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Burundi

Retail_Trading_Status

Banned Unknown
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Analysis ID
#67
Version
Archived
Created
2025-04-12 06:42
Workflow Stage
Live

Executive Summary

Cryptocurrency trading is banned in Burundi since August/September 2019 by the Bank of the Republic of Burundi (BRB), the central bank. This decision prohibits individuals from legally engaging in cryptocurrency transactions and restricts financial institutions from offering related services, citing consumer protection concerns. While the ban remains in effect, some clandestine trading persists, and a recent draft law focusing on AML/CFT may introduce monitoring mechanisms for crypto exchanges, but it does not signal a reversal of the ban. The BRB's stance is based on the unregulated nature of cryptocurrencies and their potential for financial risk to users.

Key Pillars

  • Primary Regulator: Bank of the Republic of Burundi (BRB) enforces the ban on cryptocurrency trading.
  • Approach: Complete prohibition of buying, selling, and holding cryptocurrencies for individuals and restrictions on financial institutions offering related services.
  • Core Compliance Requirements: A new draft law aimed at strengthening Burundi's AML/CFT framework may introduce monitoring mechanisms for cryptocurrency exchange platforms, obliging them to adhere to compliance standards similar to traditional financial institutions.
  • Licensing/Registration: No licensing or registration framework exists for cryptocurrency exchanges or related activities, as they are banned.

Landmark Laws

  • BRB Ban on Cryptocurrency Trading and Use (August/September 2019): Prohibits individuals from legally buying, selling, or holding cryptocurrencies and prevents financial institutions from offering related services.
  • Draft Law Strengthening AML/CFT Framework (Early 2025): Aims to establish monitoring mechanisms for cryptocurrency exchange platforms, obliging them to adhere to similar compliance standards as traditional financial institutions; it is primarily focused on AML/CFT standards and controlling illicit financial flows.

Considerations

  • Cryptocurrencies are not considered legal tender in Burundi.
  • The BRB cites high volatility, unregulated platforms, and potential for financial losses as risks associated with cryptocurrencies.
  • The recent draft AML/CFT law aims to control illicit financial flows and align with international standards rather than reverse the trading ban.
  • Limited, clandestine cryptocurrency trading may persist despite the ban.
  • Citizens incurred losses from cryptocurrency investments and subsequently sought government intervention, prompting the ban.

Notes

  • The legal status of cryptocurrencies was ambiguous prior to the 2019 ban.
  • "Strong measures" would be enforced against individuals or entities violating the ban.
  • Some reports suggest that limited, clandestine cryptocurrency trading might persist among tech-savvy individuals.
  • The draft law strengthening Burundi's AML/CFT framework is a response to identified shortcomings.
  • In Burundi, Bitcoin has an ambiguous position, both shunned by the authorities and adopted by the urban population.
  • The links provided are based on search results, and direct links to original BRB statements may require searching the BRB website.

Detailed Explanation

The Bank of the Republic of Burundi (BRB) officially banned the trading and use of cryptocurrencies in Burundi in August/September 2019. This ban prohibits individuals from legally buying, selling, or holding cryptocurrencies and prevents financial institutions from offering related services. The BRB justified the ban by citing consumer protection concerns, highlighting the high volatility and unregulated nature of cryptocurrency trading platforms, as well as the potential for financial losses. The ban was reportedly prompted by citizens experiencing losses from cryptocurrency investments and seeking government intervention. The BRB explicitly stated that cryptocurrencies are not regulated, not guaranteed by any government or central bank, and thus do not constitute legal tender in Burundi. Officials warned of "strong measures" against those who violate the ban, emphasizing that no financial institution is authorized to offer remittance or payment services using virtual currencies.

Prior to the ban, the legal status of cryptocurrencies in Burundi was ambiguous. While the ban remains the official stance, some reports suggest that clandestine cryptocurrency trading persists among tech-savvy individuals operating outside the legal framework. In early 2025, discussions emerged regarding a new draft law aimed at strengthening Burundi's framework against money laundering and terrorist financing (AML/CFT). This draft potentially includes provisions for monitoring cryptocurrency exchange platforms and obliging them to adhere to similar compliance standards as traditional financial institutions. However, this appears to be focused on aligning with international AML/CFT standards and controlling illicit financial flows, rather than reversing the general ban on retail cryptocurrency trading for investment or payment purposes.

The BRB has stated that "no entity or financial institution is currently authorized to offer remittance or other payment services using a virtual currency" and that virtual currencies are traded on unregulated online platforms with highly volatile values, exposing users to potential losses without legal recourse. According to Alfred Nyobewumusi, director of the bank's micro-finance division, “strong measures” would be taken against those who continued trading. As of April 2025, the 2019 ban on retail cryptocurrency trading remains in effect. Sources confirm that "Burundi banned all trading of cryptocurrencies on its soil, saying it couldn't offer digital money users protection in case of problems."

