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Burundi

Retail_Trading_Status

Banned Unknown
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Analysis ID
#338
Version
Archived
Created
2025-06-26 09:21
Workflow Stage
Initial Research

Executive Summary

Retail cryptocurrency trading is explicitly banned in Burundi by the Bank of the République du Burundi (BRB) since August 2019. The BRB cites the lack of regulation, absence of governmental guarantee, non-legal tender status, and potential user risks as primary reasons for the ban. There is no crypto-specific KYC/AML framework since the activity is prohibited, but general financial laws and BRB warnings apply. Despite the ban, some clandestine cryptocurrency usage persists, and discussions occur regarding potential benefits and revised policies, but the ban remains in effect.

Key Pillars

The primary regulator is the Bank of the République du Burundi (BRB). The core regulatory approach is a complete prohibition of retail cryptocurrency trading. There are no licensing or registration requirements for cryptocurrency platforms, as such activities are illegal. General financial laws and warnings from the central bank constitute the regulatory framework.

Landmark Laws

Bank of the République du Burundi (BRB) Communiqué (August 20, 2019): This communiqué prohibits all cryptocurrency trading in Burundi, stating that virtual currencies are not regulated, not guaranteed by any government or central bank, and do not have legal tender status in Burundi. It also clarifies that no entity is authorized to offer services related to virtual currencies.

Considerations

Cryptocurrencies are not recognized as legal tender in Burundi. The BRB has raised concerns about the speculative nature of cryptocurrencies and the lack of legal recourse for losses. Despite the ban, cryptocurrency usage persists clandestinely, indicating potential operational challenges for enforcing the prohibition. The BRB has advised the public to conduct financial operations only through credible and duly authorized financial institutions.

Notes

Prior to the August 2019 ban, approximately 20,000 Burundians were reportedly involved in Bitcoin trading. Instances of citizens losing money in cryptocurrency dealings influenced the BRB's decision to ban trading. While the ban remains in place, discussions are ongoing about the potential benefits and challenges of cryptocurrencies, with some advocating for a revised policy. Some sources suggest that cryptocurrency usage, particularly Bitcoin, continues clandestinely.

Detailed Explanation

Retail cryptocurrency trading is explicitly prohibited in Burundi, with the ban instituted by the Bank of the République du Burundi (BRB) in August 2019. This prohibition was prompted by concerns over the lack of regulation, the absence of guarantees from any government or central bank, the non-legal tender status of cryptocurrencies in Burundi, and the associated risks for users, including potential losses from high volatility and fraudulent schemes. According to the BRB communiqué on August 20, 2019, “Virtual currencies or cryptocurrencies are not regulated and are not issued or guaranteed by any Government or Central Bank, these currencies do not have legal tender status in the territory of Burundi.” The bank also noted being alerted to investment and commercialization activities involving cryptocurrencies like Bitcoin, Ether, Litecoin, Dogecion, Onecoin, BTC, Fahari Cash Coin, Ello Cash Coin, and other similar products, which are unregulated means of payment. The BRB clarified that “No entity or financial institution is currently authorized to offer remittance services or other payment services using a virtual currency.”

Before the ban, there was some cryptocurrency activity in Burundi, with reports indicating that over 20,000 Burundians were involved in Bitcoin trading in 2019. However, after alerts about investment and commercialization activities involving various cryptocurrencies, the BRB took a definitive stance to protect the public from risks. The bank consistently warned about the speculative nature of cryptocurrencies and the lack of legal recourse in case of losses.

Despite the official ban, some sources suggest that cryptocurrency usage, particularly Bitcoin, continues clandestinely. The CDE Great Lakes reported on January 30, 2025, that “Today, the use of bitcoin is done clandestinely, because on August 20, 2019, the Central Bank of Burundi banned Bitcoin as well as all other cryptocurrencies.” Discussions and analyses are ongoing within Burundi about the potential benefits and challenges of cryptocurrencies for emerging economies, with some advocating for a revised policy that could encourage innovation while managing risks, drawing inspiration from other African nations. Cointelegraph reported on September 4, 2019, that “Following a request from the public, Burundi has prohibited digital currency trading in the country due to a lack of protection for users.” Alfred Nyobewumusi, a director at the central bank's microfinance department, warned that 'Strong measures could be taken against all those who will not respect this decision.'

