ADDIS ABABA, July 23 – The National Bank of Ethiopia (NBE) has widened its restrictions on digital assets, warning that transactions involving virtual assets remain prohibited unless explicitly authorised by the central bank.
In a notice issued on Thursday, the regulator clarified that its restrictions extend beyond cryptocurrencies to include any digital representation of value that can be traded, transferred, exchanged or used for payments, investment or similar purposes.
The move expands on a February 2026 warning, when the NBE specifically targeted Birr-denominated peer-to-peer cryptocurrency transactions conducted through trading platforms and exchanges. The central bank said such activities were unauthorised and exposed users to risks including fraud, scams, market manipulation and operational failures.
The latest notice broadens the regulatory scope by covering a wider range of virtual asset activities, including exchanges between virtual assets and fiat currencies, transfers of digital assets, the custody or administration of assets, and financial services linked to the issuance or sale of virtual assets.
The central bank said the prohibition applies unless such activities receive approval under Ethiopia’s existing legal framework.
The NBE advised the public to avoid engaging in virtual asset transactions, citing potential exposure to legal risks, cyber threats, fraud, market manipulation and significant financial losses.
The clarification comes as authorities globally grapple with regulating digital assets that operate outside traditional financial systems. In Ethiopia, the central bank has maintained a restrictive position while indicating that virtual asset activities require regulatory oversight before they can be permitted.
