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Djibouti

Retail_Trading_Status

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Analysis ID
#173
Version
Archived
Created
2025-04-12 06:53
Workflow Stage
Live

Executive Summary

As of early 2025, Djibouti's regulatory status for retail cryptocurrency trading is 'Unclear,' with no specific laws governing the activity, but no outright ban either. The Central Bank of Djibouti (BCD) has not authorized cryptocurrencies as legal tender and hasn't issued specific licenses for exchanges. Existing AML/CFT regulations, particularly Instruction No. 2017-02, apply to illicit crypto activities. While plans to regulate crypto exchanges were announced in 2022, no recent confirmation of implementation exists, and the focus seems to be on digital financial products within the traditional banking system.

Key Pillars

The primary regulator is the Banque Centrale de Djibouti (BCD), which oversees financial activities and enforces AML/CFT regulations. Core compliance requirements center around Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), with KYC/AML regulations aligned with international standards. There are no specific licensing or registration requirements for cryptocurrency exchanges or related businesses.

Landmark Laws

Instruction No. 2017-02 ('Dispositif De Prévention Du Blanchiment De Capitaux Et Du Financement Des Activites Terroristes') is the primary legislation governing KYC/AML in Djibouti. It's enforced by the BCD and the Financial Intelligence Unit (CRF) [17]. It aims to prevent money laundering and the financing of terrorist activities.

Considerations

Cryptocurrencies are not considered legal tender in Djibouti. Individuals engaging with cryptocurrencies do so largely at their own risk, without specific consumer protection frameworks. The government has issued warnings regarding the risks associated with trading cryptocurrencies. The overall stance appears cautious but not prohibitive.

Notes

In 2022, the government announced plans to regulate cryptocurrency and was working on a framework to allow the legal and safe operation of cryptocurrency exchanges [8]. However, there is no recent confirmation that such regulations have been implemented. The focus of the BCD and government initiatives appears to be more on developing digital financial products within the traditional banking system and mobile money services [3, 15]. A 2021 World Bank report highlighted very low acceptance of digital channels generally among MSMEs in Djibouti [9].

Detailed Explanation

As of early 2025, the regulatory status of retail cryptocurrency trading in Djibouti is 'Unclear'. There are no specific laws explicitly governing the buying, selling, or holding of cryptocurrencies by individuals. Cryptocurrency is not legal tender, and the Central Bank of Djibouti (Banque Centrale de Djibouti - BCD) has not authorized its use as a means of payment. The BCD, which regulates financial activities, including money transfers and microfinance, hasn't issued specific licenses for cryptocurrency exchanges. While no dedicated crypto regulation exists, existing financial laws concerning anti-money laundering (AML) and combating the financing of terrorism (CFT) would likely apply to illicit activities involving cryptocurrencies. Djibouti is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF) and has implemented KYC/AML regulations aligned with international standards through Instruction No. 2017-02 ('Dispositif De Prévention Du Blanchiment De Capitaux Et Du Financement Des Activites Terroristes'), enforced by the BCD and the Financial Intelligence Unit (Cellule de renseignement financier - CRF). Any entity facilitating crypto transactions would theoretically fall under these AML/CFT obligations. In 2022, there were mentions of the government working on a framework to allow the legal and safe operation of cryptocurrency exchanges, but there is no recent confirmation of implementation. The government's focus seems more on developing digital financial products within the traditional banking system and mobile money services like D-Money. The Ministry of Digital Economy and Innovation (MDENI) aims to create a "Startup ACT" incorporating digital regulations, but this focuses on broader digital transformation, e-commerce, and e-banking, not specifically crypto-assets. Individuals engaging with cryptocurrencies do so largely at their own risk, without specific consumer protection frameworks. Some international exchanges may offer services to Djiboutian residents, while others restrict access. Source [2] indicates that while cryptocurrency is not legal tender and not authorized for use as payment for goods and services, purchasing and selling cryptocurrencies through the internet is not prohibited. Source [8] mentions that in July 2022, [Minister] Doualeh stated regulation would protect investors and ensure market stability and the government was working on a framework for legal and safe cryptocurrency exchanges. The Djiboutian government has issued warnings about the risks of trading Bitcoin and other virtual currencies [8]. A 2021 World Bank report highlighted low acceptance of digital channels among MSMEs [9].

