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Retail_Trading_Status

Current: Banned

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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.

Bullet 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

Complete markdown report for this analysis

## 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).

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### 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:**

*   [https://burundi-agnews.org/globalisation/burundi-la-brb-interdit-la-cryptomonnaie/](https://burundi-agnews.org/globalisation/burundi-la-brb-interdit-la-cryptomonnaie/) (Includes link to the BRB communiqué PDF)
*   [https://www.aa.com.tr/fr/afrique/burundi-interdiction-de-toutes-les-monnaies-virtuelles-/1571581](https://www.aa.com.tr/fr/afrique/burundi-interdiction-de-toutes-les-monnaies-virtuelles-/1571581)
*   [https://www.brb.bi/fr/content/avis-de-la-banque-centrale-sur-les-cryptomonnaies-au-burundi](https://www.brb.bi/fr/content/avis-de-la-banque-centrale-sur-les-cryptomonnaies-au-burundi)
*   [https://burundi-eco.com/la-cryptomonnaie-une-transaction-deconseillee-par-la-brb/](https://burundi-eco.com/la-cryptomonnaie-une-transaction-deconseillee-par-la-brb/)
*   [https://www.iwacu-burundi.org/les-monnaies-virtuelles-nont-pas-de-cours-legal-au-burundi/](https://www.iwacu-burundi.org/les-monnaies-virtuelles-nont-pas-de-cours-legal-au-burundi/)
*   [https://cointelegraph.com/news/burundi-bans-cryptocurrency-trading-due-to-lack-of-user-protection](https://cointelegraph.com/news/burundi-bans-cryptocurrency-trading-due-to-lack-of-user-protection)
*   [https://www.proeliumlaw.com/cryptocurrency-regulation-tracker/](https://www.proeliumlaw.com/cryptocurrency-regulation-tracker/)
*   [https://cdegl.org/le-bitcoin-au-burundi-un-pari-pour-lavenir/](https://cdegl.org/le-bitcoin-au-burundi-un-pari-pour-lavenir/)
*   [https://freetech.institute/cryptomonnaies-entre-opportunites-et-defis-pour-les-economies-emergentes/](https://freetech.institute/cryptomonnaies-entre-opportunites-et-defis-pour-les-economies-emergentes/)
*   [https://burundi-eco.com/investir-dans-les-cryptomonnaies-a-ses-risques-et-perils/](https://burundi-eco.com/investir-dans-les-cryptomonnaies-a-ses-risques-et-perils/)

Change Tracking

Change Justification

Explain why this analysis was changed or reconciled

Okay, as a specialized financial regulatory analyst, here's a detailed comparison of the changes between the "Previous Analysis" (dated April 12, 2025) and the "New Analysis" (dated June 26, 2025) regarding the Retail_Trading_Status in Burundi.

**Overall Summary of Changes:**

The core status of retail cryptocurrency trading in Burundi remains **"Banned"** in both reports. However, the "New Analysis" provides a slightly updated perspective, omits a key legislative development mentioned in the previous report, and incorporates different supporting sources and nuances. The most significant change is the absence of any mention of the early 2025 draft AML/CFT law in the new report, which was a notable point in the previous analysis.

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**Detailed Breakdown of Changes:**

1.  **Report Date and Recency:**
    *   **Previous Analysis:** Dated April 12, 2025.
    *   **New Analysis:** Dated June 26, 2025.
    *   **Change:** The new analysis is more recent by approximately 2.5 months. This implies it should, in theory, capture any developments within that intervening period.

2.  **Current Status:**
    *   **Previous Analysis:** Banned
    *   **New Analysis:** Banned
    *   **Change:** No change in the fundamental status. Both reports concur that retail cryptocurrency trading is prohibited.

3.  **Detailed Narrative Explanation:**

*   **Reiteration of the Ban and Rationale:**
        *   Both reports correctly identify the Bank of the Republic of Burundi (BRB) as the authority imposing the ban in August/September 2019.
        *   Both cite consumer protection, high volatility, lack of regulation, and non-legal tender status as primary reasons.
        *   **Minor Nuance:** The new report explicitly adds "fraudulent schemes" to the list of risks and mentions that the BRB was "alerted to the existence of investment and marketing activities of these virtual currencies" naming specific examples like "Bitcoin, Ether, Litecoin, Dogecion, Onecoin, BTC, Fahari Cash Coin, Ello Cash Coin." It also adds a statistic: "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." This specific figure was not in the previous report.