Despite the ban, some underground trading persists, driven by tech-savvy individuals willing to take the risk, but these activities remain illegal as the government has not yet developed specific regulations or legal frameworks. While Bitcoin has an ambiguous position, both shunned by the authorities and adopted by the urban population, the use of bitcoin is done clandestinely since August 20, 2019, when the Central Bank of Burundi banned Bitcoin as well as all other cryptocurrencies because Bitcoin, as a decentralized digital currency, is neither regulated, nor controlled, nor guaranteed by a state institution. The draft AML/CFT law would set up cryptocurrency exchange platforms and monitor their transactions obliging these platforms to comply with the same obligations as traditional financial institutions.

Summary Points

Here's a bullet-point summary of the Retail_Trading_Status in Burundi, based on the provided report:

Report Date: April 12, 2025

Topic: Retail_Trading_Status

I. Regulatory Status of Retail Cryptocurrency Trading

  • Banned: Retail cryptocurrency trading (buying, selling, and holding) is officially banned in Burundi.
    • The ban was implemented by the Bank of the Republic of Burundi (BRB) in August/September 2019.
    • The ban remains in effect as of April 2025.
  • Illegality: Individuals are prohibited from legally buying, selling, or holding cryptocurrencies.
  • Clandestine Trading: Despite the ban, limited, clandestine cryptocurrency trading may persist among tech-savvy individuals.
    • These activities are illegal.

II. Key Regulatory Bodies and Their Roles

  • Bank of the Republic of Burundi (BRB):
    • Central bank of Burundi.
    • Imposed the ban on cryptocurrency trading.
    • Responsible for enforcing the ban.
    • Issues warnings to the public about the risks of cryptocurrencies.
    • Does not authorize any financial institution to offer remittance or payment services using virtual currencies.

III. Important Legislation and Regulations

  • 2019 Ban: The primary regulation is the BRB's ban on cryptocurrency trading, implemented in August/September 2019.
    • Prior to the ban, the legal status of cryptocurrencies was ambiguous.
  • Draft AML/CFT Law (Early 2025):
    • A new draft law aimed at strengthening Burundi's framework against money laundering and terrorist financing (AML/CFT) is under discussion.
    • The draft law may include provisions for monitoring cryptocurrency exchange platforms and obliging them to adhere to compliance standards similar to traditional financial institutions.
    • The draft law is primarily focused on aligning with international AML/CFT standards and controlling illicit financial flows.
    • The draft law does not signal an imminent reversal of the general ban on retail cryptocurrency trading for investment or payment purposes.

IV. Requirements for Compliance

  • No Legal Compliance: Due to the ban, there are no legal compliance requirements for cryptocurrency trading within Burundi.
  • Potential Future Compliance (AML/CFT): If the draft AML/CFT law is enacted, cryptocurrency exchange platforms may be required to comply with similar standards as traditional financial institutions.

V. Notable Restrictions or Limitations

  • Complete Ban: Individuals cannot legally buy, sell, or hold cryptocurrencies.
  • Financial Institutions Prohibited: Financial institutions are prohibited from offering any services related to virtual currencies.
  • Not Legal Tender: Cryptocurrencies are not regulated, not guaranteed by any government or central bank, and therefore do not constitute legal tender within Burundi.
  • Enforcement: "Strong measures" will be enforced against individuals or entities violating the ban.

VI. Recent Developments or Changes

  • Draft AML/CFT Law (Early 2025): Discussions emerged regarding a new draft law aimed at strengthening Burundi's framework against money laundering and terrorist financing (AML/CFT).
    • This draft reportedly includes provisions for potentially establishing monitoring mechanisms for cryptocurrency exchange platforms.
  • Persistence of Ban: As of April 2025, the 2019 ban on retail cryptocurrency trading remains the effective legal status.

Full Analysis Report

Financial Regulatory Analyst Report: Burundi

Report Date: April 12, 2025

Topic: Retail_Trading_Status

Description: Assessment of the legal permissibility for individual citizens and residents in Burundi to buy, sell, and hold cryptocurrencies, including the regulatory environment surrounding this activity (e.g., KYC/AML requirements, official warnings).

1. Current Status: Banned

2. Detailed Narrative Explanation:

The Bank of the Republic of Burundi (BRB), the country's central bank, officially banned the trading and use of cryptocurrencies within its borders in August/September 2019. This decision prohibits individuals from legally buying, selling, or holding cryptocurrencies and prevents financial institutions from offering any services related to virtual currencies.

