Reserve Bank of Zimbabwe has forbidden financial institutions to interact with cryptocurrencies

Reserve Bank of Zimbabwe has forbidden financial institutions to interact with cryptocurrencies

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The Reserve Bank of Zimbabwe has forbidden all financial institutions of the country to participate in any form of activity related to cryptocurrencies. This is written by the local news publication NewsDay.

According to its information, in a letter signed by the secretary for banking organizations Norman Mataruka, the regulator said that he took this step to protect the public and support the integrity and security of the country’s financial system.

All Zimbabwean financial institutions, including commercial banks and mobile payment service providers, need to ensure that they do not use, trade, hold or transfer virtual currencies, or provide banking services that can allow individuals and legal entities to perform cryptocurrency settlements with their participation.

The head of the central bank of Zimbabwe, John Mangudya, warned the public about the trade in cryptocurrencies.

“Any person who buys, sells or otherwise transacts  in cryptocurrencies, via the Internet or in some other way, does so at his own risk and can not contact the Reserve Bank or any regulatory authority in the country,” he said.

The regulator also identified a number of services, including the opening and maintenance of accounts, registration, trade, clearing, retail payments and transfers, the issuance of loans and the receipt of collateral that are not allowed to work with virtual currencies.

In addition, the Reserve Bank of Zimbabwe ordered that any existing relations with the cryptocurrency exchanges be broken off and their funds repaid within 60 days.

Zimbabwe does not recognize cryptocurrency as a legitimate medium of exchange and does not have a regulatory framework for their regulation.

In October last year, when at most trading sites bitcoin cost about $6,000, in Zimbabwean Golix its rate rose to $9,000.

Earlier a similar decision was made by the Reserve Bank of India.

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