*   **AML/CFT Developments (Significant Omission/Change):**
        *   **Previous Analysis:** Dedicated a paragraph to an "early 2025" draft law aimed at strengthening AML/CFT, which "reportedly includes provisions for potentially establishing monitoring mechanisms for cryptocurrency exchange platforms." It noted this was primarily for AML/CFT alignment, not a reversal of the retail ban. This was supported by "Excerpt 7 (Recent AML/CFT Law Context)" from the Assemblée Nationale du Burundi (Feb 2025).
        *   **New Analysis:** Makes no mention of this draft AML/CFT law or any specific legislative efforts to monitor cryptocurrency platforms. Instead, it states: "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."
        *   **Change:** This is the most substantial difference. The new report either deems the previously mentioned draft law as not having progressed, irrelevant to the retail trading ban status, or it was overlooked. The previous report saw this as a noteworthy, albeit limited, development. The new report's statement that "no specific crypto-focused regulatory framework for KYC/AML" exists directly contrasts with the previous report's information about a *draft* law aiming to establish such mechanisms.

*   **Clandestine Trading:**
        *   **Previous Analysis:** "some reports suggest that limited, clandestine cryptocurrency trading might persist among tech-savvy individuals."
        *   **New Analysis:** "Despite the official ban, some sources suggest that cryptocurrency usage, particularly Bitcoin, continues clandestinely."
        *   **Change:** Largely consistent, with the new report being slightly more assertive ("continues clandestinely" vs. "might persist").

*   **Discussions on Policy Revision:**
        *   **Previous Analysis:** Focused on the AML/CFT draft law as the main area of "discussion."
        *   **New Analysis:** Introduces a new element: "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."
        *   **Change:** The new report points to broader, perhaps more academic or advocacy-driven, discussions about the future of crypto policy, rather than a specific legislative initiative.

4.  **Supporting Excerpts and Sources:**

*   **Previous Analysis:**
        *   Relied heavily on Vertex AI Search Results, providing snippets and then links to the search tool's redirect.
        *   Included a key excerpt (Excerpt 7) from "Assemblée Nationale du Burundi (Vertex AI Search Result [3], Feb 2025)" regarding the AML/CFT draft law.
        *   Sources included general trackers, news aggregators (Asia Crypto Today, Finance Magnates), local news (Burundi Times), blogs (UPay, Blockchain blog), and regional analysis (CDE Great Lakes).

*   **New Analysis:**
        *   Provides more direct quotes attributed to BRB communiqués (often via secondary news sources but presented as direct statements).
        *   Offers direct, accessible URL links to the source articles rather than search engine redirects.
        *   **Omits** any source or excerpt related to the AML/CFT draft law mentioned in the previous report.
        *   Includes sources like Burundi Eco, IWACU, Cointelegraph, and an official BRB link (though the content on the BRB link is an "avis" or notice, not necessarily the full original communiqué).
        *   Retains CDE Great Lakes as a source, confirming the ongoing ban and clandestine use.
        *   Adds new sources like Freetech Institute and another Burundi Eco article to support the point about ongoing discussions/challenges.

*   **Change:** The new report has a stronger emphasis on sourcing information from direct news reports of BRB statements and provides more user-friendly URLs. The selection of sources reflects the narrative changes, particularly the omission of the AML/CFT draft law source and the inclusion of sources discussing broader crypto challenges/opportunities.

**Conclusion of Changes in Analysis Result:**

While the fundamental conclusion (Retail Trading Status: Banned) remains unchanged, the "New Analysis" presents a subtly different landscape:

1.  **Shift in Focus from Specific Legislation to General Stance:** The most significant change is the dropping of information about the early 2025 draft AML/CFT law. This suggests that, from the perspective of the new analysis, this draft law either did not progress, was not deemed significant enough to alter the retail trading status quo, or was not considered in the latest assessment.
2.  **Introduction of Broader Policy Discussions:** The new report introduces the idea that there are ongoing, albeit informal or academic, discussions about potentially revising Burundi's crypto policy, which was not mentioned previously.
3.  **Enhanced Sourcing for Core Ban:** The new report provides more explicit excerpts attributed to BRB communications and more direct links to news sources covering the ban.
4.  **Additional Contextual Detail:** The inclusion of the pre-ban trading statistic adds a small piece of historical context.

In essence, the new analysis reaffirms the ban with slightly more detailed sourcing on the original prohibition, but steps back from highlighting specific, recent legislative developments (like the AML/CFT draft). Instead, it points towards more general, ongoing debates about the future of cryptocurrency in the country, while firmly maintaining that the current operational status is a complete ban on retail trading.

Previous Status: Banned

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