On 13 May 2018, the Reserve Bank Of Zimbabwe (RBZ) issued guidelines in a circular that detailed cryptocurrency things to do taking place within the country are now banned. The RBZ in addition stated that domestic digital currency operations had sixty days to end up compliant. Local reviews now expose the Zimbabwe-based cryptocurrency exchange Golix plans to take the central bank to court for banning digital assets, as the company emphasizes that the RBZ has no authority to ban cryptocurrencies across the country.
Since the ban was announced, Applicants’ (Golix) customers have had a run on the exchange. They are disposing their cryptocurrency on the exchange and withdrawing the equivalent in fiat currency en masse. Since the ban was announced, a total of US$ 30,000 (thirty thousand United States dollars) per day has been withdrawn from the exchange. This represents 30% of all funds that were being traded on the exchange prior to the ban.
The ban was announced publicly on the 14th and this means they customers have attempted to withdraw about $210 000 since then. Customers have been trying to make withdrawals but failing since BOTH Golix’s bank accounts have been shut down .Golix has taken a hit and since they make their money from trading, the mass withdrawals are a nightmare for the crypto exchange.
[UPDATE]:A Golix official has informed us that the amount stated above are attempts to withdraw which they have been unable to process because their bank accounts have been shut.
The huge withdrawal amount isn’t the only interesting figure we stumbled upon as were checking out the court application:
Golix Files a Lawsuit Against the RBZ with the High Court
Shortly after the email, the regional book Zimeye.net suggested that Golix was once now planning to “slap a lawsuit” against the RBZ for issuing a national cryptocurrency ban. Golix says they are taking the central financial institution to the High Court and state that the RBZ governor has no ride with managing a neighborhood foreign money giving him no proper to ban it. The trade argues that the central financial institution has no authority to ban digital currencies and only parliament has the means to make such laws.
The respondents are in fact purporting to classify the exchange in cryptocurrency as illegal. That will quantity to regulation making, a function that belongs to the legislature and now not the respondents. Respondents are as a consequence clandestinely usurping Parliament’s law making powers.
Golix Has Yet to Receive Instructions From Their Bank — Continues Business as Usual
According to other reports, even although the RBZ has issued a ban in its round to banking institutions regarding digital currencies, Golix is nevertheless organizing an preliminary coin presenting (ICO). “Thus far we are but to acquire directions from our financial institution as to what will happen, if at all anything. Once we do, we will update,” an legit from the Golix trade detailed.