Cryptocurrency trading stopped despite High Court order

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By Agencies

THE country’s major BitcoinExchange, Golix will take longer than anticipated to restore cryptocurrency trading. The company says they’re waiting on the cryptocurrency regulations in the country to be finalized. They also added that they’re still working on getting their bank accounts re-opened.

Golix and Styx24 are two of the leading cryptocurrency exchanges in Zimbabwe. Cryptocurrency trading at Golix came to a halt recently after the Reserve Bank of Zimbabwe (RBZ) issued an order against it.

However, the exchange approached the High Court seeking an order to set aside RBZ’s ruling.

The Harare High Court issued a default ruling in favour of Golix because RBZ’s representatives failed to appear for the court proceedings. This ruling effectively lifted the central bank’s directive banning cryptocurrency trade in the country.

Nhlalwenhle Ngwenya, communications manager of Golix announced the reversal of the ban on 24th May.

The directive by the RBZ had put a stop to all cryptocurrency trade activities in the country. Norman Mataruke, the central bank’s registrar of banking had written a letter to Golix on May 15th stating,

“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.”

Maratuke further added that they are, “required to take all the necessary steps to close the cryptocurrency accounts or ‘wallets’ of your customers and to make good any funds currently held on behalf of customers.”

Though the High Court ruling reversed the ban on cryptocurrency, services at the exchange platforms are yet to resume. Golix sent emailed communication to clients and traders on Tuesday informing them that cryptocurrency trading is restricted for now.

This raised queries from traders and investors to which the company responded by saying,

“Please do not attempt to make deposits to Golix until we announce that we have resumed trading and that it is now safe to do so. Right now we are not conducting any OTC transactions.”

Golix’s online platform facilitated the deposit, withdrawal and purchase of Bitcoin, Ethereum and other cryptocurrency. They’d installed a Bitcoin ATM in Harare which enabled purchase and withdrawal of Bitcoin in exchange for physical USD notes.

The company states that their staff are actively working towards getting bank accounts reopened. They’re also engaging in talks with the bank to allow them send customer funds to Bitcoin and Ethereum wallet holders.

Golix is also engaging with Zimbabwean regulators to settle these issues, sources said. They also plan to present their view on the safety of cryptocurrencies and the blockchain technology to the bank.