Trading on two of the top crypto exchanges in Zimbabwe, Golix and Styx24, came to a halt after the Reserve Bank of Zimbabwe (RBZ) issued directives against trading cryptocurrencies in the country. Zimbabwean crypto exchange Golix has asked its customers not to make any further deposits until it makes an announcement related to the matter. According to reports, the cryptocurrency exchange has already requested banks to re-open their accounts so that reimbursement to clients becomes possible.
High Court Gives Decision In Golix’s Favor
The central bank’s registrar of banking, Norman Mataruke in a letter to Golix stated, “All cryptocurrency exchange houses operating in the country, including Bitfinance (Private) Limited (also known as Golix), are required to cease all virtual currency exchange operations.” He further added that they must take the required steps for closing operations of cryptocurrency accounts or ‘wallets’ of the customers.
Golix immediately approached the High Court seeking a ruling against the ruling of the RBZ. Since the RBZ representatives were not present during the court proceedings, the Harare High Court gave the decision in favor of Golix which directly made an impact on the ban issued by RBZ on cryptocurrency trade in Zimbabwe.
But the battle for survival for the Zimbabwean crypto exchanges still persists as it will take much longer for Golix to restore its cryptocurrency trading operations. According to a report, Golix is waiting for the country to finalize the regulations related to cryptocurrency trading and is still working to get their accounts re-opened by the local banks.
Withdrawals Being Delayed Due to Manual Processing
Golix has said that if the customers try to deposit funds in the company’s bank accounts right now, they will straightaway reach a suspended account and it may take weeks for Golix to recover the funds unless the bank has been told in advance about the transaction. That is why the Zimbabwean cryptocurrency exchange has appealed to its customers to wait for the announcement until it is safe for making crypto deposits.
According to the largest cryptocurrency exchange in Zimbabwe, even the withdrawals of cryptocurrencies are being currently carried out manually and hence it takes longer to process them than usual. The decision of RBZ has left around 50,000 Golix clients stranded as they cannot withdraw their deposits even though Golix is working after the High Court reversed the ban by RBZ.
