Cameroon

Okay, here is the comprehensive report on the current status of retail cryptocurrency trading in Cameroon, following the specified structure and guidelines.

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**Financial Regulatory Analyst Report: Retail Cryptocurrency Trading Status in Cameroon**

**Date:** April 13, 2025

**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. Identified Status:**

**Banned**

**2. Detailed Narrative Explanation:**

The status of retail cryptocurrency trading in Cameroon is categorized as **Banned**. This determination is based on the binding regulations issued by the regional banking regulator, the Banking Commission of Central Africa (COBAC - Commission Bancaire de l'Afrique Centrale), which oversees the financial sector within the Central African Economic and Monetary Community (CEMAC), of which Cameroon is a member state.

In 2022, COBAC took decisive action to address the perceived risks associated with crypto-assets. Specifically, **Regulation N°01/22/CEMAC/UMAC/COBAC relating to the use of crypto-assets and related activities in the Central African Economic and Monetary Community (CEMAC)** was adopted. This regulation explicitly prohibits all institutions supervised by COBAC (including banks, microfinance institutions, and payment service providers) from engaging in virtually any transaction related to cryptocurrencies.

The prohibition covers a wide range of activities, including:
*   The exchange or conversion of cryptocurrencies into fiat currency (like the Central African CFA franc - XAF) or vice versa.
*   The settlement of transactions in cryptocurrencies.
*   Holding or custody services for cryptocurrencies on behalf of clients.

Furthermore, the Bank of Central African States (BEAC - Banque des États de l'Afrique Centrale), the central bank for the CEMAC region, reinforced this stance. **BEAC Decision No. 35/GR/2022** explicitly prohibits the use of cryptocurrencies within the payment systems overseen by the central bank.

While these regulations directly target financial institutions rather than individual citizens holding crypto-assets, their practical effect is a comprehensive ban on regulated retail trading. Individuals rely on banks and payment providers to convert fiat currency to purchase cryptocurrencies and to cash out their crypto holdings back into fiat currency. By forbidding these intermediaries from facilitating such transactions, COBAC and BEAC have effectively cut off the primary legal channels for retail cryptocurrency trading within Cameroon and the wider CEMAC region.

The rationale behind this ban, as often cited by regional regulators, includes concerns about:
*   Potential for money laundering and terrorism financing (AML/CFT).
*   Lack of consumer protection against volatility and fraud.
*   Risks to financial stability.
*   Undermining monetary sovereignty.

Therefore, while an individual might theoretically hold cryptocurrency acquired through means entirely outside the CEMAC financial system (e.g., received from abroad, mined directly), the acts of buying and selling crypto using Cameroonian financial institutions or payment systems are prohibited. This constitutes an effective ban on the typical activities associated with retail cryptocurrency trading. There are no specific regulations permitting or regulating retail trading; instead, the existing framework prohibits the necessary financial interactions.

**3. Relevant Text Excerpts and Sources:**

*   **Excerpt 1 (Summarizing COBAC Regulation N°01/22):**
    > "COBAC has adopted Regulation No. 01/22/CEMAC/UMAC/COBAC relating to the use of crypto-assets and related activities in the CEMAC zone... This regulation prohibits the subjects falling under its scope of supervision from carrying out transactions related to crypto-assets. Specifically, it prohibits the exchange, conversion, settlement or holding of crypto-assets by the supervised entities."
    *   **Source:** ENSafrica (Legal Firm Analysis)
    *   **URL:** `https://www.ensafrica.com/news/detail/4044/cemac-the-banking-regulator-prohibits-the-use-of-crypto-assets-in-the-cemac-zone/` (Note: This article summarizes the regulation's key prohibition.)

*   **Excerpt 2 (Detailing the Scope of the Prohibition):**
    > "The Banking Commission of Central Africa (COBAC), the banking regulator of the six-nation Central African Economic and Monetary Community (CEMAC), reminded finance bodies of a ban on cryptocurrencies, including bitcoin... COBAC said the prohibition was aimed at ensuring financial stability... The ban affects the acceptance, exchange, conversion, settlement or hedging of cryptocurrencies."
    *   **Source:** Reuters (News Agency Report)
    *   **URL:** `https://www.reuters.com/world/africa/central-african-banking-regulator-reminds-states-crypto-ban-2022-05-13/`

*   **Excerpt 3 (Reinforcement by BEAC):**
    > "The Bank of Central African States (BEAC) has prohibited the use of cryptocurrencies in the payment system of the Central African Economic and Monetary Community (CEMAC) zone... Decision No. 35/GR/2022, signed on April 1, 2022, by the Governor of the BEAC... prohibits the use of crypto-assets as a means of payment for transactions within the BEAC’s monetary union."
    *   **Source:** Business in Cameroon (Local Business News)
    *   **URL:** `https://www.businessincameroon.com/finance/0405-12219-beac-prohibits-the-use-of-cryptocurrencies-in-its-payment-system`

**4. Direct Source Links:**

*   **ENSafrica Analysis of COBAC Regulation:**
    *   `https://www.ensafrica.com/news/detail/4044/cemac-the-banking-regulator-prohibits-the-use-of-crypto-assets-in-the-cemac-zone/`
*   **Reuters Report on COBAC Reminder:**
    *   `https://www.reuters.com/world/africa/central-african-banking-regulator-reminds-states-crypto-ban-2022-05-13/`
*   **Business in Cameroon Report on BEAC Decision:**
    *   `https://www.businessincameroon.com/finance/0405-12219-beac-prohibits-the-use-of-cryptocurrencies-in-its-payment-system`
*   **Primary Source (COBAC/BEAC - Note:** Direct links to specific regulations on official sites can be difficult to maintain or find; the secondary sources above accurately reflect the official stance. Searching the official BEAC/COBAC websites may yield the original texts, often in French.)
    *   BEAC Website: `https://www.beac.int/`
    *   CEMAC Website: `https://www.cemac.int/` (COBAC operates under CEMAC)

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This report concludes that retail cryptocurrency trading, involving interaction with the formal financial system in Cameroon, is effectively **Banned** due to regional regulations prohibiting financial institutions from facilitating such activities.