Zimbabwe’s Harare High Court suspended the ban imposed by the Reserve Bank of Zimbabwe on cryptocurrency trading as the central bank fails to show up. Last week, RBZ issued the crypto ban directive while ordering the country’s largest crypto exchange, Golix to cease its operations for which the exchange dragged RBZ to court.
Zimbabwe high court reverses central bank’s crypto ban
According to the local media sources, the Harare High Court of Zimbabwe lifted the ban imposed by the central bank that barred all the banks and financial institutions to facilitate crypto transactions. Golex, the biggest and first cryptocurrency exchange of the country has issued a directive to wind up its operation which is now suspended.
Golix took the case to the High Court citing RBZ had no right to enforce such laws, only the parliament can issue a financial ban. An urgent chamber application was filed to have the RBZ ban lifted.
The ruling of the court stated:
“The ban issued by the Respondents [RBZ] through letter dated 15 May 2018 against Applicant directing it to cease operations, shut down its virtual currency exchange business and ordering the closure of its bank account with its banks is hereby reversed and set aside.”
On the day of the hearing, the Reserve Bank of Zimbabwe failed to show at the High Court. Hence, the court issued a default judgment in favor of the cryptocurrency exchange. This means the RBZ imposed ban has been suspended and no longer applies.
Golix resumes cryptocurrency trading, A relief for crypto investors
Before the decision, Golix temporarily suspended its crypto exchange, issuing the statement:
“Please note that we have temporarily taken down the exchange’s Orderbook. Any developments related to this matter will be frequently updated. We sincerely apologise for any inconvenience caused.”
However, Golix and its legal team managed to have the High Court Judge Alphas Chitakunye to reverse RBZ’s ban.
Fadzayi Mahere, a member of the legal team announced:
“RBZ ban on cryptos lifted by the High Court. Administrative justice is alive and well in this jurisdiction. Section 68 of the Constitution is our best friend.”
Last week, the Reserve Bank of Zimbabwe (RBZ) ordered all the financial institutions to not to offer services to the cryptocurrency exchanges. RBZ also ordered Golix to cease their operations. A couple of days back, the exchange went to the high court to have the directive overturned.
This is an amazing news for the bitcoin and other crypto traders and investors in Zimbabwe. Now, Golix, that runs a crypto exchange and a bitcoin ATM can again provide its users the crypto services.
What are your views on Zimbabwe high court lifting the central bank’s on cryptocurrency trading? Do you think other countries with similar situations like India will follow the suit? Share your thoughts with us!