Is Cryptocurrency Legal in Ethiopia? Can You But or Mine Bitcoin in This Country? In This Article of Countroverity We Will Discuss the Issue.
Cryptocurrency, specifically Bitcoin (BTC), is illegal in Ethiopia for transaction.
The National Bank of Ethiopia (NBE) has explicitly stated that the use of BTC and other coins for transactions is illegal.
NBE warns violators and said they’re going to face strict action. The official and legal currency in this country is Ethiopian Birr (ETB) as the officials say. They also do not recognize crypto exchanges in Ethiopia. The national signals intelligence and cybersecurity agency of the country is the Information Network Security Administration (INSA). INSA has stated that people or entitis who are invloved in cryptocurrency industry are mandated to register with the government.
Although there is a lack of legislation about cryptocurrencies in Ethiopia, the currecnt laws do not allow the use and transaction of BTC, Ethereum or any other forms of crypto in the country.
Let’s go in details of the legal framsworks.
What is the Crptocurrency Legal Framework in Ethiopia?
A 2008 proclamation, No. 591/2008 Article 5(1), stated the The NBE is the only authority which has the permit to print and circulate legal currencies in Ethiopia. We know that the pseudonym Satoshi Nakamoto created BTC in Jan 2009. A year before of this proclamation. Therefore, it does not specifically talk about crypto.
In 2022, the NBE stated that the use of cryptocurrencies like BTC for transaction is not legal, as we mentioned above. In the same year, a proclamation from National Payment System (No. 1282/2022) defines payment instruments, both “traditional and electronic”, must be tied to the official currency of the country, ETB.
INSA has issued two proclamation so far (in 2013 and 2022). On proclamation No. 808/2013, Article 6(9), INSA was determined as the regulator of “cryptographic’s” products and transactions. The authority has another statetment in Aug. 2022, which explicitly stated that everybody who want to get involved in “crypto operations” must register with them in 10 days.
Who Are Mining BTC in Ethipia?
In Feb. 2024, the investment are of the government, which is called Ethiopia Investment Holding, signed a contract wirh West Data Group’s Center Service PLC. Accordingly, this Hong Kong-based company is going to start BTC mining.
There are also other companies that have mining facilities in this country. Bitcluster (a russian compnay) and Hashlabs Mining (works in both Ethiopia and Finland) are two of the most famous miner companies working there. Reports show that the country in amont the top 5 of BTC mining destinations in 2023.
It’s not just mining in Ethiopia. The ministry of science and technology has signed a contract with a chinease company, Input Output Hong Kong (IOHK), which has actively participating in Cardano blockchain.
Final Verdict
Have you also felt the contradiction in cryptocurrency regulations in Ethiopia? Everything, from mining and blockchain development, is happening i the country, but people are not involved. Yet the use of BTC, ETH, and other coins are mandatory by INSA and NBE. Maybe in the future things get better.
What do you think about it? share your thought in the comment section.
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