Ethiopia halts birr-based peer-to-peer crypto trades as central bank prepares formal digital asset regulatory framework.
The National Bank of Ethiopia has prohibited peer-to-peer (P2P) cryptocurrency transactions denominated in birr. The directive bans birr-paired crypto trades on exchanges, platforms, or similar services unless explicitly authorized.
The central bank cited risks including extreme price volatility, fraud exposure, foreign exchange manipulation, and operational weaknesses. It also highlighted the lack of anti-money laundering and counter-terrorism financing safeguards typically required of licensed financial institutions.
Ethiopia maintains strict foreign exchange controls, with the birr not freely convertible and cross-border capital flows closely monitored to protect reserves and financial stability.
The NBE said it is developing a comprehensive regulatory framework for digital assets in consultation with international regulators and local stakeholders. Until that framework is finalized, birr-denominated P2P crypto transactions remain prohibited.
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