Ethiopia's central bank declares birr-paired P2P crypto trades illegal, promises a framework

On 1 March 2026, the National Bank of Ethiopia declared all birr-paired peer-to-peer cryptocurrency transactions illegal unless explicitly authorised, citing foreign exchange manipulation, fraud and the absence of anti-money laundering safeguards.

The prohibition is drawn narrowly to birr-paired peer-to-peer transactions rather than digital assets generally, and authorisation is expressly contemplated: the NBE confirmed it is developing a comprehensive digital asset framework in consultation with global peer regulators.

The ban follows Ethiopia's July 2024 reform programme and a roughly 200% birr devaluation, during which the NBE has been closing currency arbitrage channels, peer-to-peer crypto trading among them. The measure points toward eventual licensing rather than permanent prohibition, with Ethiopia positioned to become one of East Africa's next VASP regimes, once the framework is issued.