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Zimbabwe’s Central Bank Orders Crypto Exchange Shut Down

   

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.

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.


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