Chad

**Report on the Current Status of Retail Cryptocurrency Trading in Chad**

**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:**

Chad is a member state of the Central African Economic and Monetary Community (CEMAC). Monetary policy and financial regulation within CEMAC, including for Chad, are primarily governed by the Bank of Central African States (BEAC) and supervised by the Central African Banking Commission (COBAC) and the Financial Market Supervisory Commission (COSUMAF).

The regulatory stance towards cryptocurrencies within the CEMAC zone, and therefore applicable to Chad, is prohibitive.

*   **Regional Prohibition:** In May 2022, following the Central African Republic's (CAR) controversial move to adopt Bitcoin as legal tender (a decision later reversed), COBAC issued a strong reminder and decision (D-2022/071) reinforcing the prohibition of cryptocurrencies within the CEMAC zone. This decision explicitly forbids institutions under its supervision (banks, microfinance institutions, payment service providers) from engaging in any crypto-related activities, including holding, exchanging, converting, or settling transactions involving cryptocurrencies. It also prohibits using crypto-assets for valuing assets or liabilities. The stated reason for this ban is to ensure financial stability and protect customer deposits.
*   **COSUMAF Warnings:** Prior to and following the COBAC decision, COSUMAF, the regional financial market supervisor, issued multiple warnings (e.g., October 2020) regarding the risks associated with crypto-asset offerings in the CEMAC region. These warnings highlighted that such offerings are unregulated and lack legal frameworks for investor protection. COSUMAF explicitly warned against unauthorized platforms offering crypto investments.
*   **BEAC Opposition:** The regional central bank, BEAC, has consistently expressed opposition to the regulation and use of cryptocurrencies. In early 2024, BEAC reiterated its stance, citing concerns that cryptocurrencies could deplete the region's foreign exchange reserves and undermine monetary stability. While BEAC is exploring the possibility of a Central Bank Digital Currency (CBDC), this is distinct from allowing private cryptocurrencies.
*   **Lack of National Legislation:** There is no specific national legislation in Chad that permits or regulates cryptocurrency trading. The prevailing regulatory environment is dictated by the regional bodies (BEAC, COBAC, COSUMAF), which have established a clear prohibition.
*   **Enforcement:** While individuals might still engage in peer-to-peer trading or use international platforms (often using foreign payment methods like credit cards, as noted in some reports), these activities occur outside the regulated financial system and against the explicit directives of the regional regulators. Financial institutions within Chad are banned from facilitating such transactions.

Therefore, for individual citizens and residents operating within the formal financial system of Chad, the buying, selling, and holding of cryptocurrencies through regulated channels is prohibited. While enforcement against individual retail users might be difficult, the official legal and regulatory stance constitutes a ban.

**3. Relevant Text Excerpts:**

*   **COBAC Decision (May 2022):** "In order to guarantee financial stability and preserve client deposits, COBAC recalled certain prohibitions related to the use of crypto-assets in CEMAC. The holding of cryptocurrencies of any type, the exchange, conversion, or settlement of transactions involving cryptocurrencies, and the use of cryptocurrencies as a way of evaluating assets or liabilities are all prohibited." (Summarized from Cryptonary, Reuters reporting cited)
*   **COBAC Decision D-2022/071 (May 6, 2022):** COBAC "released the COBAC Decision D-2022/071 on holding, using, exchange, and conversion of cryptocurrency or crypto assets by institutions regulated by COBAC." (Summarized from LEX Africa)
*   **COSUMAF Warning (October 2020):** COSUMAF "warns the public that there is no regulatory framework for the exercise of cryptocurrency-related activities in the CEMAC zone, effectively prohibiting the provision of these services. In other words, the COSUMAF has effectively banned transactions related to cryptocurrencies in the CEMAC zone..." (Quote from John W Ffooks & Co)
*   **BEAC Stance (February 2024):** "In response to pressing calls from fintech companies to regulate cryptocurrencies in the CEMAC region, the Central Bank of Central African States (BEAC) has firmly indicated its opposition... citing concerns that cryptocurrencies could deplete the community's foreign exchange reserves." (Summarized from Business in Cameroon)
*   **General Status (IMF, Nov 2022):** The IMF noted that BEAC's banking sector supervisory body (COBAC) "has banned the use of crypto for financial transactions in the CEMAC region." It also listed Cameroon (another CEMAC member under the same rules) as having banned crypto. (Summarized from IMF)
*   **General Status (CoinGecko, Dec 2023):** Lists Chad among countries where cryptocurrency is "Illegal". (Directly from CoinGecko table)

**4. Source URLs:**

*   **Cryptonary (Reporting on COBAC Ban):** `https://cryptonary.com/banking-commission-of-central-africa-reminds-states-of-the-crypto-ban/` (Accessed via Search Result [8])
*   **LEX Africa (Mentioning COBAC Decision D-2022/071):** `https://www.lexafrica.com/digital-currencies-and-services-gaining-momentum-across-the-continent/` (Accessed via Search Result [17])
*   **John W Ffooks & Co (COSUMAF Warning):** `https://www.jwflegal.com/news/why-crypto-hasnt-taken-off-in-francophone-africa-yet` (Accessed via Search Result [11])
*   **Business in Cameroon (BEAC Opposition):** `https://www.businessincameroon.com/finance/0502-13788-cemac-beac-rejects-cryptocurrency-regulation-amid-fintech-demands` (Accessed via Search Result [7])
*   **International Monetary Fund (IMF Blog):** `https://www.imf.org/en/Blogs/Articles/2022/11/22/africas-growing-crypto-market-needs-better-regulations` (Accessed via Search Result [6])
*   **CoinGecko (Legal Status List):** `https://www.coingecko.com/learn/crypto-legal-countries` (Accessed via Search Result [4])
*   **4m legal and tax (CEMAC Regulation Tracker):** `https://4mlegalnetwork.com/tracker-of-virtual-assets-regulation-within-the-cemac-zone/` (Accessed via Search Result [3])
*   **Bitcoin.com News (Reporting on COBAC Ban):** `https://news.bitcoin.com/report-central-african-banking-regulator-says-crypto-ban-still-effective/` (Accessed via Search Result [12])