RBZ Bans Biticoin Trading

RBZ Bans Bitcoin Trading

The Reserve Bank of Zimbabwe (RBZ) has ordered all financial institutions in the country to immediately stop trading or transacting in cryptocurrencies.

RBZ registrar of banking institutions, Norman Mataruka in a circular yesterday, said they were taking these measures to protect the public and safeguard the integrity, safety and soundness of the country’s financial system.

The central bank said financial institutions should exit any existing relationships with virtual currency exchanges within 60 days and proceed to liquidate and restitute existing account balances.

Mataruka said for the avoidance of doubt, banking services would include maintaining accounts, registering, trading, clearing, collateral arrangements, remittances, payment and settlement accounts, giving loans against virtual tokens.

He added that accepting cryptocurrencies as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/sale of virtual currencies was also prohibited.

“As monetary authorities, the Reserve Bank of Zimbabwe is the custodian of public trust and has an obligation to safeguard the integrity of payment systems.

Cryptocurrencies have strong linkages and interconnectedness with standard means of payments and trading applications and rely on much of the same institutional infrastructure that serves the overall financial system,” he said.

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