The National Bank of Ethiopia (NBE) announced that the use, purchase, sale, exchange, transfer, trading, settlement, and facilitation of transactions involving virtual assets are prohibited unless expressly authorised under the existing legal framework.
“The prohibition is for all forms of virtual assets, not just crypto currencies” the bank’s statement noted over the weekend, stating that the ban extends to digital representations of value that can be electronically traded, exchanged, or used for payment, investment, or similar purposes.
“The National Bank of Ethiopia therefore advises members of the public to refrain from engaging in any transactions and activities involving virtual assets and avoid exposure to significant risks, including legal consequences, fraud, scams, cyber-related threats, operational failures, market manipulation, and substantial losses,” it stated.
The bank first announced restrictions on Peer-to-Peer paired transactions earlier this year in February. However, the country has been providing energy infrastructure for large-scale bitcoin mining with the aim of generating foreign currency.
According to the NBE, prohibited activities include exchanging virtual assets for fiat currencies or other virtual assets, transferring virtual assets, providing custody or administrative services for such assets, and offering financial services related to the issuance or sale of virtual assets.
The bank has also been leading the implementation of macroeconomic reforms which were introduced in July 2024. Among the key policy changes was the introduction of a market-based forex regime—an action that led to what notable economists described as a “free fall of the Ethiopian currency.
The NBE has maintained a cautious stance toward crypto currencies and other digital assets, arguing that transactions involving such instruments fall outside the country’s authorised financial system unless explicitly approved by the central bank.
MG/as/APA