As of the latest available information, the ban remains firmly in place. There is no specific crypto-focused regulatory framework for KYC/AML for cryptocurrency platforms, as the activity itself is prohibited. General financial laws and warnings from the central bank constitute the current approach to cryptocurrencies. The BRB has advised the public to conduct financial operations only through credible and duly authorized financial institutions.

Summary Points

Retail Cryptocurrency Trading Status in Burundi (as of 2025-06-26)

I. Regulatory Status:

  • Status: Banned
    • Retail cryptocurrency trading (buying, selling, and holding) is explicitly prohibited.

II. Key Regulatory Bodies and Their Roles:

  • Bank of the République du Burundi (BRB) (Central Bank):
    • Instituted and enforces the ban on cryptocurrency trading.
    • Issues warnings to the public about the risks associated with cryptocurrencies.
    • Clarified that no entity is authorized to offer services related to virtual currencies.

III. Important Legislation and Regulations:

  • BRB Communiqué (August 20, 2019):
    • Declared that virtual currencies are not regulated, issued, or guaranteed by any government or central bank.
    • Stated that virtual currencies do not have legal tender status in Burundi.
    • Alerted the public to investment and marketing activities of various cryptocurrencies.
  • General Financial Laws:
    • Apply indirectly through warnings and enforcement of the ban.

IV. Requirements for Compliance:

  • Compliance: Complete prohibition. No compliance requirements exist for cryptocurrency trading, as it is illegal.
  • Authorized Financial Institutions: The public is advised to conduct financial operations only through credible and duly authorized financial institutions.

V. Notable Restrictions or Limitations:

  • Complete Ban: All forms of retail cryptocurrency trading are prohibited.
  • No Authorized Services: No entity or financial institution is authorized to offer cryptocurrency-related services.
  • Lack of Legal Recourse: The BRB warns of a lack of legal recourse in case of losses from cryptocurrency dealings.

VI. Recent Developments or Changes:

  • Ban Remains in Place: Despite discussions and analyses about potential benefits, the ban remains firmly in place as of the latest available information.
  • Clandestine Usage: Some sources suggest that cryptocurrency usage, particularly Bitcoin, continues clandestinely.
  • No Crypto-Focused KYC/AML: There is no specific crypto-focused regulatory framework for KYC/AML for cryptocurrency platforms, as the activity itself is prohibited.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Burundi

Date of Report: 2025-06-26

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).

Retail_Trading_Status in Burundi

Identified Status: Banned

Narrative Explanation:

Retail cryptocurrency trading (buying, selling, and holding) is explicitly prohibited in Burundi. This ban was instituted by the Bank of the République du Burundi (BRB), the country's central bank, in August 2019 and reiterated in subsequent communications. The primary reasons cited for the ban are the lack of regulation for virtual currencies, the absence of a guarantee by any government or central bank, their non-legal tender status in Burundi, and the associated risks for users, including potential losses from high volatility and fraudulent schemes.

Prior to the ban, there was some level of cryptocurrency activity in Burundi, with reports indicating that over 20,000 Burundians were involved in Bitcoin trading in 2019. However, following alerts about investment and commercialization activities involving various cryptocurrencies like Bitcoin, Ether, Litecoin, and others, the BRB took a definitive stance. The central bank clarified that no entity or financial institution is authorized to offer services related to virtual currencies.

The BRB's decision was also reportedly influenced by instances where citizens lost money in cryptocurrency dealings and a desire to protect the public from such risks. The bank has consistently warned the public about the speculative nature of cryptocurrencies and the lack of legal recourse in case of losses.

Despite the official ban, some sources suggest that cryptocurrency usage, particularly Bitcoin, continues clandestinely. There are also discussions and analyses within Burundi about the potential benefits and challenges of cryptocurrencies for emerging economies, with some advocating for a revised policy that could encourage innovation while managing risks, drawing inspiration from other African nations. However, as of the latest available information, the ban remains firmly in place. The central bank has advised the public to conduct financial operations only through credible and duly authorized financial institutions.

There is no specific crypto-focused regulatory framework for KYC/AML for cryptocurrency platforms, as the activity itself is prohibited. General financial laws and warnings from the central bank constitute the current approach to cryptocurrencies.

