Zimbabwe Bans All Cryptocurrency Activity

[stompix]

so this memo is just a reminder to banks to not directly handle crypto.

this does not mean citizens/private businesses are banned. it jsut means that banks will not let you get toilet roll, teddybears, crypto or baked beans from a bank branch. all a bank branch can offer is FIAT services

Normally this would certainly be the case but these paragraphs imply otherwise -

“all financial institutions … ensure that they do not use, trade, hold and/or transact in any way in virtual currencies; ensure that they do not provide banking services to facilitate any person or entity in dealing with or settling virtual currencies; and exit any existing relationships with virtual currency exchanges within sixty days of the date of this Circular and proceed to liquidate and restitute existing account balances.”

"The ban includes “maintaining accounts, registering, trading, clearing, collateral arrangements, remittances, payment and settlement accounts, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase / sale of virtual currencies.”


Most of the time they say nothing about ending banking relationships with crypto exchanges and anyone trading it using banking, but that's much more explicit and comprehensive that usual.

No great loss to us. Could be a reasonably sized one to a few Zimbabweans.

This from the memo:

5. In order to safeguard the integrity, safety and soundness of the country’s financial system, and to protect the public in general, all financial institutions are hereby required to:

a. ensure that they do not use, trade, hold and/or transact in any way in virtual currencies;

b. ensure that they do not provide banking services to facilitate any person or entity in dealing with or settling virtual currencies; and

c. exit any existing relationships with virtual currency exchanges within sixty days of the date of this Circular and proceed to liquidate and restitute existing account balances.

6. For the avoidance of doubt, banking services include maintaining accounts, registering, trading, clearing, collateral arrangements, remittances, payment and settlement accounts, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase/ sale of virtual currencies.

Either way, no matter how you look at it, it's bad news for zimbabweans...
I really want to see how those with which I've argued when they claimed people there are actively using BTC for purchases on a large scale are going to twist the story now

Even though it is a small country but these kinds of news will have some impact on prices and investors may lose the confidence. India also passed similar rule couple of months back for all banks stop dealing with crypto exchanges.

Zero impact! Just as India!
Volume on their biggest exchange:

30 Day Volume:  43.1497 BTC
24 Hour Volume:  0.5803 BTC

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[johnwest]

We need to note that these countries courts will put stay orders on orders. First India and now its Zimbabwe, Indian govt may not know what they are doing but zinmbabwe.? They cant manage their own currency, they should welcome cryptocurrencies.

[qiman]

I doubt the government or the banks can ever control the people to this degree. I am sure Zimbabweans know what VPN is and when coins like substratum go into full force, there will be ways to circumvent any kinds of ugly regulations. Anytime a government or entity banned things there was always illegal trade. People want to be financially free and not live in poverty anymore and doing crypto jobs and trading should be encouraged in a poor country where the government doesn't take care enough of the people.

[samuraijin]

I do not really believe in the media even they are accustomed to being paid by the big guys to make the news as if it looks serious but not too serious, pay attention to read the title that it is also in my country but most of them do not want to read the article just see the headline it is prohibited, it turns out that the truth is not in required to buy any goods in my country using bitcoin does not mean bitcoin and other crypto currencies are prohibited

[Kray]

it is not a new LAW. its a reminder/memo(circular)
for banks to only offer only fiat services direct
you cannot buy a iphone in a bank branch. but that does not mean you cant buy a iphone/toilet roll/ baked beans.
nor does it mean that private citizens/businesses should have accounts shut down for offering things that a bank cant offer

People panicked to see this news, even Bitcoin.com triggered it by writing a clickbait title and let the market affected by FUD. But this is still a bad news for Cryptocurrency users in Zimbabwe, whether it’ll be difficult to transact or got a bad stigma.

[Dudeperfect]

Well, it's not only happening and Zimbabwe but it is happening all over the world recently Indian Central Bank has instructed the banking sector to stop providing services to the exchanges involved in cryptocurrencies. Government officials strictly mentioned that they are making efforts in order to eliminate the usage of cryptocurrencies within the country. We all know that Bitcoin and other cryptocurrencies are based on the principle of decentralization which takes away the power from centralised authorities and transfers it to the users and government doesn't want the same thing to happen because they will lose control of our financial lifestyle.

[Sihab76]

Is it true news.... Nor it is scam. Zimbabwe 🇿🇼 has a great impact or contribution in bitcoin but Zimbabwe reduce its contribution, then it creates a simple hamper in bitcoin.

[Enijesiku Sulaimom]

I have thought cryptocurrencies would be a good opportunity for hyper-inflative countries to enter the world economy, but it seems most countries except Venezuala are against the idea, and would rather stay in their mess.
Not surprising, another state run by the military has banned bitcoin, because it usurps their control over the population.

