Is Crypto Legal In Eritrea?

Cryptocurrency is legal in Eritrea despite the absence of specific regulatory frameworks governing digital assets. The government has maintained a cautious but not restrictive stance toward cryptocurrencies, leaving businesses and individuals to engage with digital assets at their own risk without clear legal protections (1). The Bank of Eritrea has not issued comprehensive regulations addressing cryptocurrency transactions, creating a gray area where virtual currencies operate without formal oversight or licensing requirements (1).

Eritrea's payment system faces significant constraints due to limited banking infrastructure and restricted access to international financial networks, resulting in heavy reliance on cash transactions. The government requires local currency for all transactions, and local rules deviate from international standards for electronic commerce (2). Digital transformation progress remains slow due to challenges including limited technology adoption, security concerns, and insufficient access to reliable internet and mobile networks, with credit and debit card usage remaining exceptionally low (2).

"There is no regulation of cryptocurrencies in Eritrea. However, they are legal. The government's stance on crypto has been cautious but not restrictive like other African nations."

Cryptocurrency adoption faces substantial obstacles including poor internet infrastructure limited to hotels, government organizations, and educational institutions, where connections are heavily monitored. The International Energy Agency reports that less than half of Eritrea's population has access to electricity, severely hampering energy-intensive activities like cryptocurrency mining (1). Despite these challenges, tech-savvy young Eritreans are adopting virtual currencies for wealth creation and investment purposes, seeking alternatives to strict fiscal policies and an unaccommodating traditional banking system that imposes excessive regulations on accounts including low monthly withdrawal limits and restrictions on foreign currency transfers (1).

Source:
https://blog.upay.best/crypto-adoption/eritrea/
https://dtri.uneca.org/v1/uploads/country-profile/eri-country-profile-en.pdf

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.