Specific, Relevant Text Excerpts and Sources:

  • Bank of the République du Burundi (BRB) Communiqué (August 20, 2019, as reported by various sources):

    • "Les monnaies virtuelles ou crypto-monnaies ne sont pas réglementées et ne sont pas émises ou garanties par aucun Gouvernement ou Banque Centrale, ces monnaies n'ont pas de cours légal sur le territoire du Burundi." (Virtual currencies or cryptocurrencies are not regulated and are not issued or guaranteed by any Government or Central Bank, these currencies do not have legal tender status in the territory of Burundi.)
    • "La Banque de la République du Burundi a été alertée sur l'existence d'activités d'investissement et de commercialisation de ces monnaies virtuelles à savoir Bitcoin, Ether, Litecoin, Dogecion, Onecoin, BTC, Fahari Cash Coin, Ello Cash Coin et autres produits similaires, qui sont des moyens de paiement non réglementés par aucune autorité monétaire." (The Bank of the Republic of Burundi has been alerted to the existence of investment and marketing activities of these virtual currencies, namely Bitcoin, Ether, Litecoin, Dogecion, Onecoin, BTC, Fahari Cash Coin, Ello Cash Coin and other similar products, which are means of payment not regulated by any monetary authority.)
    • "Aucune entité ni institution financière n'est actuellement autorisée à offrir des services de remise de fonds ou autres services de paiement en utilisant une monnaie virtuelle." (No entity or financial institution is currently authorized to offer remittance services or other payment services using a virtual currency.)

  • Burundi Eco (February 21, 2020):

    • "Etant donné que les monnaies virtuelles ou cryptomonnaies ne sont pas réglementées et ne sont pas émises ou garanties par aucun gouvernement ou Banque centrale, ces monnaies n’ont pas de cours légal sur le territoire du Burundi, estime la BRB." (Given that virtual currencies or cryptocurrencies are not regulated and are not issued or guaranteed by any government or Central Bank, these currencies do not have legal tender status in the territory of Burundi, according to the BRB.)

  • IWACU (September 4, 2019):

    • "«En fait, ces monnaies virtuelles ou crypto-monnaies n’ont pas de cours légal sur le territoire du Burundi»." ("In fact, these virtual currencies or cryptocurrencies do not have legal tender status in the territory of Burundi.")
    • "Il a rappelé au grand public qu’aucune institution financière n’est actuellement autorisée à offrir des services de remise des fonds ou autres services de paiement en utilisant une monnaie virtuelle." (He reminded the general public that no financial institution is currently authorized to offer fund transfer services or other payment services using a virtual currency.)

  • Cointelegraph (September 4, 2019):

    • "Following a request from the public, Burundi has prohibited digital currency trading in the country due to a lack of protection for users."
    • "Alfred Nyobewumusi, a director at the central bank's microfinance department, said: 'Strong measures could be taken against all those who will not respect this decision.'"

  • Proelium Law LLP (Cryptocurrency Regulation Tracker, accessed June 2024, information likely from earlier):

    • "Banned. Burundi banned all trading of cryptocurrencies on its soil, saying it couldn't offer digital money users protection in case of problems."

  • CDE Great Lakes (January 30, 2025):

    • "Une preuve que le Bitcoin se propage à bas bruit en Afrique, à l'exception notable du Burundi où il est encore interdit." (Proof that Bitcoin is quietly spreading in Africa, with the notable exception of Burundi where it is still banned.)
    • "Aujourd'hui, l'usage du bitcoin se fait clandestinement, car le 20 août 2019, la Banque Centrale du Burundi a interdit le Bitcoin ainsi que toutes les autres cryptomonnaies." (Today, the use of bitcoin is done clandestinely, because on August 20, 2019, the Central Bank of Burundi banned Bitcoin as well as all other cryptocurrencies.)

Direct, Accessible URL Links to Sources:

Web Sources (11)

Sources discovered via web search grounding

Search queries used (6)
  • Retail cryptocurrency trading status Burundi 2025
  • Légalité du trading de cryptomonnaies au Burundi pour les particuliers
  • Réglementation des cryptomonnaies Burundi Banque Centrale
  • Avis officiel Banque de la République du Burundi cryptomonnaies
  • Lois sur les actifs numériques Burundi
  • Interdiction des cryptomonnaies au Burundi
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