Three individuals are currently out on bond in Zambia after being
arrested over charges related to a cryptocurrency investment scheme
they had operated.
The three suspects — Hilda Agnes Raubenheimer, Orient Rio Zekko,
and Tapiwa Chirwa — are directors of cryptocurrency investment firm
Heritage Coin Resources Limited, per the Zambian Watchdog. They
allegedly collected more than 28 million Zambian kwacha (approximately
US$2.4 million) from prospective investors who were promised that
the money would be invested in cryptocurrency.
According to the Anti-Money Laundering Investigations Unit of
Zambia’s Drug Enforcement Commission, the trio collected
“K28,346,800.00 by purporting that the company was investing the
money collected as partnership fees from the public into
Cryptocurrency trade on the web on behalf of the partners when in fact
not.”
The three now face charges of engaging in money laundering activities,
obtaining money by false pretenses, participating or conducting a
money circulation scheme, and operating an unlicensed financial
business between June and mid-October.
Bitcoin Not Legal Tender
This comes less than a month since Zambia’s central bank indicated
that cryptocurrencies are not legal tender in the country, as CCN
reported.
CCN
@CryptoCoinsNews
Bitcoin is Not a Legal Tender in Zambia, Says Central Bank ccn.com/
bitcoin-is-not…
45 3:09 PM - Oct 14, 2018
41 people are talking about this
Central Bank: Bitcoin is Not a Legal Tender in Zambia
Bitcoin is not a legal tender in Zambia, clarified their central bank
in the wake of growing investment interests among the citizens.
ccn.com
While issuing the statement on cryptocurrencies, the Bank of Zambia
disclosed that it had done so in public interest after receiving
inquiries related to the legal status of bitcoin in the southern African
country:
“Cryptocurrencies are not legal tender in the Republic of Zambia;
Secondly, BoZ does not oversee, supervise nor regulate the
cryptocurrency landscape. Consequently, any and all activities related
to the buying, trading or usage of cryptocurrencies are performed at
owner’s risk,” the Bank of Zambia said in a press release.
Public Interest
At the time, the apex bank of the landlocked African country claimed
it was issuing the statement to “safeguard the interests of members
of the public and to maintain the integrity of the financial system in
Zambia.” Among the risks the bank claimed it was protecting
Zambians from included fraud and hacking attacks for which no legal
recourse is available in the country.
To its credit, however, the BoZ added that it would ensure that
regulation does “not constrain but enable innovation.”
The cryptocurrency stance of the central bank of Zambia is similar, if
not a little better, to that of its neighbor to the south, the Reserve
Bank of Zimbabwe . This is despite the country formerly known as
Southern Rhodesia having the ripe environment for cryptocurrencies as
it is not only undergoing a cash crunch but currently uses a variety of
foreign currencies including the South African rand and the US dollar.
Earlier this year, the Reserve Bank of Zimbabwe banned all commercial
banks and financial institutions in the country from processing crypto
transactions for exchanges, traders and investors. But despite the High
Court lifting the ban, crypto exchanges in the country still face
numerous obstacles .
arrested over charges related to a cryptocurrency investment scheme
they had operated.
The three suspects — Hilda Agnes Raubenheimer, Orient Rio Zekko,
and Tapiwa Chirwa — are directors of cryptocurrency investment firm
Heritage Coin Resources Limited, per the Zambian Watchdog. They
allegedly collected more than 28 million Zambian kwacha (approximately
US$2.4 million) from prospective investors who were promised that
the money would be invested in cryptocurrency.
According to the Anti-Money Laundering Investigations Unit of
Zambia’s Drug Enforcement Commission, the trio collected
“K28,346,800.00 by purporting that the company was investing the
money collected as partnership fees from the public into
Cryptocurrency trade on the web on behalf of the partners when in fact
not.”
The three now face charges of engaging in money laundering activities,
obtaining money by false pretenses, participating or conducting a
money circulation scheme, and operating an unlicensed financial
business between June and mid-October.
Bitcoin Not Legal Tender
This comes less than a month since Zambia’s central bank indicated
that cryptocurrencies are not legal tender in the country, as CCN
reported.
CCN
@CryptoCoinsNews
Bitcoin is Not a Legal Tender in Zambia, Says Central Bank ccn.com/
bitcoin-is-not…
45 3:09 PM - Oct 14, 2018
41 people are talking about this
Central Bank: Bitcoin is Not a Legal Tender in Zambia
Bitcoin is not a legal tender in Zambia, clarified their central bank
in the wake of growing investment interests among the citizens.
ccn.com
While issuing the statement on cryptocurrencies, the Bank of Zambia
disclosed that it had done so in public interest after receiving
inquiries related to the legal status of bitcoin in the southern African
country:
“Cryptocurrencies are not legal tender in the Republic of Zambia;
Secondly, BoZ does not oversee, supervise nor regulate the
cryptocurrency landscape. Consequently, any and all activities related
to the buying, trading or usage of cryptocurrencies are performed at
owner’s risk,” the Bank of Zambia said in a press release.
Public Interest
At the time, the apex bank of the landlocked African country claimed
it was issuing the statement to “safeguard the interests of members
of the public and to maintain the integrity of the financial system in
Zambia.” Among the risks the bank claimed it was protecting
Zambians from included fraud and hacking attacks for which no legal
recourse is available in the country.
To its credit, however, the BoZ added that it would ensure that
regulation does “not constrain but enable innovation.”
The cryptocurrency stance of the central bank of Zambia is similar, if
not a little better, to that of its neighbor to the south, the Reserve
Bank of Zimbabwe . This is despite the country formerly known as
Southern Rhodesia having the ripe environment for cryptocurrencies as
it is not only undergoing a cash crunch but currently uses a variety of
foreign currencies including the South African rand and the US dollar.
Earlier this year, the Reserve Bank of Zimbabwe banned all commercial
banks and financial institutions in the country from processing crypto
transactions for exchanges, traders and investors. But despite the High
Court lifting the ban, crypto exchanges in the country still face
numerous obstacles .
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