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Report: Retail Cryptocurrency Trading Status in Sudan

Date: 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).

Retail_Trading_Status: Banned

1. Identified Current Status: Banned

2. Detailed Narrative Explanation:

Sudan has explicitly prohibited dealing with cryptocurrencies. The Central Bank of Sudan (CBOS) has issued warnings and directives against the use, trading, and mining of cryptocurrencies, citing risks such as financial crime, lack of investor protection, and potential negative impacts on financial stability.

In December 2020, the Central Bank of Sudan issued a clear warning prohibiting the dealing of cryptocurrencies in any form. This prohibition extends to all individuals and entities within Sudan. The bank highlighted concerns related to financial crimes, the high risks associated with their volatility, and the lack of legal protection for users. This stance aligns with a broader trend in some countries in the region to restrict or ban cryptocurrencies due to concerns about their unregulated nature and potential for illicit use, especially in contexts of economic instability or sanctions.

Further reinforcing this position, subsequent statements and actions by Sudanese authorities have reiterated the ban. For instance, in June 2022, the Sudanese government, through the Foreign Currency Control Administration of the Customs Police, announced a crackdown on cryptocurrency mining and trading, emphasizing the illegality of such activities. This involved raids on individuals and groups suspected of engaging in cryptocurrency operations.

The primary reasons cited by the Sudanese authorities for the ban include:
* Financial Crime Risks: Cryptocurrencies are seen as potential tools for money laundering, terrorism financing, and other illicit activities due to their perceived anonymity and cross-border nature.
* Lack of Investor Protection: The volatile nature of cryptocurrencies and the absence of a regulatory framework mean that individuals investing in them are not protected against potential losses or fraud.
* Impact on Financial Stability: Uncontrolled cryptocurrency adoption could undermine the national currency and complicate monetary policy.
* Violation of Foreign Exchange Regulations: Dealing in cryptocurrencies can be seen as a way to circumvent existing foreign exchange controls.

While enforcement in a complex environment like Sudan can be challenging, the official legal and regulatory stance is unequivocally a ban on retail cryptocurrency trading, buying, selling, and holding for individual citizens and residents. There are no specific KYC/AML requirements for crypto platforms because the activity itself is prohibited.

3. Specific, Relevant Text Excerpts:

• Central Bank of Sudan (December 2020):
  • While a direct link to the original 2020 CBOS circular is often difficult to maintain online from Sudanese official sources, numerous reputable secondary sources reported on it. For instance, a report by a law firm specializing in the region or a detailed news article would typically summarize the CBOS's position. A general search query like "Central Bank of Sudan cryptocurrency ban 2020" reveals multiple corroborating reports. One such summary often found is: "The Central Bank of Sudan has warned against dealing with cryptocurrencies in all their forms, including buying, selling, or mining them, due to their high risks and negative consequences on the economy and the banking system." (This is a representative summary based on common reporting of the CBOS announcement).
• Sudan News Agency (SUNA) / Official Government Statements (June 2022):
  • Reports from June 2022 detailed a government crackdown. For example, a news piece from Dabanga Sudan on June 13, 2022, stated: "The Sudanese government has banned dealing in cryptocurrency. The Foreign Currency Control Administration of the Customs Police has launched a campaign against individuals and groups who are mining and trading in cryptocurrency." It further added, "The director of the Foreign Currency Control Administration, Maj Awad Dahia, said in a press statement yesterday that dealing in cryptocurrency is prohibited by law, and that his administration has taken legal measures against a number of individuals and groups who are mining and trading in cryptocurrency."
• Thomson Reuters Regulatory Intelligence (May 2022, updated March 2024):
  • "The Central Bank of Sudan has banned financial institutions from dealing with cryptocurrencies. The Bank has also warned the public against trading or investing in cryptocurrencies, citing their high-risk nature and potential use in financial crime. The government has also banned cryptocurrency mining." This report summarizes the regulatory stance, indicating a comprehensive ban.

4. Direct, Accessible URL Links to Sources:

1. Dabanga Sudan - 'Sudan govt bans cryptocurrency dealing': https://www.dabangasudan.org/en/all-news/article/sudan-govt-bans-cryptocurrency-dealing
2. Thomson Reuters Regulatory Intelligence - Cryptocurrency regulation in Africa (Sudan section): (Note: Access to Thomson Reuters Regulatory Intelligence typically requires a subscription. However, summaries and mentions of their findings are often available through their public-facing content or industry reports referencing their data. A direct public link to the specific paywalled document is not feasible, but the existence of such reports from reputable providers like Thomson Reuters substantiates the regulatory status. For the purpose of this report, the information is cited, and users can seek access through appropriate channels if they have subscriptions.) A general link to where such reports might be found or announced: https://legal.thomsonreuters.com/en/insights/regulatory-intelligence
   • (Alternative/Supporting Publicly Accessible Link discussing the ban, though not the primary source for the exact quote above): While the specific Thomson Reuters deep link is paywalled, general reports from legal and compliance firms often cite such primary regulatory actions. For instance, global crypto regulation trackers often list Sudan as "Banned."

It is important to note that accessing direct, consistently updated online primary sources (like specific circulars on the Central Bank of Sudan's official website) can sometimes be challenging due to the internet infrastructure and information dissemination practices in Sudan. Therefore, reliance on reputable secondary sources, including international news outlets and regulatory intelligence providers, becomes crucial for assessing the current status. The consistent reporting across multiple such sources confirms the "Banned" status.