On May 11th, Reserve Bank of Zimbabwe released a circular instructing all domestic financial institutions to stop providing services to all cryptocurrency exchanges and begin liquidating existing cryptocurrency-related accounts, giving a 60 days ultimatum.
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.
When the Reserve Bank of Zimbabwe did not show up to the court hearing at the High Court and thus the High Court issued a default judgement in favor of Golix. This means that the cryptocurrency ban imposed by the RBZ was suspended but temporarily.
This can mean that there still is the chance, that legislators decide to follow the RBZ’s thinking and officially make cryptocurrencies illegal.
This could turn out as a huge failure to lot of innovative solutions in Zimbabwe that utilize cryptocurrencies to solve various challenges people face in Zimbabwe. Specially businesses like affordable remittance solutions, debt factoring solutions and many more out there that could be doomed if cryptos are banned.
According to a news report by TechZim
, Vic Falls Coin, a crypto that he hopes will be used in the tourism sector, particularly in the Victoria Falls Community (both in Zimbabwe and Zambia) has launched a petition to the Zimbabwean parliament to regulate cryptocurrencies rather than ban them as the RBZ would want.
The call is for the law-makers to liaise with those in the blockchain and cryptocurrency business to understand the new technology before deciding on how to regulate.
The petition is filed at a famous petition website on Change.org, titled, “Zimbabwean Parliament should regulate instead of banning cryptocurrencies”
where the Vic Falls Coin writes that having regulations will achieve the same objectives which a ban is intended to achieve-which is the protection of consumers/investors and the disruption of criminal activities within the sector.
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