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Zimbabwe Court Lifts Restrictions on Crypto

Zimbabwe Court Lifts Restrictions on Crypto 101
Source: iStock/Fredex8

Zimbabwean cryptocurrency exchange Bitfinance will resume its business after the High Court of Zimbabwe reversed the decision of the country’s central bank to restrict cryptocurrency-related operations in the country.

High Court judge Justice Alfas Chitakunye provisionally lifted the ban, following a successful application by Bitfinance, which operates as Golix, herald.co.zw reported.

The company’s lawyers, Mutandiro Chitsanga & Chitima Legal Practitioners, argued that the Reserve Bank of Zimbabwe (RBZ) acted contrary to the requirements of administrative law and the Constitution of Zimbabwe.

“The ban issued by respondents through letter dated May 15, 2018 against applicant, directing it to cease its operations, shut down its virtual currency exchange business and ordering the closure of its bank accounts with its bankers, be and is hereby suspended pending the return day,” ruled Justice Chitakunye.

Two weeks ago, the Reserve Bank of Zimbabwe told the nation’s financial institutions they must cease doing business with cryptocurrency exchanges in 60 days’ time. The central bank has stopped short of calling for a nationwide cryptocurrency trading ban, however, and had placed restrictions on cryptocurrency exchanges operating in the country three days later.

RBZ registrar of banking institutions Norman Mataruka, however, said in a note to clients that the bank’s decision was meant to protect the public and safeguard the integrity, safety and soundness of the country’s financial system, according to herald.co.zw. Meanwhile, central bank governor urged the public to forgo investing in cryptocurrencies: “Any person who buys, sells, or otherwise transacts in cryptocurrencies, whether online, or otherwise, does so at their own risk and will have no recourse to the Reserve Bank or to any regulatory authority in the country.”

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