News Ethiopia Begins Preparations to Regulate Crypto Transactions
By Samuel Abate
June 7, 2025
Despite an official ban on trading virtual currencies in Ethiopia, officials at the Financial Intelligence Service (FIS) say that preparations are underway to regulate them.
Muluken Amare, director of the Service, made the announcement at a recent Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) meeting in Addis Ababa. ESAAMLG is a regional organization comprising 21 member countries, including Ethiopia, and is headquartered in Dar es Salaam, Tanzania.
In collaboration with the United Nations, Russia, and member states, the Service has provided training to financial security experts on how to monitor and address illegal virtual currency transactions.
“Trading in virtual currencies other than the Ethiopian Birr is not allowed in Ethiopia, but we are offering training to prepare for the possibility of unauthorized trading,” said Muluken Amare.
He added that technological, human, and skilled capacity-building efforts are underway to identify individuals or entities violating the ban. These preparations are being made regardless of whether the National Bank of Ethiopia decides to legalize virtual currencies in the future.
When asked whether crypto transactions are occurring in Ethiopia despite the ban, Muluken replied:
“Transactions are not legally permitted in Ethiopia. However, a study is needed to assess the volume of such activities. As crypto technology is still new, some transactions may be occurring. That said, it cannot be assumed that all such transactions are illegal. The official currency of Ethiopia is Birr, and any virtual transactions conducted in other currencies are not authorized. If such transactions are linked to crimes such as terrorism or other illegal activities, investigations will be carried out accordingly.”
He stressed the importance of clear regulatory frameworks.
“If crypto transactions are legalized in the future, they must be properly regulated. If they remain prohibited, then mechanisms must be in place to enforce the law and penalize offenders,,” said Muluken,
While there is evidence of terrorists using virtual currencies for fundraising, there has been no documented case of damage to Ethiopia either from domestic use or cross-border transactions involving virtual currencies.
Kamal Anwar, United Nations Counter-Terrorism Program management officer, noted that virtual currencies are not only used in terrorism financing but also for tax evasion and money laundering.
“Virtual assets pose increasing risks related to terrorism financing, money laundering, tax evasion, corruption, and fraud,” Anwar said. “Due to the rapidly evolving nature of this technology, many countries lack the tools—such as blockchain analysis capabilities—to counter these threats. It’s a growing danger not just globally, but in this region as well.”
Muluken Yirga, senior legal advisor to ESAAMLG, also expressed concern about the use of virtual assets by terrorist groups.
“There are different terrorist organizations operating in our region, including Al-Shabaab, Al-Qaeda, ISIL, and Daesh. These groups are increasingly using virtual currencies to raise and transfer funds,” said Muluken.
He emphasized the need for regional cooperation to prevent virtual currencies from being used for terrorist activities and other crimes. He also called on countries to strengthen their financial intelligence units and enhance law enforcement capabilities to investigate and prosecute technology-driven financial crimes.
The central bank officially banned the use of virtual currencies through a revised proclamation issued months ago. However, it stated that the sector could be legalized in the future, with regulations and guidelines issued as necessary.