Reserve Bank of Zimbabwe (RBZ) Bans The Trading of Cryptocurrencies In Zimbabwe
The central bank of Zimbabwe, RBZ, has placed a ban on transacting or trading with Cryptocurrencies. The ban applies to all financial institutions.
RBZ registration of banking institutions, Norman Mataruka in a circular yesterday, said they took these measures to protect the public and to safeguard the integrity, security and soundness of the country’s financial system.
In a statement from the RBZ reads:
“As monetary authorities, the Reserve Bank of Zimbabwe is the custodian of public trust and has an obligation to safeguard the integrity of payment systems. Cryptocurrencies have strong linkages with standard means of payments and trading applications and rely on much of the same institutional infrastructure that serves the overall financial system.”
“The Reserve Bank of Zimbabwe has not authorized or licensed any person or entity or exchange for the issuance, sale, purchase, exchange or investment in any virtual currencies/coins/tokens in Zimbabwe. Exchanges such as Bitfinance (Private) Limited (Golix) and Styx24 are not licensed or regulated by the Reserve Bank.”
In a separate statement, central bank governor John Mangudya warned the public against trading 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,” he said.
Financial regulators around the world have identified the dangers and risks presented by virtual currencies to financial stability which include risk of loss due to price volatility, theft or fraud, money laundering and other criminal activities. Further, cryptocurrencies can be used to facilitate tax evasion as well as externalization of funds in violation of a country’s laws.
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