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Edit: Ethiopia

Retail_Trading_Status

Current: Gray-Zone

High Confidence

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Ethiopia's regulatory environment for cryptocurrency is characterized by a stark dichotomy between retail prohibitions and industrial acceptance, placing it firmly in the 'Gray-Zone'. The National Bank of Ethiopia (NBE) maintains a strict ban on the use of cryptocurrencies for payments and retail trading. This stance was solidified in June 2022 when the NBE declared such activities illegal, citing risks to the financial system and the sovereignty of the Ethiopian Birr. This prohibition was legally reinforced by the National Bank of Ethiopia Proclamation No. 1359/2024, which explicitly forbids the use of crypto for payment transactions, although it simultaneously empowers the NBE to regulate the sector in the future.

Conversely, the government has embraced cryptocurrency mining as a strategic economic sector. The Information Network Security Administration (INSA) issued a directive in August 2022 requiring all crypto operations, specifically miners, to register. Since then, the government has licensed over 20 mining companies, predominantly foreign, allowing them to operate legally and access electricity, often requiring payments in foreign currency. This creates a unique 'partial ban' landscape where the production of the asset is state-sanctioned, but its domestic use by citizens is criminalized.

For retail investors, the situation remains restrictive. There are no licensed exchanges for retail trading, and the banking sector is prohibited from processing crypto-related transactions. The Financial Intelligence Service (FIS) actively monitors for illicit crypto transactions, and officials have warned that 'legal measures' will be taken against violators. Despite this, peer-to-peer (P2P) trading persists in a black market capacity.

Looking forward, the regulatory framework is in transition. The Ethiopian Capital Market Authority (ECMA) has signaled its intent to regulate 'virtual assets' as part of its broader capital markets regime, and the NBE's 2024 amendment provides the legal basis for future licensing. However, until specific directives are issued to license retail service providers, the status for the average citizen remains one of prohibition, contrasting sharply with the government's welcoming stance toward industrial miners.

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