Zimbabwe’s Crypto Exchange Golix Urges Clients To Withdraw Funds

Despite the temporary court relief, Golix is not sure when and how its bank accounts will be reopened and when it will be able to resume normal operations.

by Nina Dimitrova
30 May • 2 mins
In News

Golix, Zimbabwe’s largest and most popular cryptocurrency exchange, has urged its clients to stop depositing funds and withdraw their proceeds in an official e-mail on Tuesday.

The advice comes in light of last week’s ruling of Zimbabwe’s High Court that lifted the ban on domestic banks to process payments related to cryptocurrencies from mid-May and the subsequent closing of all bank accounts of Golix. The exchange then took the Reserve Bank of Zimbabwe (RBZ) to court contesting the decision and won at least a temporary respite in the form of an interim relief.

Facing an uncertain future for its normal operations and with OTC trading currently suspended, Golix warned its clients that the court case is still ongoing and the High Court ruling does not guarantee the ban will stay lifted.

“It’s important for us to emphasize that the court case is still ongoing and this interim relief is only valid until the outcome of the case is determined in court,” Golix told its clients, as quoted by the Zimbabwean news outlet TechZim.

Besides, Golix notes, the interim relief does not guarantee that the exchange will have its bank accounts reopened and it is still working on this. For this reason, Golix is still unable to process all client withdrawal requests as fast and as usually and has to negotiate with the banks to send the client funds.

“Customers can start processing withdrawals but only on specific dates,” Golix said at the end of the e-mail.

The bank problems also mean that if clients make deposits to Golix’s bank accounts, the exchange might need weeks to recover them and return them to the clients.

Considering all this, Golix advises that clients initiate a withdrawal of their crypto and/or fiat funds "right now".

Bitcoin and some other cryptocurrencies, to a lesser extent, are very popular in Zimbabwe, whose fiat currency, the Zimbabwean dollar, was officially demonetized in 2015 after years of monstrous hyperinflation.

zimbabwean dollar small

Now, the official currency in the country is the USD, but other fiat currencies are used as well. Zimbabweans, however, continue to have a constant fear of further hyperinflation and economic turmoil and are seeking an asset to invest in.

Last year, during the military coup that deposed Zimbabwe’s long-time president Robert Mugabe from power, Zimbabweans turned their attention to Bitcoin and started converting their savings into it. This lead to soaring interest and prices for Bitcoin in Zimbabwe, where the prices of the digital coins are much higher than on the global market.