Recently, the Reserve Bank of Zimbabwe(RBZ) had declared a ban on usage of any cryptocurrencies in the country. But with a permit of trading local digital currencies. In response to this, popular cryptocurrency exchange Golix has filed a legal petition against RBZ for banning cryptocurrency.
Aggravated crypto enthusiasts blamed RBZ stating that ‘the bank has no authority to ban crypto activities’. Earlier the bank mentioned about risks involved in trading crypto and treating crypto as business assets.
With respect to this, the RBZ has issued a circular on Friday to “stop providing bank accounts issued to cryptocurrency exchange companies within next sixty days”
This news certainly had an adverse effect on cryptocurrency exchanges like Golix, Bitfinance, and Styx24. As per statements made by exchange house,
“Unless the central bank changes its position prior to the expiry of the sixty-day window, exchange houses will not be able to send or receive fiat currencies for cryptocurrency trades“
Golix’s lawsuit against RBZ
As per local reports, the exchange house termed this as an inexperienced way of handling local currencies and the governor has no right to take such action. Furthermore, the exchange house elaborated that,
“The respondents are in fact purporting to classify the trade in cryptocurrency as illegal. That will amount to law making, a function that belongs to the legislature and not the respondents. Respondents are thus clandestinely usurping Parliament’s law making powers.“
Despite the circular of the ban on digital currencies, Golix is going forward with its Initial Coin offering(ICO) proposal.
So what do you think of Golix’s legal action towards RBZ? Let us know your thoughts in below comment section.