The National Bank of Ethiopia has prohibited peer-to-peer crypto currency trades denominated in birr as it develops a formal regulatory framework for digital assets.
In a notice issued Friday, the National Bank of Ethiopia (NBE) said birr-paired P2P arrangements on trading platforms, exchanges, or similar services are not permitted unless explicitly authorised. The ban covers all birr-denominated P2P crypto transactions.
The NBE cited multiple risks, including high price volatility, potential foreign exchange manipulation, fraud, and operational vulnerabilities. It also noted the absence of anti-money laundering and counter-terrorism financing safeguards, standard requirements for licensed financial institutions.
Ethiopia maintains strict foreign exchange controls. The birr is not freely convertible, and cross-border capital movements are closely monitored to protect external reserves and maintain financial stability.
The central bank pointed to international cases in which P2P platforms and crypto exchanges encountered financial or technical difficulties, sometimes limiting user access to funds, highlighting the potential risks for local investors.
The Bank stated that it is actively working toward establishing a comprehensive regulatory framework that will enable safe and orderly participation in emerging digital asset technologies.
This effort includes ongoing consultations with international peer regulators and domestic stakeholders to ensure alignment with global best practices, while preserving financial stability and the integrity of the national payment system.
Until such a framework is formally introduced, the National Bank reiterated that Birr-paired P2P crypto currency transactions remain prohibited.
MG/as/APA