Ethiopia is quietly laying the groundwork for future cryptocurrency regulation while keeping its official ban on digital currencies in place. The Financial Intelligence Service (FIS) confirmed this move during a recent anti-money laundering summit held in Addis Ababa.
The FIS has begun training experts to track and respond to illegal crypto activities. Muluken Amare, the director, explained that the program’s purpose is to strengthen how unauthorized transactions are managed and investigate which future legal frameworks should be developed.
This initiative is being supported by the United Nations, Russia, and members of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). The group, made up of 21 member states, works to enhance regional cooperation against financial crimes.
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Although the National Bank of Ethiopia has forbidden crypto, officials believe that some crypto activity may already be unregulated within the country. According to Amare, not every digital transaction should be viewed as a crime, yet he argued that any such actions cannot go unchecked.
At present, Ethiopian law does not allow the use of digital currencies like Bitcoin or Ethereum for transactions or payments because only the Birr has legal status. Agencies that enforce the law are now paying more attention to cases involving money laundering or financing terrorism.
Regional Concerns Over Crypto Misuse Grow
At the ESAAMLG conference, regional and international experts highlighted growing risks from unregulated crypto use. Kamal Anwar, a United Nations counterterrorism officer, warned that cryptocurrencies are increasingly used for tax evasion, terrorism funding, and online fraud.
According to Muluken Yirga, senior advisor to ESAAMLG, Al-Shabaab and ISIL use crypto to circumvent official financial oversight. He encouraged African countries to improve their economic intelligence systems and collaborate to deal with dangers from abroad.
Amare noted that no major crypto-related crimes have been reported in Ethiopia so far. Even so, he stated that responsibility lies in staying prepared, as authorities need to address the threats connected to virtual assets.
Ethiopia has prohibited cryptocurrency trading, but its actual efforts to regulate the industry could lead to a change in policy. Officials are developing better training and technology to get ready for future issues in this area, which they need to address.
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