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Despite the global rise of blockchain technology and decentralised finance (DeFi), the Reserve Bank of Zimbabwe (RBZ) has maintained a firm position against cryptocurrencies, citing risks such as money laundering, fraud, and financial instability.
Zimbabwe’s stance on cryptocurrency has been clear since 2017. Trading in digital assets is not only discouraged but also unprotected by law.
But what happens when a Zimbabwean investor falls victim to cryptocurrency theft?
The answer, as revealed by legal experts and regulatory statements, is victims have no legal recourse.
By Gamuchirai Mapako
Speaking at the 2025 Cyber fraud summit Pride Chaipah of the FIU , touched on Zimbabwe’s regulatory landscape for cryptocurrencies, analysing the implications of the RBZ’s warnings, and the real-world consequences for individuals who lose their digital assets to theft or fraud.
In a 2017 press statement and subsequent 2018 circular, the RBZ explicitly warned the public against trading in cryptocurrencies, emphasising that digital currencies like Bitcoin and Litecoin do not have legal tender status and are not protected by law and a few years later, their position still stands.
“The Reserve Bank wishes to reiterate that virtual currencies or cryptocurrencies such as Bitcoin and Litecoin do not have legal tender status as they are neither issued by the Reserve Bank nor guaranteed by the government,” read the press statement
Cryptocurrencies are neither issued nor backed by the government or the RBZ and platforms like Golix (Bitfinance) and Styx24 operate without regulatory approval.
Financial institutions were ordered to sever all ties with crypto exchanges within 60 days. The RBZ stated that anyone trading cryptocurrencies does so at their own risk with no recourse to regulatory authorities.
The 2018 circular to banking institutions reinforced this stance, prohibiting banks from facilitating crypto transactions, maintaining accounts for exchanges, or processing crypto-related payments.
The RBZ cited several concerns like money laundering and terrorism financing. Cryptocurrencies’ pseudonymous nature makes them attractive for illicit activities. The statement added that cryptocurrencies can be used to facilitate tax evasion as well as externalisation of funds in violation of a country’s laws.
While these concerns are valid, the outright ban rather than regulation has left Zimbabweans vulnerable when things go wrong.
When a Zimbabwean loses money in a bank heist, they can report the crime to the police and potentially recover funds through insurance or legal action. But when cryptocurrency is stolen, the law offers no protection.
At the 2025 Cyber Fraud Summit, cybersecurity enthusiast Mr. Chaipah explained, the Zimbabwean laws don’t recognise crypto as property, so victims can’t legally recover stolen funds. Criminals exploit this, laundering coins through untraceable wallets.
Zimbabwe’s outright ban on cryptocurrencies has not stopped trading it has only pushed it underground, leaving victims of theft with no legal protection. While the RBZ’s concerns about fraud and financial instability are valid, the lack of progressive regulation harms consumers more than it protects them.
As Mr. Chaipah noted in his summit presentation,
“The future of finance is digital, and Zimbabwe must adapt or risk being left behind.”
For now, cryptocurrency investors in the country remain at the mercy of an unregulated, high-risk market with no safety net when things go wrong.
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