Golix Crypto-currencies Exchange

From Pindula
Golix
Type
Cryptocurrencies Exchange
IndustryFinancial Institutions
FoundedDecember 2014 in Harare, Zimbabwe
FounderTawanda Kembo
HeadquartersHarare, Zimbabwe
Key people
Tawanda Kembo, William Chui, Yeukai Kusangaya
Websitegolix.com

Golix is a Cryptocurrencies exchange in Zimbabwe. Golix was founded in December 2014 and was initially called BitFinance while their exchange was called Bitcoin Fundi. The company was founded by Tawanda Kembo and Verengai Mabika.

In May 2018, Golix was ordered to shut down operations by the Reserve Bank of Zimbabwe.

Cryptocurrencies Traded on Golix

  • Bitcoin
  • Litecoin
  • Bitcoin Gold
  • Bitcoin Cash

Cryptocurrency Ban and Shutdown Order by Reserve Bank of Zimbabwe

On 11 May 2018, the Reserve Bank of Zimbabwe issued a directive to Zimbabwean financial institutions prohibiting them from working with Cryptocurrency exchanges or holding any accounts of people trading in cryptos. Financial institutions were given 60 days to comply. The reason given by the RBZ was "to safeguard the integrity, safety and soundness of the country’s financial system, and to protect the public in general". The RBZ identified cryptos as including dangers and risks such as " loss due to price volatility, theft or fraud, money laundering and other criminal activities."[1]

On 15 May 2018, the RBZ wrote to Golix ordering the company to "cease all virtual currency exchange operations." The company was ordered to " to take all the necessary steps to close the cryptocurrency accounts or “wallets” of your customers and to make good any funds currently held on behalf of customers".[2]

On 21 May, it was reported that some banks had closed Golix's bank accounts and that the company was now failing to honour customers USD withdrawals.[3]

On 23 May, Golix advised its customers that it had closed its order book, the cryptocurrency exchange part of its platform.

Court Case

On 21 May 2018, Golix took the Reserve Bank of Zimbabwe to court challenging the directive to shut down the exchange. You can download Golix's application to the High Court here.

On 24 May, Golix won the High Court case against the RBZ. The RBZ did not come to the court hearing and a default judgement in favour of Golix was made, effectively nullifying the shutdown directive Golix had been issued with. [4]

References

  1. Reserve Bank of Zimbabwe Bans Cryptocurrency Trading. Banks Given 60 days To Comply (Full Statement), Techzim, Published: 12 May 2018, Retrieved: 22 May 2018
  2. Zimbabwe’s Central Bank Orders Crypto Exchange Shut Down, Techzim, Published: 21 May 2018, Retrieved: 22 May 2018
  3. Banks Close Down Golix Accounts, Techzim, Published: 21 May 2018, Retrieved: 22 May 2018
  4. BREAKING: Court Says Cryptocurrency Exchange Golix Can Resume Trading, Reserve Bank Directive Suspended, Techzim, Published:24 May 2018, Retrieved 24 May 2018'