The primary justification provided by the BRB for the ban was consumer protection. The central bank highlighted the significant risks associated with cryptocurrencies, including their high volatility, the unregulated nature of global trading platforms, and the potential for substantial financial losses for users. Reports indicated that the ban was partly prompted by citizens incurring losses from cryptocurrency investments and subsequently seeking government intervention. The BRB explicitly stated that cryptocurrencies are not regulated, not guaranteed by any government or central bank, and therefore do not constitute legal tender within Burundi.

Officials warned that "strong measures" would be enforced against individuals or entities violating the ban. No financial institution or entity is authorized by the BRB to offer remittance or payment services using virtual currencies.

Prior to the 2019 ban, the legal status of cryptocurrencies was ambiguous, lacking specific legislation or regulation addressing digital assets. While the ban remains the official stance, some reports suggest that limited, clandestine cryptocurrency trading might persist among tech-savvy individuals willing to operate outside the legal framework.

In early 2025, discussions emerged regarding a new draft law aimed at strengthening Burundi's framework against money laundering and terrorist financing (AML/CFT). This draft reportedly includes provisions for potentially establishing monitoring mechanisms for cryptocurrency exchange platforms, obliging them to adhere to similar compliance standards as traditional financial institutions. However, this development appears primarily focused on aligning with international AML/CFT standards and controlling illicit financial flows, rather than signaling an imminent reversal of the general ban on retail cryptocurrency trading for investment or payment purposes. As of April 2025, the 2019 ban on retail cryptocurrency trading remains the effective legal status.

3. Supporting Excerpts:

  • Excerpt 1 (Confirming Ban & Rationale): "Burundi banned all trading of cryptocurrencies on its soil, saying it couldn't offer digital money users protection in case of problems."

    • Source: Cryptocurrency Regulation Tracker (Vertex AI Search Result [2])

  • Excerpt 2 (Central Bank Statement): “The Bank of the Republic of Burundi reminds the general public that no entity or financial institution is currently authorized to offer remittance or other payment services using a virtual currency.” [...] “virtual currencies are traded on unregulated online platforms around the world, and their values ​​are highly volatile, resulting in speculative transactions that expose the users of these currencies to potential losses without no possibility of legal recourse.”

    • Source: Asia Crypto Today (reporting on BRB statement) (Vertex AI Search Result [4])

  • Excerpt 3 (Not Legal Tender): “Since 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 in the territory of Burundi.”

    • Source: Burundi Times / Blockchain blog (reporting on BRB statement) (Vertex AI Search Results [5], [8])

  • Excerpt 4 (Warning of Enforcement): "As a result, Alfred Nyobewumusi, director of the bank's micro-finance division said “strong measures” would be taken against those who continued trading."

    • Source: Asia Crypto Today (citing Bloomberg) (Vertex AI Search Result [4]) / Finance Magnates (Vertex AI Search Result [7]) / BitKE (Vertex AI Search Result [10])

  • Excerpt 5 (Persistence of Ban & Clandestine Use): "Adoption Status: The Republic of Burundi banned all cryptocurrencies in 2019, stating that the volatile asset class presents too much risk for citizens. [...] Despite the ban, some underground trading persists, driven by tech-savvy individuals willing to take the risk. However, these activities remain illegal as the government has not yet developed specific regulations or legal frameworks..."

    • Source: UPay Blog (Vertex AI Search Result [9], Nov 2024)

  • Excerpt 6 (Confirmation of 2019 Ban & Context): "Au Burundi, le Bitcoin a une position ambiguë, tant boudé par les autorités qu'adopter par la population citadine. [...] 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. La raison avancée était que le Bitcoin, en tant que monnaie numérique décentralisée, n'est ni régulé, ni contrôlé, ni garanti par une institution étatique." (Translation: "In Burundi, Bitcoin has an ambiguous position, both shunned by the authorities and adopted by the urban population. [...] 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. The reason given was that Bitcoin, as a decentralized digital currency, is neither regulated, nor controlled, nor guaranteed by a state institution.")

    • Source: CDE Great Lakes (Vertex AI Search Result [12], Jan 2025)

  • Excerpt 7 (Recent AML/CFT Law Context): "Le projet de loi vient alors en réponse aux manquements décelés notamment [...] en mettant en place des plateformes d'échange de cryptomonnaies et un suivi de leurs transactions car désormais ces plateformes sont obligés de se conformer aux mêmes obligations que les institutions financières traditionnelles..." (Translation: "The draft law then comes in response to the identified shortcomings, notably [...] by setting up cryptocurrency exchange platforms and monitoring their transactions because these platforms are now obliged to comply with the same obligations as traditional financial institutions...")

    • Source: Assemblée Nationale du Burundi (Vertex AI Search Result [3], Feb 2025) (Note: This excerpt refers to a draft law focused on AML/CFT, not necessarily a reversal of the general retail trading ban).

4. Source URLs:

(Note: Direct links to original BRB statements may require searching the BRB website, if available online. The provided links are based on the search results.)

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