South Sudan
Retail_Trading_Status
- Analysis ID
- #790
- Version
- Archived
- Created
- 2025-12-12 05:15
- Run
- 5097b13e...
- History
- View all versions
- Workflow Stage
- Step 1
Executive Summary
Cryptocurrency trading in South Sudan is effectively restricted and operates in a legal gray area. The Bank of South Sudan (BoSS) has explicitly declared that virtual assets do not have legal status and has issued directives prohibiting citizens from dealing in them, although no specific legislation criminalizing private possession has been enacted. Financial institutions are barred from facilitating crypto transactions, and authorities have conducted raids on unlicensed crypto investment firms.
Key Pillars
Bank of South Sudan (BoSS) - Primary financial regulator issuing warnings and directives.
Financial Intelligence Unit (FIU) - Tasked with AML/CFT monitoring, though capacity is limited.
Prohibition on Legal Tender Status - Virtual assets are not recognized as legal tender.
Bank Ban - Regulated financial institutions are prohibited from processing crypto-related transactions.
Landmark Laws
Bank of South Sudan Public Warning on Virtual Currencies (BoSS Press Statement) - Enacted: 2022-10-06
- A directive issued by Governor Johny Ohisa Damian declaring that virtual currencies like Bitcoin have no legal status in South Sudan. The statement explicitly prohibited citizens from dealing in virtual currencies and warned that providers are unregulated and unsupervised.
Bank of South Sudan Act, 2011 (Act No. 10 of 2011) - Enacted: 2011-07-14
- The primary banking law which grants the BoSS authority to regulate the financial sector and issue currency. It is the basis for the Central Bank's authority to declare crypto as non-legal tender.
- Source
Considerations
Strict Capital Controls: South Sudan has severe foreign exchange restrictions and cash withdrawal limits (e.g., SSP 10 million cap), which indirectly hamper crypto-fiat on-ramps.
Enforcement Actions: Security operatives have raided crypto-related businesses (e.g., Silicone Valley Shares) and seized assets, indicating active enforcement against commercial crypto entities.
FATF Grey List: South Sudan is on the FATF 'Jurisdictions under Increased Monitoring' list, increasing pressure to clamp down on unregulated value transfer services like crypto.
Lack of Consumer Protection: The Central Bank has explicitly stated there is no legislative provision to protect consumers from losses associated with virtual assets.
Notes
The distinction between 'Banned' and 'Gray-Zone' is thin here. While the Central Bank used the word 'prohibiting', the lack of a specific legislative act criminalizing possession (as opposed to dealing/business) suggests 'Gray-Zone'. The enforcement actions appear targeted at unlicensed financial intermediaries rather than individual users.
Remaining Uncertainties
- Whether the 'prohibition' mentioned by the Central Bank Governor is backed by a specific penal code provision or if it is purely a regulatory directive.
- The specific legal grounds used for the arrest of the Silicone Valley Shares staff (e.g., fraud, operating without a license, or specific crypto violation).
- Current status of P2P trading enforcement—whether individual traders are actively targeted or only corporate entities.
Full Analysis Report
Full Analysis Report
The regulatory status of cryptocurrency in South Sudan is best classified as 'Gray-Zone'. While there is no specific act of parliament criminalizing the private possession of digital assets, the Bank of South Sudan (BoSS) has taken a hostile regulatory stance. In October 2022, Governor Johny Ohisa Damian issued a strong public statement declaring that virtual currencies 'do not have legal status' in the country. The statement went further than a standard risk warning, with reports citing the Governor 'prohibiting citizens from dealing with virtual currencies'. This effectively renders the sector illegal for formal financial institutions and businesses, creating a de facto ban on the commercial level.
Operational evidence supports this restrictive environment. In September 2022, shortly before the official BoSS warning, security operatives raided the offices of 'Silicone Valley Shares', a company trading in cryptocurrencies. Authorities arrested staff and seized funds, despite the company's claims of being a registered business. This incident demonstrates that the government is willing to use general financial or criminal laws to prosecute crypto-related businesses, viewing them as unregulated financial services or potential Ponzi schemes.
The banking sector is effectively closed to cryptocurrency. The BoSS's declaration that crypto is not legal tender and its warnings about money laundering risks mean that commercial banks cannot process transfers to crypto exchanges without risking regulatory penalties. This isolation is compounded by South Sudan's broader economic context, which includes strict capital controls and limits on cash withdrawals to combat inflation and currency depreciation. As a result, any crypto trading activity is forced into peer-to-peer (P2P) channels or the informal economy.