[yojodojo21]

I don't really think if the given news is accurate, but i will put some opinion to it why central bank trying to stop the adaptation of crypto currency. the reason behind that news is or was handled by big families such as rothschild,rockefeller,astor, and many big persona, they have shares of stock in central bank or somebody of those guys own central bank, now, the idea of crypto is initiating from first in First world and it is  easily adopted but in third world such as zimbabwe that has debt from other countries so they don't have the choice  to accept crypto because of the banks ruler, central bank is a worldwide bank. it holds almost 1/3 of the money in whole world if i am not mistaken. But, the good news is even thou it is banned in many areas atleast Crypto is circulating it's supply which means it is really functioning.

[Doge dealer]

Putting a ban on the crypto exchanges will not severely impact the dealings in bitcoin because remember  crypo is  peer to peer without having to use any banks or financial institution what will be affected is the exchange aspect which isn't an un jumpable hurdle.This a decision that is ill advised though because what you will now find is that people will create unofficial markets to deal with the exchange and this practice is what is unsafe will put people's money at risk and might even breed criminality.

[bocyaj]

I don't know why government start their military against Bitcoin. Previously China had ban bitcoin and then South Korea. Later they announced going to regulate the bitcoin.Now Zimbabwe start their action against bitcoin.This may be unexpected one for the people in Zimbabwe. Here after they are forced to use bitcoin as asset only.

[cizatext]

I don't know how true is this information but to say Zimbabwe as a third world country banning bitcoin/cryptocurrency transactions will have little or no effect on the crypto market since their as a country can add nothing to the crypto network. But to me crypto will help grow their crippling economy and help they citizens to have a second source of income and currency.

[Nodehype]

from which region is zimbabwe?

[freesia_pnp888]

they should have reconsidered as they're having a lasting hyperinflation and this is likely one way to solve all of this

yes, i agree with you, the country is in hyperinflation and likely bitcoin comes for the rescue, and they ban?? seriously??

[goymas]

Zimbabwe’s central bank has stopped local banks from trading or processing payments linked to cryptocurrencies , but stopped short of banning local cryptocurrency trading exchanges.In the southern African nation, those who trade in bitcoin say it offers rare protection as their bank deposits lose value almost by the day while others use it to fund family members studying abroad or purchase goods online.

[pujumba]

Well this just shows that another government feels threatened by the power of the blockchain. They are only strengthening our movement without realizing it.

[stompix]

Is it true news.... Nor it is scam. Zimbabwe 🇿🇼 has a great impact or contribution in bitcoin but Zimbabwe reduce its contribution, then it creates a simple hamper in bitcoin.

It has zero of both !!!

I don't know why government start their military against Bitcoin. Previously China had ban bitcoin and then South Korea. Later they announced going to regulate the bitcoin.Now Zimbabwe start their action against bitcoin.This may be unexpected one for the people in Zimbabwe. Here after they are forced to use bitcoin as asset only.

China hasn't banned Bitcoin just went after exchnges. South Korea hasn't done either of them, they've just banned ICOs.

from which region is zimbabwe?

Really? Are you seriously asking this?

Well, it's not only happening and Zimbabwe but it is happening all over the world recently Indian Central Bank has instructed the banking sector to stop providing services to the exchanges involved in cryptocurrencies.

Two 3rd world countries is not "all over the world", and nobody gives a damn what India and Zimbabwe do.
Usually people look at what countries where citizens have running water and toilets do, nobody follows failed countries

[Roboabhishek]

This is very bad news, and Zimbabwe should not have to behave like that, because crypto currency can be used in Zimbabwean finances that are having problems with their currency.

After reading this article this seems to be as true as it sounds.
This is unfortunate for the crypto market as it removes a number of potential people that could have used crypto.
However, it is not entirely our loss (as a market), as cryptos and blockchains continue to grow rapidly they will see the benefits as other countries take it on.
This will lead them to eventually realize that it was the wrong decision to do so.

[Phildo]

Zimbabwe’s central bank issued Circular to Banking Institutions No. 2/2018: Virtual Currencies, effectively banning all crypto activity in the African nation. Businesses dealing in decentralized currencies have 60 days to comply.

Full articles: https://news.bitcoin.com/zimbabwe-bans-all-cryptocurrency-activity-businesses-have-2-month-grace-period/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications

This is just a notification letter to the bank not to transact with any other than FIAT, whether it sells Cryptocurrency, vegetable, building material, or even strollers is not allowed. The ban of Cryptocurrency usage doesn’t apply to the public or any business they have which means it won’t affect the value of Bitcoin unless there are many fools are affected with the FUD.

[Domanity]

This is bad news, bad news for Bitcoin and Cryptocurrency as well as bad news for industrial progress and people playing Cryptoxurrency in Zimbabwean country. hopefully this does not subvert the spirit of the people there to continue to hunt Bitcoin. and this will not happen again in another country, Just come to this Zimbabwe alone.