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Reserve Bank of Zimbabwe Issues Ban on Cryptocurrencies to ‘Protect the Public’

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Zimbabwe’s central bank (RBZ) has banned the transacting in and trading of cryptocurrencies.

 The ban — which applies to all financial institutions —  was put forth by the RBZ registrar of banking institutions, Norman Mataruka, in a circular yesterday. The reason for the move was to protect the public and safeguard the integrity and safety of the country’s financial system, he said.

Reserve Bank of Zimbabwe Bans Cryptocurrencies

Mataruka also specified that accepting cryptocurrencies as collateral, opening accounts at cryptocurrency exchanges, and the transfer or receipt of money in accounts relating to digital currencies are also prohibited.

“As monetary authorities, the Reserve Bank of Zimbabwe is the custodian of public trust and has an obligation to safeguard the integrity of payment systems,” Mataruka said. “Cryptocurrencies have strong linkages and interconnectedness with standard means of payments and trading applications and rely on much of the same institutional infrastructure that serves the overall financial system.”

The moves by the RBZ were further outlined in a separate statement made by John Mangudya, the bank’s governor, who issued a warning to the public about trading in the coins, according to NewsDay. Mangudya also stated that the BitFinance exchange (who operate the largest local exchange, Golix) is not licensed or regulated by the institution.

“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,” Mangudya said.

“The Reserve Bank of Zimbabwe has not authorised or licensed any person or entity or exchange for the issuance, sale, purchase, exchange or investment in any virtual currencies/coins/tokens in Zimbabwe. Exchanges such as BitFinance (Private) Limited (Golix) and Styx24 are not licensed or regulated by the Reserve Bank.”

Mangudya added that the RBZ would continue to monitor both regional and global cryptocurrency developments in order to inform policy direction moving forward.

In the nearer future, the individuals and financial institutions that are currently trading cryptocurrencies have been given 60 days to cease operation and terminate relationships. The RBZ has not yet made it clear what action(s) will be taken if institutions do not comply with the directive, or if there will be any exceptions to the new policy.

The Importance of Cryptocurrencies in Africa

The moves by Zimbabwe’s central bank are particularly unfortunate for local cryptocurrency users, as many of Africa’s underbanked population use the coins to pay for transportation, buy food, and top-up cellphones. It seems to be an attempt at consolidating power, as the decentralized nature of cryptocurrencies has allowed them to become alternatives to weak, local fiat currencies that are facing rampant inflation.

The remittance market in Africa — worth $429 billion worldwide in 2016 — is also tied in with cryptocurrencies and associated blockchain technology. Already the continent has some of the highest remittance costs in the world, and it would seem likely that the cryptocurrency ban will only make things worse.

“It’s so hard to send money from Nigeria to Zimbabwe, or from the United States to Sudan,” West African entrepreneur Olaoluwa Samuel-Biyi said. “Banks are very tedious and payment companies generally exploitative, he added. “There’s heavy discrimination, definitely. We have to go all around them to succeed. Bitcoin is technology that allows financial inclusion.”

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Thai Crypto Scene Still Reeling From Top Exchange Bailout

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Thailand’s vibrant digital asset scene was shaken earlier this month when its most popular exchange unexpectedly announced an imminent closure. The news left crypto traders dazed and confused and fearing a wider crackdown from the military dominated government.

A Dark Day For Thai Crypto

September 2 was a dark day for the crypto industry in the Asian nation as its most popular exchange told clients they had a month to clear out their accounts. The only explanation BX Thailand gave to its large customer base was that it wanted to ‘focus on other business opportunities’, which made little sense since the SEC registered exchange was clearly successful.

The panic that ensued caused the price of Bitcoin to trade at ten percent lower than the rest of the world on the exchange as Thai traders dumped digital assets. BTC price dropped as low as $9,000 on BX as fears of a failure to liquidate escalated.

Two weeks later and the situation is still no clearer. The company has yet to come forward with any real reasoning for the move and attempts to reach management have been unsuccessful according to the Bangkok Post.

Bitcoin Co. was launched in 2013 and a year later bx.in.th was created to provide a trading platform for crypto assets. The firm was a pioneer in the industry at the time and one of the first to become officially authorized by the Finance Ministry.

Speculation has grown over the snap closure and competing platforms suggest that BX may have been bamboozled by bureaucracy. Specifically, an unfeasible level of daily transaction reporting required by regulators.

Founder of Satang Corporation Co., Poramin Insom, suggested that the company just may not have been prepared for this epic workload or what it considered client privacy violations.

“BX [Bitcoin Co] may be worried about providing customer information and trading information to the SEC on a daily basis,”

Competition in the Kingdom has increased and rival platform Bitkub chief executive, Jirayut Srupsrisopa, suggested that this may have been the cause. However, this is very unlikely though since BX was already the market leader, and they do not usually just shut up shop because of a new exchange or two opening up.

President and chief executive at the ACIS Professional Centre, Prinya Hom-anek, believes more clarity is required from regulators.

“We need market surveillance like the stock exchange has. There will definitely be future revisions [of the digital asset royal decree]. This is a case study, watched closely by global actors, for the SEC’s next move,”

Yet again, regulation and excessive bureaucracy appears to have been the catalyst for another crypto closure. Thailand’s newly appointed military backed government has an unhealthy obsession with reporting and officialdom. The regime has recently implemented a country wide crackdown on the movements of its large expatriate community which has sent many of them packing.

