The National Bank of Ethiopia prohibits all virtual asset transactions without a license.
Written by: Ayman Ragab
The National Bank of Ethiopia has announced that the use, purchase, sale, exchange, transfer, trading, settlement, and facilitation of transactions involving virtual assets are prohibited, unless expressly authorized under the current legal framework.
The bank explained in a statement issued over the weekend that “the ban includes all forms of virtual assets, not just cryptocurrencies,” noting that the decision extends to all digital representations of value that can be traded, exchanged, or used electronically for payment, investment, or similar purposes.
Prevent any transactions or activities related to virtual assets
The statement added: “Therefore, the National Bank of Ethiopia advises members of the public to refrain from engaging in any transactions or activities related to virtual assets, and to avoid exposure to significant risks, including legal consequences, fraud, scams, cyber threats, operational failures, market manipulation, and substantial losses.”.
The bank first announced restrictions on bilateral transactions between individuals in February of this year. However, the state has provided energy infrastructure for large-scale Bitcoin mining, with the aim of generating foreign currency.
According to the National Bank of Ethiopia, prohibited activities include exchanging virtual assets for fiat currency or other virtual assets, transferring virtual assets, providing custody or related administrative services, as well as providing financial services related to the issuance or sale of virtual assets.
economic reforms
The bank also spearheaded the implementation of macroeconomic reforms introduced in July 2024, most notably the adoption of a market-based foreign exchange system, a measure that led to what prominent economists described as a “free fall of the Ethiopian currency.”.
The National Bank of Ethiopia has maintained a cautious stance towards cryptocurrencies and other digital assets, emphasizing that transactions involving these instruments fall outside the country’s approved financial system unless they have explicit approval from the central bank.