Summary Points

Retail Cryptocurrency Trading Status in Djibouti (Early 2025)

I. Overall Regulatory Status:

  • Unclear: No specific legislation explicitly governs the buying, selling, or holding of cryptocurrencies by retail users.
  • Operates in a regulatory gray area.
  • No outright ban on cryptocurrencies for individuals.
  • Cryptocurrencies are not legal tender. [2, 13]
  • The Central Bank of Djibouti (BCD) has not authorized cryptocurrency use as payment. [2]

II. Key Regulatory Bodies:

  • Banque Centrale de Djibouti (BCD):
    • Regulates financial activities, including money transfers and microfinance. [3]
    • Has not issued specific licenses or frameworks for cryptocurrency exchanges.
    • Enforces AML/CFT regulations. [17]
  • Financial Intelligence Unit (Cellule de renseignement financier - CRF):
    • Enforces AML/CFT regulations. [17]
  • Ministry of Digital Economy and Innovation (MDENI):
    • Focuses on broader digital transformation, e-commerce, and e-banking. [10]
    • Developing a "Startup ACT" framework incorporating digital regulations (not specifically crypto-focused). [10]

III. Important Legislation and Regulations:

  • No specific cryptocurrency legislation exists.
  • Existing Financial Laws:
    • AML/CFT regulations apply to illicit activities involving cryptocurrencies. [4, 17]
    • Djibouti is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF). [17]
    • Instruction No. 2017-02 ('Dispositif De Prévention Du Blanchiment De Capitaux Et Du Financement Des Activites Terroristes') is the primary legislation governing KYC/AML. [17]

IV. Requirements for Compliance:

  • Entities facilitating crypto transactions theoretically fall under general AML/CFT obligations. [4, 17]
  • KYC/AML compliance is enforced by the BCD and CRF. [17]

V. Notable Restrictions or Limitations:

  • Lack of Consumer Protection: Individuals engaging with cryptocurrencies do so at their own risk, without specific consumer protection frameworks. [2]
  • No Legal Tender Status: Cryptocurrencies cannot be used as legal tender. [2, 13]
  • Varying Exchange Access: Some international exchanges offer services to Djiboutian residents, while others restrict access. [5, 12, 18, 20, 27, 28]

VI. Recent Developments or Changes:

  • Government Plans to Regulate: The government has previously announced plans to regulate cryptocurrency. [2, 4]
  • 2022 Announcement: In 2022, there were mentions of the government working on a framework to allow the legal and safe operation of cryptocurrency exchanges. [8]
    • No recent confirmation of implementation.
  • Focus on Traditional Digital Finance: The BCD and government initiatives appear to be more focused on developing digital financial products within the traditional banking system and mobile money services. [3, 15]
  • Low Digital Financial Acceptance: A 2021 World Bank report highlighted very low acceptance of digital channels generally among MSMEs in Djibouti. [9]

Full Analysis Report

Report: Retail Cryptocurrency Trading Status in Djibouti

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

1. Current Status: Unclear

2. Detailed Narrative Explanation:

As of early 2025, Djibouti does not have specific legislation or regulations explicitly governing the buying, selling, or holding of cryptocurrencies like Bitcoin by individual retail users. The legal status is therefore best described as 'Unclear', existing within a regulatory gray area.

There is no evidence of an outright ban on cryptocurrencies for individuals. Sources suggest that purchasing and selling cryptocurrencies online is not prohibited [2]. However, cryptocurrencies are definitively not considered legal tender in Djibouti [2, 13], and the Central Bank of Djibouti (Banque Centrale de Djibouti - BCD) has not authorized their use as a means of payment for goods and services [2]. The BCD, which regulates financial activities including money transfers and microfinance [3], has not issued specific licenses or frameworks for cryptocurrency exchanges or related businesses.

