Is Crypto Legal in Ethiopia?

Cryptocurrency remains largely unrecognized under Ethiopian law. The National Bank of Ethiopia (NBE) does not permit the use of any crypto asset as a medium of exchange, affirming that only the Ethiopian birr may be used for payments within the country (2).

Despite global trends toward digital finance, Ethiopia has yet to enact specific legislation to legalize private cryptocurrencies. Instead, the government’s National Digital Payment Strategy outlines a cautious approach, exploring digital payment technologies while reinforcing the primacy of the birr in all financial transactions (1).

"Cryptocurrency and decentralized payments made global headlines with the rise of Bitcoin, and there is increasing global uptake, with technology companies such as Facebook announcing their own cryptocurrency initiatives. The use of innovative digital payments technologies has allowed significant increases in global financial inclusion." (1)

In June 2022, the NBE issued a formal warning declaring cryptocurrency trading illegal and mandating that any entities involved in crypto operations must register with the Information Network Security Agency to avoid penalties—a clear signal of strict enforcement (2).

Looking ahead, Ethiopian authorities are studying the potential for a central bank digital currency (CBDC) under the same strategy that emphasizes financial stability. However, until new regulations are enacted, private crypto assets remain prohibited as legal tender in Ethiopia (1).

Source:
https://nbe.gov.et/wp-content/uploads/2023/04/National-Digital-Payment-Strategy.pdf
https://www.emurgo.africa/blog/posts/ethiopia-from-crypto-ban-to-crypto-regulation

Last updated: 16-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.