After facing the major collapse of banks on cryptocurrency in Nigeria and Kenya, Crypto users in Africa face another stressing news of the crypto ban in Zimbabwe. The country was progressing at a rapid speed by rich cryptocurrency trading and making excellent profits. But, the government of Africa had different plans for the country.
On 11th may, 2018, the reserve bank of Zimbabwe issued a public notice that mentioned the prohibition on cryptocurrency use all over the country. However, the crypto businesses still don’t believe the ban is an official sign from the government and are trading cryptocurrency. But, the use of cryptocurrency in the country is regulated and prohibited for the time being.
Zimbabwe has always faced massive high-inflation but recently the inflation rate in Zimbabwe reached a peak of 175 percent. That is why the government paid attention to the increasing crypto use that has led to severe causes of inflation in the country. While the legality of cryptocurrency in Zimbabwe is still a cause of confusion in the country but the measures taken by the governments direct to the inhibition of crypto use in Zimbabwe.
From making huge profits by trading bitcoin to mining other cryptocurrencies, Zimbabwe has always been a step forward in making the best use of digital cryptocurrencies to fight the country’s economic crises. To discuss in detail, the article has summed up all the significant information regarding the crypto ban in Zimbabwe.
- On following the orders from the central bank, all the local Zimbabwe banks restricted sending or receiving payments related to cryptocurrency. This was a huge setback for crypto investors who preferred storing their money in banks to lower the risk of losing.
- Since Zimbabwe tops the list of countries for excessive use in cryptocurrency. Therefore, it has a high number of crypto exchanges like Bitcoin Prime that assist investors to receive high-profitable exchanges for their cryptocurrency. However, under the regulation of cryptocurrency, numerous crypto-exchange services had their licenses canceled due to dealing with cryptocurrency.
- We all know that cryptocurrency works on a safe, transparent, and independent peer-peer decentralized platform that doesn’t require any personal details to use cryptocurrency. However, this benefit of digital currency promoted numerous money laundering and illegal crypto use in the country. That is why the Zimbabwean government regarded cryptocurrency as a serious threat to the country’s economy in the future.
- This ban on cryptocurrency use also enforced serious limitations on crypto users. It also acknowledged crypto users of the possible circumstances they might run into on dealing with cryptocurrency. The notice clearly mentioned that there will be zero protection or help provided in case the government takes over all the money from the account of a crypto user.
- Like in other parts of Africa, the Government of Zimbabwe (GOZ) also declared cryptocurrency as a form of security or property that’s meant to be taxed. Therefore, every crypto user must mention every crypto activity in the tax statement provided to the bank. Through this, the GOZ was able to analyze the profits and losses from cryptocurrency and inferred ban after detailed discussion with other legal officers.
While countless investors are openly trading crypto while living in Zimbabwe. Whereas, many of them have closed their crypto accounts to obey government law and order. It would be wrong to state that cryptocurrency is completely banned in Zimbabwe as the government itself accepts the success rate of cryptocurrency in the country.
Now, either the government of Zimbabwe will entirely suspend the use of cryptocurrency within the boundaries or will let people benefit from it by following some rules and regulations. Whatever the case may be, it is for sure that cryptocurrency has a lot more potential to help Africa escape from poverty and look towards a better quality of life in Zimbabwe.