Burundi
Retail_Trading_Status
- Analysis ID
- #620
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- Latest
- Created
- 2025-12-12 03:57
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- 93922d1a...
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Executive Summary
Retail cryptocurrency trading is explicitly banned in Burundi. The Bank of the Republic of Burundi (BRB) issued a strict directive in 2019 prohibiting the use, trading, and commercialization of all virtual currencies, citing consumer protection concerns and the lack of regulatory oversight. No financial institutions are permitted to facilitate crypto transactions, and the central bank has warned that 'strong measures' will be taken against violators.
Key Pillars
Bank of the Republic of Burundi (BRB) - Primary Regulator
Microfinance Department (BRB) - Enforcement Oversight
Complete Prohibition on Virtual Currency Usage
Ban on Banking Support for Crypto Transactions
Landmark Laws
BRB Communiqué on Virtual Currencies (Official Communiqué) - Enacted: 2019-09-02
- An official statement by the Central Bank Governor declaring that virtual currencies are not legal tender and are not regulated. It explicitly prohibits financial institutions from offering payment services using virtual currencies and warns the public against their use.
- Source
Considerations
Strict enforcement warning: Regulators have threatened 'strong measures' against violators.
No legal recourse: The Central Bank explicitly stated that users have no legal protection in case of losses.
Banking blockade: Financial institutions are forbidden from processing crypto-related transactions.
Scam-driven policy: The ban was largely a reaction to citizens losing money in crypto scams (e.g., OneCoin) and volatility.
Notes
The 2019 ban was precipitated by the collapse of several schemes and the loss of savings by locals. The government views crypto primarily as a risk to financial stability and consumer safety.
Remaining Uncertainties
- Specific penalties for individual possession (holding) versus active trading are not detailed in a penal code, though 'strong measures' are threatened.
- Whether the ban is actively enforced against peer-to-peer (P2P) traders using foreign accounts.
Detailed Explanation
Detailed Explanation
The Republic of Burundi maintains an explicit and comprehensive ban on retail cryptocurrency trading and usage. This prohibition was formally enacted on September 2, 2019, when the Bank of the Republic of Burundi (BRB), the nation's central bank and primary financial regulator, issued its official Communiqué on Virtual Currencies. The directive declares that virtual currencies are not legal tender and operate outside of any regulatory oversight. Consequently, the BRB strictly prohibits all use, trading, and commercialization of such assets. The regulatory framework is absolute, with the Microfinance Department of the BRB tasked with enforcement oversight to ensure adherence to this policy across the financial sector. The central bank's communiqué explicitly forbids all financial institutions from offering any payment services using virtual currencies or from facilitating crypto-related transactions in any form, effectively instituting a complete banking blockade. The BRB has warned that 'strong measures' will be taken against any violators of this ban. This regulatory stance was largely a reaction to consumer protection concerns, specifically citizens losing money in cryptocurrency scams like OneCoin and to the inherent volatility of the asset class. The policy is fundamentally risk-averse, viewing cryptocurrency as a direct threat to financial stability and consumer safety. Importantly, the central bank has stated that individuals who engage with virtual currencies have no legal recourse or protection in the event of financial losses, underscoring the government's position of non-recognition and high risk.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading and usage is explicitly banned in Burundi.
* The status is a complete prohibition on the use, trading, and commercialization of all virtual currencies.
II. Key Regulatory Bodies
* Bank of the Republic of Burundi (BRB): The primary regulator and central bank, which issued the foundational ban.
* Microfinance Department (BRB): Holds enforcement oversight for the prohibition.
III. Important Legislation
* BRB Communiqué on Virtual Currencies (Official Communiqué)
* Enacted: 2019-09-02
* This official statement declares virtual currencies are not legal tender and are unregulated.
* It explicitly prohibits financial institutions from offering payment services using virtual currencies.
* It warns the public against the use of virtual currencies.
* Source: https://www.brb.bi
IV. Compliance Requirements
* No specific compliance requirements exist for operating cryptocurrency services, as all such activities are banned.
* The core requirement for financial institutions is to refrain entirely from facilitating any crypto-related transactions.
V. Notable Restrictions or Limitations
* Complete Prohibition: A ban on all use, trading, and commercialization of virtual currencies for retail users.
* Banking Blockade: Financial institutions are forbidden from processing any cryptocurrency-related transactions.
* No Legal Protection: The central bank has stated users have no legal recourse in case of losses from crypto activities.
* Strict Enforcement: Regulators have threatened 'strong measures' against any violators of the ban.