Internationally, South Sudan remains on the Financial Action Task Force (FATF) 'Grey List' (Jurisdictions under Increased Monitoring). The country's Financial Intelligence Unit (FIU) is under pressure to improve its Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) frameworks. Given the FATF's Recommendation 15 regarding Virtual Assets, the BoSS's prohibitive stance is likely a defensive measure to mitigate risks in a jurisdiction that lacks the technical capacity to license and supervise Virtual Asset Service Providers (VASPs) effectively.
The regulatory status of cryptocurrency in South Sudan is best classified as 'Gray-Zone'. While there is no specific act of parliament criminalizing the private possession of digital assets, the Bank of South Sudan (BoSS) has taken a hostile regulatory stance. In October 2022, Governor Johny Ohisa Damian issued a strong public statement declaring that virtual currencies 'do not have legal status' in the country. The statement went further than a standard risk warning, with reports citing the Governor 'prohibiting citizens from dealing with virtual currencies'. This effectively renders the sector illegal for formal financial institutions and businesses, creating a de facto ban on the commercial level. Operational evidence supports this restrictive environment. In September 2022, shortly before the official BoSS warning, security operatives raided the offices of 'Silicone Valley Shares', a company trading in cryptocurrencies. Authorities arrested staff and seized funds, despite the company's claims of being a registered business. This incident demonstrates that the government is willing to use general financial or criminal laws to prosecute crypto-related businesses, viewing them as unregulated financial services or potential Ponzi schemes. The banking sector is effectively closed to cryptocurrency. The BoSS's declaration that crypto is not legal tender and its warnings about money laundering risks mean that commercial banks cannot process transfers to crypto exchanges without risking regulatory penalties. This isolation is compounded by South Sudan's broader economic context, which includes strict capital controls and limits on cash withdrawals to combat inflation and currency depreciation. As a result, any crypto trading activity is forced into peer-to-peer (P2P) channels or the informal economy. Internationally, South Sudan remains on the Financial Action Task Force (FATF) 'Grey List' (Jurisdictions under Increased Monitoring). The country's Financial Intelligence Unit (FIU) is under pressure to improve its Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) frameworks. Given the FATF's Recommendation 15 regarding Virtual Assets, the BoSS's prohibitive stance is likely a defensive measure to mitigate risks in a jurisdiction that lacks the technical capacity to license and supervise Virtual Asset Service Providers (VASPs) effectively.
Source Evidence
Primary and secondary sources cited in this analysis
"Ohisa issued a statement prohibiting citizens from dealing with virtual currencies, particularly bitcoins saying they don't have legal status in the country."
"Security operatives in Juba have seized their funds and arrested an undisclosed number of office staff... Silicone Valley Shares is a legally registered and licensed company in South Sudan."
"South Sudan should continue to work to implement its action plan... ensuring that competent authorities are suitably structured and capacitated."
"Legal status: Crypto peer-to-peer holding and trading is not illegal... Mining: Explicitly prohibited"
"In short, crypto buying in South Sudan is legal. There are no laws prohibiting citizens from buying, selling or trading cryptocurrency assets. However, crypto is not legal tender."
Web Sources (6)
Sources discovered via web search grounding
Search queries used (8)
- South Sudan central bank bitcoin ban
- legal status of cryptocurrency in South Sudan
- South Sudan Financial Intelligence Unit virtual assets
- Bank of South Sudan cryptocurrency regulation
- ESAAMLG Mutual Evaluation Report South Sudan crypto
- Bank of South Sudan "prohibiting citizens" bitcoin
- is bitcoin illegal in South Sudan
- South Sudan crypto arrests
https://coinfomania.com/cryptocurrency-regulation-in-sudan/
https://cexfinder.com/country/sudan/
https://www.sudanspost.com/south-sudan-central-bank-warns-citizens-against-use-of-bitcoin/
https://blog.mexc.com/wiki/is-crypto-mining-legal-in-south-sudan/
https://www.sudanspost.com/controversial-cryptocurrency-dealer-silicone-valley-shares-claims-security-operatives-seized-their-assets/
https://cexfinder.com/country/south-sudan/