Crypto-funded debit card in Burundi

Cryptocurrencies are not recognized as legal tender in Burundi.

They are not regulated by the BRB, meaning there is no legal protection for users or investors.

Financial institutions are explicitly prohibited from engaging in cryptocurrency-related activities.

Cryptocurrency Exchanges: Operating a crypto exchange in Burundi is prohibited.

Custody Providers: Providing crypto custody services is prohibited.

Payment Processors: Engaging in payment processing for transactions involving cryptocurrencies is prohibited. Traditional fiat payment processors would still require relevant licenses from the BRB for their conventional operations, but these licenses would not extend to virtual assets.

Communiqué N° BRB/DGD/2021-002 du 16 Décembre 2021 de la Banque de la République du Burundi (Bank of the Republic of Burundi Communiqué No. BRB/DGD/2021-002 of December 16, 2021).

Bank of the Republic of Burundi Communiqué (March 2019): This is the most significant regulatory action. The BRB issued a communiqué warning the public against the use and trading of virtual currencies, highlighting the risks of fraud, money laundering, terrorist financing, and market manipulation. It explicitly stated that cryptocurrencies are not recognized as legal tender or a regulated financial product in Burundi and that local banks and financial institutions are prohibited from facilitating transactions involving them. This communal acts as a de facto ban within the formal financial system.

Robust AML/KYC Obligations: To combat money laundering and terrorist financing, requiring identity verification of customers and transaction monitoring.

Minimum Capital Requirements: To ensure financial stability and solvency of operators.

Local Presence: Often a requirement for financial services providers to ensure effective oversight and consumer protection.

Law N°1/01 of 04 January 2011 on Anti-Money Laundering and Combating the Financing of Terrorism. This law, along with its implementing decrees and ordinances, establishes the general framework for identifying, reporting, and prosecuting money laundering and terrorist financing activities.

Identification and verification of beneficial owners under FinCEN’s CDD Rule is risk‑based and may be limited by covered financial institutions, rather than being an unconditional, blanket requirement for all federal business relationships.

Ongoing Monitoring: Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the obliged entity's knowledge of the customer, their business, and risk profile.

Enhanced CDD (ECDD): Required for higher-risk situations, such as:

Reporting Thresholds: While specific thresholds might exist for certain fiat transactions, the primary obligation is to report any transaction (regardless of amount) that is suspected of being related to money laundering or terrorist financing.

No Tipping-Off: Obliged entities, their directors, officers, and employees are prohibited from disclosing to the customer or any third party that a STR has been or will be submitted.

Evidence fact bi.aml.type-of-records not found (may have been renamed).

Lack of legal tender status: Cryptocurrencies are not recognized as a means of payment guaranteed by the state.

Stablecoin activities in many jurisdictions, including BI, are no longer entirely outside the purview of financial regulation; however, gaps and weaknesses in crypto‑specific AML/CFT and prudential frameworks, and in their supervision and enforcement, continue to create elevated risks of money laundering, terrorist financing, and consumer protection harms.

The BRB views all cryptocurrencies as unregulated digital assets that are not legal tender and are outside the regulated financial system. Therefore, they do not fit into existing classifications for regulated financial instruments.

There is no licensing regime for stablecoin issuers. No entity can be licensed by the BRB or any other Burundian financial authority to issue stablecoins legally in Burundi.

Communiqué of the Banque de la République du Burundi (BRB) on Cryptocurrencies (e.g., 2021/2018):

Overall Official Stance (Non-Tax Specific):

Burundi imposes a -100% tax rate on both short-term and long-term capital gains from cryptocurrencies, effectively confiscating all gains rather than having no specific legislation.

In Burundi, cryptocurrency is either banned or in a legal grey area with no established income tax regime; no standard income tax on crypto applies.

Emerging Regulatory Landscape: Many developing nations, including Burundi, are still in the early stages of establishing comprehensive regulatory frameworks for cryptocurrencies. The focus often remains on issuing warnings and advisories rather than direct, targeted enforcement actions against specific entities.