Zimbabwe bans the processing of virtual currencies by financial institutions
On 11 May 2018, the Reserve Bank of Zimbabwe (RBZ) published Circular to Banking Institutions No. 2/2018: Virtual Currencies (the Circular). The Circular provides that:
“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:
- 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.”
In terms of the Circular, 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”.
The Circular is accessible here.
Please note: The information contained in this note is for general guidance on matters of interest, and does not constitute legal advice. For any enquiries, please contact us at [email protected].