The Reserve Bank of Zimbabwe (RBZ) has issued an order requiring all national financial institutions to immediately cease trading or transaction in cryptocurrencies.
According to the circular, all financial institutions must leave any existing relationship with encryption exchanges within 60 days and proceed to settle and restore the balances of existing accounts. They could no longer provide banking services for encryption exchanges. These services include account maintenance, registration, negotiation, compensation, guarantee agreements, remittances, payment and settlement accounts, and the granting of loans against virtual tokens, said Mataruka.
“Cryptocurrencies have strong links and interconnection with standard payment methods and commercial applications and depend on much of the same institutional infrastructure that serves the financial system in general,” said RBZ banking institution registrar Norman Mataruka.
The governor of the RBZ, John Mangudya, also warned the public not to participate in the cryptocurrency trade.
“Anyone who buys, sells or transacts in cryptocurrencies, either 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. He concluded by adding: “The Reserve Bank of Zimbabwe has not authorized or licensed any person or entity or change for the issuance, sale, purchase, exchange or investment in currencies / coins / virtual tokens in Zimbabwe. Exchanges such as Bitfinance (Private) Limited (Golix) and Styx24 are not authorized or regulated by the Reserve Bank. “
In a recent circular, RBZ Norman Mataruka stated that the purpose of the ban is to protect the public and safeguard the integrity, security and soundness of the country’s financial system.
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