VI. Recent Developments or Notes
* The 2019 ban was precipitated by the collapse of several schemes (e.g., OneCoin) where locals lost savings.
* Government policy is scam-driven and risk-averse, viewing crypto primarily as a threat to financial stability and consumer safety.
* The regulatory stance remains one of total prohibition with no indications of a change in policy.
Full Analysis Report
Full Analysis Report
The regulatory status of cryptocurrency in Burundi is characterized by a comprehensive ban on trading and usage, established by the Bank of the Republic of Burundi (BRB) in September 2019. The central bank's intervention was decisive and reactionary, triggered by reports of citizens losing significant funds to cryptocurrency scams and the high volatility of digital assets. In its official communiqué, the BRB clarified that virtual currencies such as Bitcoin, Ether, and Litecoin are not legal tender within the territory and are not guaranteed by any government or central bank.
The prohibition extends beyond a simple banking ban; it explicitly 'outlaws the use' of cryptocurrency. Alfred Nyobewumusi, a director at the central bank's microfinance department, reinforced this stance by stating that 'strong measures could be taken against all those who will not respect this decision.' This language indicates that the ban targets the activity of trading itself, not just the financial intermediaries, placing Burundi in the 'Banned' category rather than a 'Gray-Zone' of mere regulatory ambiguity.
Operational evidence supports this strict status. There are no licensed exchanges in the country, and international platforms are inaccessible via local banking rails due to the prohibition on financial institutions facilitating crypto transactions. The regulatory environment is static, with no recent indications of a shift toward legalization or the development of a licensing framework. The government's primary focus remains on consumer protection through prohibition rather than regulation.
The regulatory status of cryptocurrency in Burundi is characterized by a comprehensive ban on trading and usage, established by the Bank of the Republic of Burundi (BRB) in September 2019. The central bank's intervention was decisive and reactionary, triggered by reports of citizens losing significant funds to cryptocurrency scams and the high volatility of digital assets. In its official communiqué, the BRB clarified that virtual currencies such as Bitcoin, Ether, and Litecoin are not legal tender within the territory and are not guaranteed by any government or central bank. The prohibition extends beyond a simple banking ban; it explicitly 'outlaws the use' of cryptocurrency. Alfred Nyobewumusi, a director at the central bank's microfinance department, reinforced this stance by stating that 'strong measures could be taken against all those who will not respect this decision.' This language indicates that the ban targets the activity of trading itself, not just the financial intermediaries, placing Burundi in the 'Banned' category rather than a 'Gray-Zone' of mere regulatory ambiguity. Operational evidence supports this strict status. There are no licensed exchanges in the country, and international platforms are inaccessible via local banking rails due to the prohibition on financial institutions facilitating crypto transactions. The regulatory environment is static, with no recent indications of a shift toward legalization or the development of a licensing framework. The government's primary focus remains on consumer protection through prohibition rather than regulation.
Source Evidence
Primary and secondary sources cited in this analysis
"Les monnaies virtuelles ou crypto-monnaies ne sont pas réglementées... ces monnaies n'ont pas de cours légal sur le territoire du Burundi."
"Strong measures could be taken against all those who will not respect this decision."
"The Bank of The Republic of Burundi issued a statement in which it banned the use of cryptocurrencies in the country."
"Burundians will no longer trade cryptocurrencies following a government directive that has outlawed the activities."
Web Sources (9)
Sources discovered via web search grounding
Search queries used (9)
- Burundi cryptocurrency regulation status
- Banque de la République du Burundi crypto currency ban
- Burundi central bank statement on virtual assets
- legal status of bitcoin in Burundi
- Burundi crypto trading rules
- Is bitcoin legal in Burundi 2024
- Banque de la République du Burundi communiqué crypto monnaies 2019 texte
- "strong measures" Burundi crypto central bank
- Burundi arrests for cryptocurrency holding
https://blog.upay.best/crypto-adoption/burundi/
https://archive.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-agnews.org/burundi-la-brb-interdit-la-cryptomonnaie/
https://www.aa.com.tr/fr/afrique/burundi-interdiction-de-toutes-les-monnaies-virtuelles-/1571248
https://www.financemagnates.com/cryptocurrency/regulation/burundi-bans-crypto-trading-warns-strict-action-against-traders/
https://www.pymnts.com/cryptocurrency/2019/burundi-prohibits-cryptocurrency-trading/
https://www.forexcrunch.com/blog/2019/09/05/burundi-becomes-the-latest-african-country-to-ban-cryptocurrency-trading-in-totality/
https://blog.ueex.com/best-crypto-exchanges-in-burundi/