Ethiopia plans to regulate crypto
Ethiopia begins drafting crypto regulations despite nationwide ban
Ethiopia’s Financial Intelligence Service (FIS) has announced it is preparing to regulate virtual currencies, even though such assets remain banned under current Ethiopian law.
The move was disclosed by FIS Director Muluken Amare during a recent Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) meeting in Addis Ababa, where regional financial crime officials gathered to address the risks posed by virtual assets, reports Crypto News.
Amare emphasized that regulatory frameworks are being developed in coordination with international partners, including the United Nations, Russia, and ESAAMLG member states, as part of a broader effort to strengthen enforcement against financial crimes involving crypto.
Terrorism financing drives regulatory urgency
The decision to begin preparing regulations, despite the ongoing ban, reflects growing concern that terrorist groups such as Al-Shabaab, ISIL, and Al-Qaeda are using virtual currencies to bypass conventional financial systems. Muluken Yirga, a senior legal advisor to ESAAMLG, highlighted how these groups exploit crypto for fundraising and money movement, complicating law enforcement efforts.
While Amare acknowledged that not all virtual currency transactions are criminal, he stressed that unauthorized use of non-Birr assets remains illegal unless tied to specific criminal activities. FIS is training financial investigators to detect crypto-related offenses, especially money laundering, tax evasion, and terrorist financing.
Toward a regulatory or enforcement path forward
Though Ethiopia continues to prohibit crypto trading, FIS’s approach reflects a dual-pronged readiness: whether Ethiopia chooses to legalize or continue banning virtual assets, a formal oversight mechanism will be necessary. “It cannot be assumed that all such transactions are illegal,” Amare stated, suggesting a potential shift in perspective as the country grapples with emerging financial technologies.
The readiness to build enforcement tools and establish regulatory capabilities marks a notable evolution in Ethiopia’s stance—recognizing that compliance and control are vital regardless of policy direction. The effort positions Ethiopia alongside other African nations facing similar dilemmas amid the global expansion of crypto markets.
Recently we wrote that the Swiss Federal Council has submitted a draft law to Parliament proposing the automatic exchange of cryptocurrency tax information starting in late 2026.
