In Africa, some of the governments are starting to take hard steps against cryptocurrency bitcoins and the firms in the crypto world. Regulators in Zimbabwe have shut down two of the cryptocurrency exchanges in their country with the aim to stop the trading of cryptos activities. Bitcoin users can exchange their virtual currencies using the global known messaging application which is called WhatsApp.
Even Kenya has also warned banks and the other individuals who are involved in the trading activities. But this is not sufficient to reach their goal of stopping the crypto world from growing.
Jack is a cryptocurrency user, and the worker has decided to quit his work in the city of Harare which is the capital of Zimbabwe. He was working in an exchange of cryptocurrency in the Zimbabwean capital. The situation in the country was getting tough. The country’s financial regulator decided to ban all the cryptocurrencies by restricting the users from selling and purchasing the cryptocurrencies.
He keeps with his job by helping users to sell and buy virtual cryptocurrencies through the Application WhatsApp. He works by linking sellers and the buyers of the bitcoins and placing auctions, bids and the selling the orders on different WhatsApp groups. After he finds a match, he connects the users in a private chat. After that, the deal will be over.
Jack charges almost 5 percent commission for this services. This is slightly above the average fees which are paid while trading virtual currencies in some of the exchanges. But it allows users to continue trading in a country that has been taken hard steps against cryptocurrencies.
The Reserve Bank of Zimbabwe has shut down the two most important cryptocurrency exchanges in the nation. The two cryptocurrencies are Golix and the Styx24. According to the institution, the exchanges were violating Exchange Control regulations. It was offering unlicensed services of banking.
The trade takes place on WhatsApp in different groups. Several groups can include traders, users, and other investors. They can even share some of the important information about the market of crypto. They are establishing confidence in the market.
Users in Zimbabwe pay a premium for each of cryptocurrency for what they purchase. These people have to pay 13721 dollars in their country for a BTC. That is more than a double the actual price of Bitcoin, which is of 6600 dollars.
Even, this is the situation in Kenya, where bitcoin transfers through WhatsApp are expanding quickly. This bitcoin rate is associated with the low price which is circulating in the market. It is possible to make the payments with paper notes, bank transfers, and the coins. And also a few lucky users can buy Bitcoins internationally and can sell them in the local country through third person agents.