The short answer is it is not illegal. The way I take Bitcoin is that it’s a complicated entity that can be perceived either as a currency or as a commodity and it will be on this take on bitcoin upon which this blog will be based. Technically speaking however virtual currencies such as bitcoin are defined as a digital representation of value that can be digitally traded and function as a medium of exchange, a unit of account and/or a stored value.
Zimbabwe has since the introduction of the multi currency regime recognised nine foreign currencies as legal tender. Admittedly Bitcoin is not on that list so its not legal tender in Zimbabwe. Be that as it may it’s not against the law to have bitcoins in your possession. A few business entities have dabbled with the receiving payments in bitcoins and they have not faced any sanction because its well within their rights to accept payment in the manner they chose as long as they are not infringing existent laws in Zimbabwe in which case they were not.
For the record the Zimbabwean Government through the Central Bank has not issued a public statement on bitcoin. I am saying this alive to the fact that there is a circular issued by the Bank Use Promotion and Suppression of Money Laundering Unit directed to bankers. Coupled with the fact that the circular is directed to financial institutions and that the only public remark was by a director at a conference I have to respectfully contend that the RBZ has not made an official pronouncement to the public of Zimbabwe on its take on this innovation in the financial sector. And so from a policy position there is no exclusionary position in existence relating to transacting with and/or possessing bitcoins
So unlike some African nations like Kenya, South Africa and Nigeria were there have been official positions adopted ranging from cautionary statements to indication of intended regulation, Zimbabwe is not only quite but does not have laws and regulations that specifically deal with this technology and I am not complaining. For any act or thing to be illegal in Zimbabwe there must be a law that says it’s as such. So we are able to say stealing is illegal in Zimbabwe because the Criminal Code in Zimbabwe says stealing is a crime. With regards to bitcoin since there is no law that specifically precludes this type of currency or technology it is legal to possess or trade in this currency/commodity. Unfortunately this means there is no regulatory supervise and guidance delving in this new technology is at one’s own risk.
Like I stated earlier bitcoin can be viewed as a commodity. A commodity can act as a store of value and is able to transmit value as long as trading parties agree to it. In that regard its like modern day barter trade (matrix style). So if I got a car and I want to sell it and am willing to be paid in bitcoins and the buyer tender the agreed bitcoins to me we would have essentially swapped commodities -a car for virtual commodity. The question is whether this is illegal again my answer is NO. As Zimbabweans if there is one transaction we are all familiar with is the “swap and top up” this is more or less the same save for the “top” part. So that is the alternative take on the legality of this technology, which yields the same answer
Returning to the currency aspect I have contended that bitcoin can be viewed as a foreign currency in terms of the existent laws of Zimbabwe , this view point is further heightened by the fact that not only has Germany recognized it as money as provided for its laws but Japan has also recognised virtual currencies like bitcoin as legal tender. Applying the definition that foreign currency note or coin means any currency other than Zimbabwean currency, which is legal tender in a country other than Zimbabwe, it can be argued that for all intents and purposes bitcoin is a foreign currency in Zimbabwe. In light of this I am persuaded to argue that existent laws and regulations applicable to foreign currencies in Zimbabwe can to some extent be applied as a means to regulate bitcoin based ventures in Zimbabwe. In so saying I believe that we can draw from the laws meant to govern Anti money Laundering in Zimbabwe that are drawn from the FATF Recommendations. The way I see it is that we can apply the existant laws as well as incorporate the subsequent recommendations the FATF has made on virtual currencies to ensure that we have a regulated bitcoin environment in Zimbabwe. It follows that the regulation we have in mind which is less complicated and easily achievable is the regulation of participants or businesses in the sector and not the actual blockchain and bitcoin. My contention therefore is treat bitcoin as a currency and regulates the companies that deal with it.
So essentially as it currently stands it is acceptable in Zimbabwe as there is no legal impediment to the use and possession of bitcoins.