Crypto News Flash #163: Zimbabwe's Central Bank Prohibits Financial Institutions From All Crypto Dealings!!
Well, some FUD's have again started to circle around the crypto space. These FUD's are basically related to crypto banning in some countries.
Last month, Indian Central Bank (Reserve Bank of India) banned all the financial institutions to deal with any crypto-related business within the domestic borders. With this announcement, BTC price tanked in India's crypto exchanges almost by 50% as compared to International crypto exchanges. Although, various crypto related start-ups have already filed petitions against RBI in Supreme Court, but the final decision is still due. RBI had give 3 month period to all the Financial institutions to sever their connections with any crypto-related business.
Now, the same decision has been announced by Zimbabwe's Central Bank.
Zimbabwe's Central Bank has recently banned all the domestic financial institutions from dealing in cryptocurrencies. According to the sources, the Reserve Bank of Zimbabwe’s (RBZ) director and registrar of banking institutions Norman Mataruka issued a circular on Friday ordering all financial institutions to stop providing all the services to cryptocurrency exchanges within 60 days and begin to liquidate existing crypto-related accounts.
Moreover, all the Financial Institutions have been directed not to hold, trade or sell any cryptocurrencies. This applies to individuals as well as businesses.
The reason being for this ban is that Reserve Bank of Zimbabwe has an obligation to safeguard the intergrity of payments systems which is not possible in case of cryptocurrencies. Bank is not prepared to make policies which can regulate crypto payments.
Reserve Bank of Zimbabwe's Governor also issued this specific statement to general public:
“Any person who buys, sells, or otherwise transacts in cryptocurrencies, whether online, or otherwise, does so at their own risk and will have no recourse to the Reserve Bank or to any regulatory authority in the country.”
Basically, RBZ doesn't want anyone to deal in cryptocurencies whether its an individual or business entity. This might increase problems for the widespread use of cryptocurrencies across the Globe.
Various countries are directly trying to ban cryptocurrencies while not considering regulate the crypto space will be detrimental for cryptocurrency future.
Let's see how Zimbabwe's population takes this decision.
Thanks for reading ...!!
First they ignore it. Then they laugh at it. Then they try to ban it. Then they join it. But no one said how long it will take.