WhatsApp Bitcoin Trading Is Taking New Shape In Africa After Hard Measures Against Cryptocurrencies And Exchanges By Governments

in #bitcoin6 years ago

Some government regulators in Africa have started implementing hard measures against Cryptocurrencies and exchange platforms, and some countries have already shut down crypto exchanges that are operating there. Recently in Zimbabwe, regulators have shut down two crypto exchanges with an intention of stopping cryptocurrency trading activities.

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However, this measures are not stopping bitcoin users from making trades. In Zimbabwe, bitcoin users are now using the messaging app WhatsApp to purchase and sell their Cryptocurrencies. This system has been pioneered by a former employee in one of the exchanges after financial regulators banned Cryptocurrencies restricting users from purchasing and selling of crypto.

How The System Works?
WhatsApp bitcoin "brokers" work by connecting buyers and sellers of the crypto, and placing bids and sell orders on different Whatsapp groups.

After a matching order is found, they connect the traders in a private chart and then the deal is closed.

These brokers usually charge 5% commission for the services, which is slightly above the average fees charged while trading on some crypto exchanges.

But at least this allows users to continue trading in countries where financial regulators are against crypto related activities.

Recently Zimbabwe banned two crcrypto exchanges, Golix and styx24.