While there's no dedicated crypto regulation, existing financial laws, particularly those concerning anti-money laundering (AML) and combating the financing of terrorism (CFT), would likely apply to illicit activities involving cryptocurrencies [4, 17]. Djibouti is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF) and has implemented KYC/AML regulations aligned with international standards, primarily through Instruction No. 2017-02 ('Dispositif De Prévention Du Blanchiment De Capitaux Et Du Financement Des Activites Terroristes') enforced by the BCD and the Financial Intelligence Unit (Cellule de renseignement financier - CRF) [17]. Any entity facilitating crypto transactions would theoretically fall under these general AML/CFT obligations.

Some sources indicate that the government has previously announced plans to regulate cryptocurrency [2, 4], and in 2022, there were mentions of the government working on a framework to allow the legal and safe operation of cryptocurrency exchanges [8]. However, there is no recent confirmation that such regulations have been implemented. The focus of the BCD and government initiatives appears to be more on developing digital financial products within the traditional banking system and mobile money services like D-Money [3, 15], rather than regulating decentralized cryptocurrencies. A 2021 World Bank report highlighted very low acceptance of digital channels generally among MSMEs in Djibouti [9], suggesting that broader digital financial literacy and infrastructure might be precursors to specific crypto regulation. The government has established a Ministry of Digital Economy and Innovation (MDENI) aiming to create a "Startup ACT" framework incorporating digital regulations, but this seems focused on broader digital transformation, e-commerce, and e-banking rather than specifically crypto-assets [10].

The lack of explicit regulation means that individuals engaging with cryptocurrencies do so largely at their own risk [2], without specific consumer protection frameworks related to crypto-assets. While some international exchanges may offer services to Djiboutian residents [5, 18, 20, 27, 28], others explicitly restrict access [12]. The overall stance appears cautious but not prohibitive, with an acknowledgement of the technology but no formal endorsement or regulatory structure [4].

3. Supporting Excerpts:

  • Source [2] (Vertex AI Search Result Summary): "Djibouti. Undecided. No legal status for cryptocurrencies. There is no cryptocurrency regulation, however, the government has announced plans to regulate cryptocurrency." "Cryptocurrency is not a legal currency and is not authorised for use as a means of payment of goods and services. However, purchase and sale of cryptocurrencies through the internet is not prohibited."
  • Source [4] (UPay Blog, Nov 2024): "Adoption Status: Cryptocurrency adoption in Djibouti is in a legal gray area. They do not have an explicit legal status or specific regulations, but the government has announced plans to regulate them." "Djibouti currently operates in a regulatory gray area with no specific cryptocurrency laws, though existing financial regulations still apply to illegal activities." "The government maintains a cautious but open approach, showing interest in blockchain technology while warning citizens about investment risks."
  • Source [8] (Les Afriques, July 2022): "[Minister] Doualeh stated that regulation will help protect investors and ensure market stability. He also said that the government was working on a framework that will allow the legal and safe operation of cryptocurrency exchanges in Djibouti." (Translated from French) "The Djiboutian government has issued a warning to its citizens about the risks associated with trading Bitcoin and other virtual currencies." (Translated from French)
  • Source [5] (Invezz, Feb 2025): "Yes, buying Bitcoin is legal in Djibouti. You can safely buy and sell cryptocurrency using a Djiboutian crypto exchange. However, many cryptocurrency exchanges aren't regulated in Djibouti, as the legislation has yet to catch up with the reality of the crypto market."
  • Source [17] (Smile Identity): "As a member of the Middle East and North Africa Financial Action Task Force (MENAFATF)... Djibouti has implemented KYC/AML regulations in line with international standards." "AML/KYC regulations in Djibouti are enforced by a number of regulators including the Banque Centrale de Djibouti (BCD); Cellule de renseignement financier, Djibouti (CRF). The primary legislation governing KYC/AML in Djibouti is Dispositif De Prévention Du Blanchiment De Capitaux Et Du Financement Des Activites Terroristes' instruction No. 2017-02."

4. Source Links:

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