Zambian Central Bank Says Bitcoin Is Illegal Tender

Zambian Central Bank Says Bitcoin Is Illegal Tender

The Zambian central bank recently announced that cryptocurrencies such as bitcoin are not legal tender. It also cautioned that individuals involved in such type of transactions will have no one to blame in case of a market failure. It seems that the bank had to take an action and issue this statement because it is a conventional issuer of the depreciating regional fiat unit called kwacha and owns a responsibility for promoting its own currency.

The Bank of Zambia (BoZ) realizes that it does not possess any power or legal support for closing down the growing cryptocurrency market in the Southern African country. The bank might need the help of parliament for amending the law that allows its establishment for BoZ to be able to gain any right over cryptocurrency trading or investments. Chibamba Kanyama, a Zambian economist, stated in an interview with news.Bitcoin.com that the bank does not have any legal provision to regulate the digital currency market.

On a similar note, Bithumb, South Korea’s biggest cryptocurrency exchange by trading volume, came into the news as it was sold to a Singapore-based consortium. According to the latest reports, the deal was finalized for about 400 Billion Won. Reportedly, BK Global Consortium is supposed to own the firm. Last week, Bithumb spokesperson confirmed that the latest deal was completed for approximately $354 Million to a business group led by a plastic surgeon.

Kim Byung-gun, blockchain platform investor and plastic surgeon, is the leader of BK Global Consortium. Reportedly, Byung-gun signed a contract last week. According to this contract, BTC Holdings, which presently holds 76% of Bithumb’s equity, has decided to sell 50% + 1 share of that 76% shares to BK Group for about 400 Billion Won. This deal is supposed to make BK Global Consortium the biggest Bithumb’s stakeholder.

Lawrence McAlpine

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