Despite an official ban on the trading of virtual currencies in Ethiopia, the country’s Financial Intelligence Service (FIS) has signaled a major policy shift by confirming that preparations are underway to regulate them.
The announcement was made by FIS Director Muluken Amare during a recent meeting of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) held in Addis Ababa.
ESAAMLG, a regional body focused on combating financial crimes, includes 21 member states and is based in Dar es Salaam, Tanzania.
Ethiopia Signals Shift Toward Crypto Regulation Amid Global Adoption Trends
Amare’s statement reflects Ethiopia’s growing recognition of the importance of regulating digital assets in light of their increasing global adoption and potential use in illicit financial flows.
By signaling a willingness to establish a regulatory framework, the FIS aims to bring cryptocurrency activities into a legal structure that balances innovation with oversight.
While trading remains prohibited, the move indicates Ethiopia is aligning itself with global trends, where countries are transitioning from outright bans to comprehensive regulations.
It also suggests an effort to ensure financial stability and protect against risks such as money laundering and terrorist financing.
If formalized, the regulations could open the door to a legal crypto market in the country under the watchful eye of regulators.
Ethiopia’s FIS Boosts Crypto Oversight with Help from UN, Russia, and Allies
Ethiopia’s Financial Intelligence Service (FIS) has taken action to improve its capacity to monitor and stop illicit virtual currency transactions in cooperation with the UN, Russia, and other member states.
To help financial security professionals better grasp how digital assets can be utilized for illegal purposes including money laundering and terrorism funding, the project includes specific training sessions.
Before Ethiopia is expected to move toward legalizing and regulating cryptocurrencies, these seminars are a part of a larger initiative to strengthen regulatory and enforcement capabilities.
In order to ensure that any future crypto framework adequately addresses potential dangers and permits safe adoption, the FIS is collaborating with international partners to bring its procedures into compliance with international standards.
Also Read: Bitcoin miners in Ethiopia use 600MW in electricity, Ethiopia to become the next crypto mining hub?
FIS Chief Admits Some Crypto Activity Persist Despite Ethiopia’s Ban
Ethiopia’s Financial Intelligence Service (FIS) Director Muluken Amare acknowledged that while crypto transactions are officially banned in the country, some activity may still be taking place.
He emphasized that these transactions are not legally permitted under current Ethiopian law, which recognizes only the Birr as legal tender. However, he noted that the presence of such transactions doesn’t automatically imply criminality.
As crypto technology is still emerging, the government believes a comprehensive study is necessary to assess the scale and nature of such activities.
Muluken clarified that if any virtual currency transactions are found to be connected to crimes like terrorism or money laundering, they will be subject to investigation.
The statement reflects a cautious but evolving stance on crypto regulation.
Also Read: BitFuFu & Bitmain Sign 2-Year Agreement For Purchase of 80,000 S-Series Bitcoin Mining Machines