If crypto exchanges are its next target, BX will not be the first to close its digital doors or seek friendlier climes.

Source: newsbtc

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Crypto Market And Bitcoin Holding Support: BCH, Litecoin, EOS, XLM Analysis

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  • The total crypto market cap is holding the main $250.0B support area, with positive signs.
  • Bitcoin price could recover as long as it is above the $10,000 support area.
  • Litecoin (LTC) price is eyeing an upside break above the $73.00 and $75.00 resistances.
  • Bitcoin cash price is currently consolidating above the key $300 support area.
  • EOS price is trading in a range above the $4.000 support, with bullish signs.
  • Stellar (XLM) price is likely to make another attempt to surpass the $0.0600 resistance.

The crypto market cap is showing positive signs, while bitcoin is correcting. Ethereum (ETH), LTC, ripple, bitcoin cash, EOS, TRX, and stellar are likely to head higher.

Bitcoin Cash Price Analysis

Bitcoin cash price settled above the key $300 support area recently against the US Dollar. The BCH/USD pair even surpassed the $305 resistance and it is currently consolidating gains. An immediate resistance is near the $315 level, above which the price could even break the $325 resistance.

On the downside, the key supports are near $302 and $300. If there is a bearish break below $300, the price could start a fresh decline to $285 in the near term.

Litecoin (LTC), EOS and Stellar (XLM) Price Analysis

Litecoin price is holding the $70.00 support area and it is currently showing positive signs. LTC price may soon attempt to break the $73.00 and $75.00 resistance levels. The next important resistance is near the $82.00-83.00 zone. On the downside, the main support is near the $70.00 level.

EOS price climbed above the $3.850 and $4.000 resistance levels to move into a positive zone. The price is currently consolidating gains and it could continue higher if it breaks the $4.150 resistance. On the downside, a break below $4.000 might call for a correction towards $3.850.

Stellar price is slowly rebounding from the $0.0570 support area. However, XLM price is facing a strong resistance near the $0.0600 level. If there is a successful break above $0.0600, the price could start a strong recovery towards the $0.0625 and $0.0650 resistance levels.

Bitcoin Crypto Market Cap ETH XRP BCH LTC EOS TRX ADA BNB

Looking at the total cryptocurrency market cap 4-hours chart, there was a downside correction recently from the $260.0B resistance level. However, the decline found support near the $255.0B level and a connecting bullish trend line. It seems like there is a strong support forming near the $255.0B and $250.0B levels. On the upside, a break above the $260.0B resistance level could start another rise towards the $280.0B resistance area. Conversely, a break below the $250.0B support area might ignite bearish moves in bitcoin, Ethereum, EOS, litecoin, ripple, XLM, BCH, ADA, BNB, TRX, ICX, and other altcoins in the coming sessions.

Source: newsbtc

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Crypto Futures Giant Fight Continues: BitMEX Blames Binance For Copying (Take Two)

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The plagiarism saga between BitMEX and Binance, perhaps the two most prominent cryptocurrency exchanges in today’s market, keeps going with full force. After Changpeng Zhao tweeted that a certain market maker has tried to attack their futures platform and no one got liquidated because of their “innovation”, citing their liquidation policy, the CEO of BitMEX, Arthur Hayes, responded immediately that he’d give him a Copy/Paste course for 51% of his equity.

BitMEX’s Arthur Hayes Strikes Again

Earlier today, the CEO of the world’s leading cryptocurrency exchange, Changpeng Zhao, revealed that their relatively new futures platform was under attack by a market maker. Fortunately, however, no one got liquidated.

Zhao revealed that the reason for this is that they “use the index price (not futures prices) for liquidations,” calling this methodology their “innovation.”

What followed was a wave of comments that this is, by no means, Binance’s innovation as BitMEX has had its liquidations tied to the index price for a long time.

Naturally, the CEO of BitMEX, being the persona that he is, didn’t wait for too much to comment on the matter.


Zhao responded to his tweet, saying that his tweet was, indeed, misleading “in the way it was written.” He explained that he didn’t mean to call the index price liquidation methodology their innovation.

Not so long after that, the official Twitter account of BitMEX posted that it’s “great to see traders on other exchanges being protected and benefitting from our innovation.” Regardless of the intention, this tweet definitely seems particularly targeted.

How It All Started

The entire back-and-forth tweet exchange between two of the most prominent individuals in the entire cryptocurrency space, namely Arthur Hayes and Changpeng Zhao, began earlier this month.

As Binance announced the launch of two futures testnet platforms and acquired a crypto-asset derivatives platform, intending to launch cryptocurrency futures, options, and other derivatives, it also created a separate page on Auto Deleveraging.

As it turned out, however, the content within that page was entirely plagiarized by the same page which already existed on BitMEX.

Back then, Zhao said that he is sorry about this mistake and that it has been missed in the due-diligence process before the acquisition of the derivatives platform.

Regardless of whether or not the face-off between Hayes and Zhao has any actual implications on the market, it’s definitely refreshing and, as one user had pointed out, it takes some of the attention away from the constantly ongoing Bitcoin v. Ethereum debate.

Source: .cryptopotato:

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