On-shore VASP 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.

They carry significant risks, including price volatility, lack of consumer protection, and potential use for illicit activities such (e.g., money laundering and terrorist financing).

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.

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:

Politically Exposed Persons (PEPs)

Customers from high-risk jurisdictions

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.

Copies of identification documents obtained during CDD.

Account files, business correspondence, and transaction data.

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.

Any Pending Custody Legislation:

No Public Information: As of the latest available information, there is no publicly announced or pending legislation specifically addressing cryptocurrency custody or a broader digital asset regulatory framework in Burundi. While the global trend points towards increased regulation of digital assets, Burundi has not yet indicated movement in this direction.

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.

Central Bank Stance: The primary financial regulator in Burundi is the Banque de la République du Burundi (BRB). Like many central banks in Africa, the BRB has generally adopted a cautious stance towards cryptocurrencies, often stating that they are not recognized as legal tender and advising citizens of the associated risks (volatility, scams, lack of consumer protection). These are regulatory statements but not enforcement actions against specific entities.