Governments in Africa simply cannot stop an idea whose time has come. In Zimbabwe, financial regulators banned cryptocurrency trading, and shut down two exchanges, thinking to have killed the ecosystem, only for Bitcoin to find a new life on Whatsapp. Kenyan authorities have sounded tough on virtual currency, warning banks and individuals against trading such, but the local cryptosphere continues to flourish, both on social media and on centralized exchanges.
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P2P Whatsapp Market Defies Regulatory Bans and Shutdowns in Africa
Jack (not his real name) quit his job at a digital currency exchange in Harare after Zimbabwean financial regulators effectively banned cryptocurrencies in May. Today, he still helps make things happen – just not on the exchange, but on Whatsapp.
“I don’t buy (cryptocurrency). I have buyers who buy,” Jack told news.Bitcoin.com. He connects buyers and sellers of bitcoin by placing bids and sell orders on various Whatsapp groups, before inviting interested parties to a private chat to close the deal.
Jack, who charges a 5% commission for his services – slightly above the average levied by exchanges while they still functioned – represents the new face of cryptocurrency trading (bitcoin largely) in Zimbabwe.
Bitcoin trades have gone underground or shifted to social media since the Reserve Bank of Zimbabwe (RBZ) shutdown the country’s only two digital currency trading platforms, Golix and Styx24, in May on allegations of violating Exchange Control regulations and of offering unlicensed banking services.
But cryptocurrency trading did not die with the ban. Instead, it reinvented itself on Whatsapp, through peer-to-peer trades. Over time, crypto enthusiasts have built strong Whatsapp groups where they share information and news on developments taking place in the sector. Now, they are
