Zimbabwe to trade Cryptocurrency again, banning party loses

On May 24th, Harare High Court lifted the ban on trading of cryptocurrencies that was imposed by the Reserve Bank of Zimbabwe [RBZ]. 

RBZ banned banks from processing cryptocurrency transactions in the country and the central bank of Zimbabwe ordered cryptocurrency exchanges to stop their activities, they wrote:

“All cryptocurrency exchange houses operating in the country, including Bitfinance (Private) Limited (also known as Golix), are required to cease all virtual currency exchange operations,”

However, Harare High Court lifted the ban, after officials from RBZ did not attend the case filed by Zimbabwe’s cryptocurrency exchange Golix. Reserve Bank of Zimbabwe officials, including the governor, John Mangudya, did not turn up for court proceedings. 

John Panonetsa Mangudya, the governor of the Reserve Bank of Zimbabwe was initially against the use of cryptocurrencies and believed that the nature of the transactions made them a “choice for money launderers and criminals.”

Mangudya added:

“The central bank has not licensed anyone to trade in virtual currencies and dealers and investors do not have the protection of the law.”

The first argument that Golix put forward was to ask whether the central bank had the authority to declare cryptocurrency illegal. Golix stated that RBZ had not given a reasonable notice and right of response when they issued their directives.

The RBZ had banned banks from processing transactions involving cryptocurrency trades. They were also against any cryptocurrency transaction taking place in Zimbabwe.

Nhlalwenhle Ngwenya, communications manager at Golix on Thursday afternoon stated to CNN saying:

“The ban was lifted.”

The officials of Golix are hoping that they can immediately go back to doing business and processing the order book.

Fadzayi Mahere, a legal team member, and constitutional lawyer tweeted:

“RBZ ban on cryptos lifted by the High Court. Administrative justice is alive and well in this jurisdiction. Section 68 of the Constitution is our best friend.”

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