Golix Filed Lawsuit against Reserve Bank of Zimbabwe over Cryptocurrency Ban

Golix Filed Lawsuit against Reserve Bank of Zimbabwe over Cryptocurrency Ban

cryptocurrency exchange News
May 23, 2018 by Sandra Onyeiwu
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Zimbabwe cryptocurrency exchange platform Golix has taken the country’s central bank, the Reserve Bank of Zimbabwe, to court. Last week cryptocurrency enthusiasts and businesses in Zimbabwe received bad news as the central bank decided to ban all digital currency activities. The ban affects the exchanges of Localbitcoins within the region alongside three exchanges Golix, Bitfinance and Styx24.
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Zimbabwe cryptocurrency exchange platform Golix has taken the country’s central bank, the Reserve Bank of Zimbabwe, to court.

Last week cryptocurrency enthusiasts and businesses in Zimbabwe received bad news as the central bank decided to ban all digital currency activities.

The ban affects the exchanges of Localbitcoins within the region alongside three exchanges Golix, Bitfinance and Styx24.

Mataruke also directed that cryptocurrency exchange platforms in Zimbabwe were “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” trading and investing virtual currencies.

Shortly after the ban the central bank of Zimbabwe subsequently wrote to Golix which operates a bitcoin ATM in addition to its online virtual currency exchange market ordering it to shut down its operations.

This has now sparked a legal battle in which Golix is seeking that the High Court in Harare set aside the directive by the central bank. Saying the bank’s ban of cryptocurrency trading was unconstitutional as there are no laws that empower it to make such legislative moves.

“The ban in effect outlaws and classifies as illegal Applicant’s operations,” said Golix in its application to the High Court in Harare. “The Respondents are in fact purporting to classify the trade in cryptocurrency as illegal,” it added.

News.Bitcoin.com reached out to Golix for further information on this lawsuit but has yet to hear back from the exchange. According to other reports, even though the RBZ has issued a ban in its circular to banking institutions concerning virtual currencies, Golix is still organizing an initial coin offering (ICO).

 

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