Centralized exchange in Ethiopia

Public Prohibitions and Warnings: The NBE consistently reminds the public that crypto is illegal.

Criminal Enforcement: Individuals found engaging in illegal activities (like illicit foreign exchange or money laundering) where crypto is used as a medium might face criminal prosecution under existing laws, rather than a specific "cryptocurrency enforcement action" by a financial regulator. These are typically handled by law enforcement and the justice system, not the NBE issuing administrative fines to a crypto company.

Regulator Name: National Bank of Ethiopia (NBE)

National Bank of Ethiopia (NBE) Statement (June 2022) - Via Fana Broadcasting Corporate:

This widely reported statement reiterated that "cryptocurrencies are illegal, not recognized as legal tender."

Cryptocurrency Exchanges: No licenses are available, as trading cryptocurrencies is generally prohibited.

Cryptocurrency Custody Providers: No licenses are available, as holding or managing cryptocurrencies for third parties is not recognized or permitted.

Cryptocurrency Payment Processors: No licenses are available. While the NBE does license payment instrument issuers and payment system operators for traditional fiat-based digital payments (like mobile money services), these licenses explicitly exclude virtual assets.

No, it has not been adopted. The primary reason is that virtual assets and cryptocurrencies are not recognized as legal tender or permissible financial instruments by the National Bank of Ethiopia (NBE).

The NBE has repeatedly issued public warnings against engaging in cryptocurrency transactions, stating that they are illegal and unregulated in Ethiopia. This effectively means there are no legally operating Virtual Asset Service Providers (VASPs) for the Travel Rule to apply to.

Not applicable. Since the FATF Travel Rule for VASPs has not been adopted, there is no effective date for its implementation in Ethiopia.

None are legally covered. Because cryptocurrencies and virtual asset transactions are deemed illegal by the NBE, there are no legally operating or recognized VASPs in Ethiopia. Any entity purporting to be a VASP would be operating unlawfully.

Instead of penalties for non-compliance with the Travel Rule, the concern in Ethiopia is penalties for non-compliance with the ban on virtual assets and related activities.

Engaging in cryptocurrency transactions or operating as an unregistered/unlicensed financial service provider (which a VASP would be considered) would be in violation of Ethiopian financial regulations and potentially broader criminal laws.

Imprisonment, under laws pertaining to illegal financial activities, money laundering, or operating without a license.

Seizure of assets involved in illegal transactions.

Entity Targeted: The general public, financial institutions, and anyone engaging with or promoting cryptocurrencies within Ethiopia. Violation Type: Engaging in transactions with, holding, or promoting cryptocurrencies, as they are not legal tender and are explicitly prohibited. Penalty Amount: Not applicable to a general warning. For individuals, criminal penalties related to illicit financial transactions, foreign exchange violations, or fraud could apply (not specified by NBE in these warnings). Outcome: Cryptocurrencies remain illegal in Ethiopia. The NBE continues to monitor and warn against their use. Financial institutions are prohibited from facilitating crypto transactions.

Outcome: Cryptocurrencies remain illegal in Ethiopia. The NBE continues to monitor and warn against their use. Financial institutions are prohibited from facilitating crypto transactions.