Cryptocurrency transactions are something that has been banned as of today in Zimbabwe. The news comes from The Reserve Bank of Zimbabwe which banned financial institutions in the country from processing cryptocurrency transactions for traders and investors, despite their growing interest in digital monetary assets within the country.
The Zimbabwean central bank on Friday said:
“In order to safeguard the integrity, safety and soundness of the country’s financial system, and to protect the public in general, all financial institutions are hereby required to ensure that they do not use, trade, hold and/or transact in any way in virtual currencies,”
This decision has sparked big debate in Zimbabwe over the heavy-handedness of the bank in regulating cryptocurrencies in the country. In December 2017 (when crypto was at its highest) the bank said that it was risky to trade in Bitcoin and other cryptocurrencies.
Currently, Golix is the biggest cryptocurrency exchange platform in the country, hosting a Bitcoin ATM in its offices in Harare. The officials said that Bitcoin grade is growing as it helps plug financial shortages in the country.
So, the decision by the Zimbabwean central bank to prohibit banks from facilitating trade in cryptocurrencies stems from other “financial regulators around the world who have identified the dangers and risks presented by virtual currencies”.
Further, cryptocurrencies can be used to facilitate tax evasion as well as an externalization of funds in violation of a country’s laws,” the bank concluded.
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