The National Bank of Ethiopia (NBE) has clarified that its prohibition on virtual assets extends beyond cryptocurrencies warning the public that a broad range of virtual asset activities remain illegal unless expressly authorized under the country’s existing legal framework.
In a public notice issued on July 23, 2026, the central bank said the ban covers the
use,
purchase,
sale,
exchange,
transfer,
trading,
settlement, and
facilitation
of transactions involving virtual assets.
PRESS RELEASE | National Bank of Ethiopia Lists Activities Prohibited
It emphasized that the restriction is not limited to cryptocurrencies but also applies to any digital representation of value that can be electronically
traded,
transferred,
exchanged, or
used for payment, investment, or similar purposes.
According to the NBE, prohibited activities include
exchanging virtual assets for fiat currencies or other virtual assets,
transferring virtual assets,
providing custody or administrative services for such assets, and
offering financial services related to the issuance or sale of virtual assets.
The central bank urged members of the public to refrain from participating in virtual asset transactions warning that those involved could face legal consequences as well as risks associated with fraud, scams, cyberattacks, operational failures, market manipulation, and substantial financial losses.
The notice does not introduce new regulations or enforcement measures but instead reaffirms Ethiopia’s existing legal restrictions governing virtual assets while clarifying that the ban should not be interpreted as applying only to cryptocurrencies.
The NBE has consistently maintained a cautious stance toward cryptocurrencies and other digital assets, arguing that transactions involving such instruments fall outside Ethiopia’s authorized financial system unless explicitly approved by the central bank.
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