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Zimbabwe’s Central Bank Orders Crypto Exchange Shut Down

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Earlier we reported that some banks had shut down Golix’s accounts and we can now confirm that last week Tuesday RBZ sent a directive to Golix instructing them to cease all operations in relation to virtual currency exchange.

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For Golix, when it rains it pours. The past week has just been a never-ending storm for the crypto-currency exchange. Banks were told not to associate with them. The public was told not to associate with them and now they are being told to close their doors.

When the ‘ban’ was declared by the RBZ, Golix probably thought they had some time to resolve the issue as RBZ gave banks 60 days to disassociate themselves with cryptos but in less than two weeks the central bank is trying to resolve this as swiftly as possible.

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RBZ sent Golix a statement instructing them to shut down all the operations and you can read the statement below:

15 May 2018

The Chief Executive Officer

Bitfinance (Private) Limited

Batanai Gardens

HARARE

Dear Sir,

PRESS STATEMENT: WARNING AGAINST TRADING IN CRYPTOCURRENCY

I. We refer to the Press Statement: Warning against Trading in Cryptocurrency, issued by the Reserve Bank of Zimbabwe on 11 May 2018.

2. In line with the decision of the Reserve Bank of Zimbabwe to ban virtual currency exchanges and virtual currency transactions, 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. All entities regulated by the Reserve Bank of Zimbabwe have been directed not to deal in virtual currencies or provide services to facilitate any person or entity in dealing with or settling virtual currencies.

3. In ceasing operations, you are required to take all the necessary steps to close the cryptocurrency accounts or “wallets” of your customers and to make good any funds currently held on behalf of customers.

Be advised accordingly.

Yours faithfully.

N.Mataruka
Registrar of Banking Institutions

What happens to Golix users/customers?

If you are reading this and you’re among those who have been failing to withdraw your money, you can take heart because it seems RBZ wants to ensure that people will get their money back if this goes south.

At the time of the ban, we were left wondering what motivated the decision by the central bank to ban something they clearly lack understanding of.

Will Golix take this lying down?

This is a huge deal and it will be interesting to see if Golix will take this lying down. If they do decide to take action, what can they do? Will they seek council with the central bank and try to resolve this in a diplomatic manner? Is it still even possible to resolve this issue in a diplomatic manner? We will see but it seems the RBZ has put their foot on the throttle and will not rest until cryptos are history.

RBZGolix

The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About RBZ

Golix is a Cryptocurrencies exchange in Zimbabwe. Golix was founded in December 2014 and was initially called BitFinance while their exchange was called Bitcoin Fundi. The company was founded by Tawanda Kembo and Verengai Mabika. In May 2018, Golix was ordered to shut down operations... Read More About Golix

13 thoughts on “Zimbabwe’s Central Bank Orders Crypto Exchange Shut Down

  1. From a reasonable decision to a rushed decision. The RBZ has pushed too far and ripped another envelope into pieces. How do 60 days turn into weeks and hours

    1. You seem bitter and jealous of the success Golix has enjoyed. Your comment betrays how sadistic you are

  2. Zimbabwe is open for business but not this kind of business. What is business to these oaks ?

  3. While I initially supported the rbz decision there’s no reason for this… Is just petty… They obviously feel hard done by golix… But who knows maybe the price of bond to USD will drop now…

  4. &%$# RBZ and their fear of technology.
    They forced bond Notes on us. They said Bond is equivalent to USD bit now… This is b&%$#%%^t.

  5. So perhaps someone should take the RBZ to account over their own cryptocurrency, the Bond Note. Perhaps the RBZ should be shut down and all holders of Bond Notes be given back their USD that they used to acquire these Bond Notes. RBZ is just worried that their cryptocurrency is competing unfavourably with BTC, ETH etc.

  6. It’s not competing people are using it to get more for their USD and on the opposite side they cleaning their RTGS an ending spiral… All of which golix were using… The bitcoin argument is not about bitcoin but about premiums… If it was equal as it is on most exchanges… There would be no golix to talk about

    1. Perhaps this is just a reflection of the actual value of the RTGS Cryptos we are using. RBZ doesn’t like having the mirror so close to its nose.

  7. and again, Here it is again, from a proper investor, with REAL investments: Warren Buffett on cryptocurrencies: “When you buy something because you’re hoping tomorrow morning you’re going to wake up and the price will be higher, you need more people coming into it than are leaving. And you can get that and it will feed on itself for a while, and sometimes for a long while, and sometimes to extraordinary numbers, but they come to bad endings, and cryptocurrencies will come to bad endings. And along with the fact that there’s nothing being produced in the way of value from the asset, you also have the problem that it draws in a lot of charlatans and that sort of thing, who are trying to create various sorts of exchanges or whatever it may be. It’s something where people who are of less-than-stellar character see an opportunity to clip people who were trying to get rich because their neighbor’s getting rich buying this stuff neither one of them understands. It will come to a bad ending”

  8. oh my word, this is terrible! From a proper investor, with REAL investments: Warren Buffett on cryptocurrencies: “When you buy something because you’re hoping tomorrow morning you’re going to wake up and the price will be higher, you need more people coming into it than are leaving. And you can get that and it will feed on itself for a while, and sometimes for a long while, and sometimes to extraordinary numbers, but they come to bad endings, and cryptocurrencies will come to bad endings. And along with the fact that there’s nothing being produced in the way of value from the asset, you also have the problem that it draws in a lot of charlatans and that sort of thing, who are trying to create various sorts of exchanges or whatever it may be. It’s something where people who are of less-than-stellar character see an opportunity to clip people who were trying to get rich because their neighbor’s getting rich buying this stuff neither one of them understands. It will come to a bad ending”

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