrency exchanges were “required to take all the necessary steps to close the cryptocurrency accounts or wallets’ of their customers and reimburse the funds held.
In its court application, Golix said “the ban in effect outlaws and classifies as illegal Applicant’s operations” adding that the ban is a lawmaking function which belongs to the legislature and not the central bank.
Globally, central banks have taken up the role of regulating cryptocurrencies as their popularity increases. In most cases, central banks have been anti-cryptocurrencies regarding it as high-risk. Still, Golix’s win is a relief to all Zimbabweans who make an honest living from cryptocurrencies, a sector which has offered job opportunities to a lot of people all over the world.