The National Bank of Ethiopia has broadened its restriction on cryptocurrencies and other virtual assets, clarifying that the ban covers not only digital coins but also exchanges, transfers, custody services and related intermediaries.
The central bank said the new notice is meant to close regulatory loopholes and curb unauthorized digital trading networks. It builds on earlier action taken in February 2026, when regulators moved against birr-paired peer-to-peer crypto transactions.
Under the updated framework, prohibited activities include exchanging virtual assets for fiat currency or other digital assets, transferring value, providing safekeeping services and supporting public token offerings. The NBE said these activities fall outside Ethiopia’s legal payment and foreign exchange system unless specifically authorized.
The bank framed the move as an interpretation of Ethiopia’s National Payment System law, which gives the central bank authority over payment systems. It also said birr-denominated crypto transactions operate like a parallel foreign exchange market and can bypass anti-money laundering and counter-terrorism financing controls.
The notice has already had immediate effects on global platforms, with major exchanges suspending Ethiopian birr trading pairs on their peer-to-peer marketplaces.
The crackdown comes as Ethiopia’s underground USDT-birr market has grown quickly, with market estimates placing daily turnover at more than 1 million dollars. Analysts say demand has been fueled by currency depreciation, remittance challenges and the search for alternative settlement channels.
At the same time, the central bank made clear that cryptocurrency mining remains legal and is expanding in the country, supported by Ethiopia’s hydroelectric power. The notice, however, strongly urged the public to avoid virtual assets altogether, warning of fraud, cyber risks, market manipulation and the possibility of total financial loss.
The NBE said it is still working on a formal long-term digital asset framework. Until that framework is introduced, it said, virtual asset use, trading and transfer remain prohibited unless expressly approved.
The central bank’s latest notice marks a sharper regulatory stance at a time when digital finance is growing rapidly and policymakers are trying to balance innovation, financial stability and monetary control.
