Ethiopia to tighten oversight of cryptocurrency transactions

Muluken Yirga, senior legal adviser to ESAAMLG, expressed concern about the growing number of cases of bypassing traditional financial control systems through cryptocurrencies. According to him, international criminal networks, including terrorist groups such as Al-Shabaab, Al-Qaeda and ISIS, are finding ways to use digital assets to raise funds and transfer them, despite the existing ban on cryptocurrency trading in Ethiopia.

The head of the FIS confirmed that not all transactions with digital assets should be automatically considered illegal. However, he recalled that the Ethiopian Birr remains the official currency in Ethiopia, and any transactions with other currencies, including cryptocurrencies, are considered a violation of the law. In his opinion, regardless of the future status of cryptocurrencies in the country - legalization or continued prohibition - a well-established regulatory system is needed.

This initiative echoes the previously announced position of the National Bank of Ethiopia (NBE), which emphasized that the use of any means of payment other than Birr is a violation of the law. The regulator emphasized the inadmissibility of replacing the official currency with digital assets in settlements.

Thus, against the backdrop of a global increase in interest in cryptocurrencies, Ethiopia is taking a step towards stricter control, trying to minimize the risks associated with the financing of terrorism, money laundering and violation of currency regulations. The new rules are expected to help authorities strengthen their monitoring and suppression of illegal activities in the crypto space.