Is Crypto Legal in Somalia?

Cryptocurrency is not recognized as legal tender in Somalia, and the Central Bank of Somalia has issued stern warnings against the use of virtual assets such as bitcoins and stablecoins (2). The bank emphasized that there are no licensed financial institutions authorized to engage in cryptocurrency business within the country (2). While cryptocurrency activities are not explicitly criminalized, the absence of regulatory framework and official recognition means digital currencies operate in a legal gray area with significant risks for users (2).

Somalia's financial system has undergone significant modernization in recent years, with the Central Bank establishing the National Payment System in July 2021 as the foundation of the country's financial infrastructure (1). Over two-thirds of payments in Somalia are already processed through mobile money and other digital platforms, positioning the country as a regional leader in cashless payment systems (1). However, this digital transformation has focused on regulated mobile money services rather than cryptocurrencies, with the Central Bank maintaining strict oversight of licensed financial service providers (1).

"The implementation of NPS and SIPS signifies the Central Bank's enduring commitment to building a transparent, automated, and fully regulated financial infrastructure. It supports broader goals such as financial inclusion, digital governance, regional integration, and private sector-led growth."

The Central Bank has outlined multiple risks associated with cryptocurrency use, including the lack of legal oversight globally, volatile price fluctuations based on speculation, and the potential for complete loss of investments (2). The bank specifically noted that cryptocurrencies are often used in criminal activities and lack any form of guarantee or consumer protection (2). Given these concerns, Somali authorities have urged the public to exercise extreme caution regarding virtual assets and to rely instead on the regulated financial infrastructure established through the National Payment System (1).

Source:
https://centralbank.gov.so/nps/
https://www.dawan.africa/news/central-bank-of-somalia-warns-public-against-use-of-cryptocurrencies

Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.