On May 13 2018, the Reserve Bank Of Zimbabwe (RBZ) issued guidelines in a circular that detailed cryptocurrency activities taking place within the country are now banned. The RBZ further stated that domestic digital currency operations had sixty days to become compliant. Local reports now reveal the Zimbabwe-based cryptocurrency exchange Golix plans to take the central bank to court for banning digital assets, as the firm emphasizes that the RBZ has no authority to ban cryptocurrencies across the country.
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Reserve Bank Of Zimbabwe Faces Legal Backlash
Last week cryptocurrency enthusiasts and businesses in Zimbabwe got some bad news as the central bank decided to . The RBZ warned about the ‘risks’ involved with cryptocurrencies and told financial institutions not to deal with digital asset businesses.
The Reserve Bank of Zimbabwe released a circular which effectively banned cryptocurrencies this month.
The ban would affect Localbitcoins trades within the region alongside the country’s three exchanges , Bitfinance, and Styx24. News.bitcoin.com with Golix representative Tawanda Kembo last month when the exchange installed a bitcoin ATM. Our newsdesk also received an email from the Golix exchange shortly after the ban.
“On Friday, the Reserve Bank of Zimbabwe issued a statement to all banks instructing them to stop providing bank accounts to cryptocurrency companies within the next sixty days,” the Golix exchange explains.
This means that unless the central bank changes its position prior to the expiry of the sixty-day window, you will not be able to send or receive fiat currencies for cryptocurrency trades.
According to the regional publication Zimeye.net, Golix is taking the Reserve Bank of Zimbabwe to the High Courts.
Golix Files a Lawsuit Against the RBZ with the High Court
Shortly after the email, the regional publication Zimeye.net that Golix was now planning to “slap a lawsuit” against the RBZ for issuing a countrywide cryptocurrency ban. Golix says they are taking the central bank to the High Court and state that the RBZ governor has no experience with managing a local currency giving him no right to ban it. The exchange argues that the central bank has no authority to ban digital currencies and only parliament has the means to make such laws.
”I submit that the ban in effect outlaws and classifies as illegal Applicant’s operations,” a Golix official said to the Zimeye publication.
The respondents are in fact purporting to classify the trade in cryptocurrency as illegal. That will amount to law making, a function that belongs to the legislature and not the respondents. Respondents are thus clandestinely usurping Parliament’s law making powers.
Golix Has Yet to Receive Instructions From Their Bank — Continues Business as Usual
News.bitcoin.com reached out to Golix for further information on this lawsuit but has yet to hear back from the exchange. According to other reports, even though the RBZ has issued a ban in its circular to banking institutions concerning virtual currencies, Golix is . “Thus far we are yet to receive instructions from our bank as to what will happen, if at all anything. Once we do, we will update,” an official from the Golix exchange detailed.
What do you think about the Golix exchange slapping a lawsuit against the Reserve Bank of Zimbabwe? Let us know your thoughts on this subject in the comments below.
Images via Shutterstock, Pixabay, and Golix.
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According to multiple reports, the Pentagon and the Defense Department are debating on whether or not cryptocurrency ownership is a problem for those who have U.S. security clearances and those applying for these privileges. The U.S. agencies may define digital currency owners as a ‘security risk’ in order to protect foreign and domestic classified information.
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If You Own bitcoin and Have U.S. Security Clearance Then You Might Have a Problem
American bureaucrats are deliberating on whether or not they should flag cryptocurrency investors who have special security clearances to classified government information. An individual who owns a cryptocurrency like bitcoin or ethereum, may be considered “risky” in the eyes of the Pentagon. This past February the Defense Security Service (DSS) and the Pentagon they were working on guidelines for reporting cryptocurrency ownership. According to another published on May 22, the debate is currently being argued and government contractors are already upset about the backlog of other security clearance issues.
A director for Financial Services Innovation at Carnegie Mellon University, Param Vir Singh, believes cryptocurrencies do have security risks.
“There are a lot of good things about cryptocurrencies, but at the same time there are these security risks,” explained Param Vir Singh this week.
Think about a knife: It could be used for good things and it can be used for bad things as well.
DSS Recommends Cryptocurrency Owners With Security Clearance Should Report Their Virtual Currency Holdings
Further, the columnist Adam Reese recently by a DSS employee named Chad M. Campbell — which indicates that the security specialist recommends individuals who apply for U.S. security clearance need to report their cryptocurrency holdings on the agency’s (SF86). Additionally, the reporter received a reply from Defense Security Service Public Affairs which stated:
“DSS has fielded a number of questions from industry as to whether ownership of cryptocurrencies, such as bitcoin, should be reported by cleared persons or security clearance applicants,” explains the Defense Department.
There is no current Department of Defense guidance related to the reporting of ownership of cryptocurrencies. DSS is working with DoD policy offices for further clarification and once such guidance is issued, DSS will ensure the widest dissemination to industry. Additionally, the email [Campbell’s email] was an internal discussion document which was not intended to serve as policy guidance.
University of California Researcher: ‘bitcoin Owners Deserve Suspicion’
Individuals and organizations see the security clearance/cryptocurrency discussion as a controversial subject as opinions differ depending on who is discussing the matter. Steve Aftergood of the Federation of American Scientists believes holding cryptocurrencies or other behaviors don’t necessarily make a person risky. “I don’t know if the government has a clear understanding of what makes a person actually a security risk — Instead they look at proxy factors like excessive debt, drug use and contact with the criminal justice system, which don’t necessarily translate to risk,” Aftergood explains.
However, a researcher at the University of California, Nicholas Weaver, disagrees and thinks digital currency holders should be suspects. “Since bitcoin’s only real use is to buy drugs, etc., it deserves suspicion,” Weaver said this week. It’s also worth noting that some of these DSS and Pentagon officials who firmly believe cryptocurrencies are a ‘security risk’ have no problem with defense contractors who shill centralized blockchains. The DSS is not calling or the company’s employees suspicious — Nope just bitcoin and public blockchains seem to be a threat at the moment.
What do you think about the DSS and Pentagon’s discussion about bitcoin classification and raising suspicion against cryptocurrency owners? Let us know in the comments below.
Images via Pixabay, DSS, and Shutterstock.
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