Ethiopian Central Bank Expands Crypto Ban to Include Exchange Transfer, Custody, and Issuance

The clarification reaffirms that Ethiopia's restrictions apply to all virtual asset activities not just cryptocurrencies, and warns that only services expressly authorized by the central bank are permitted. The National Bank of Ethiopia (NBE) has expanded its clarification on the country's virtual asset ban, confirming that the prohibition extends beyond cryptocurrencies to cover a broad range of digital asset activities.

In a public notice issued on July 23, 2026, the central bank said the ban covers the use, purchase, sale, exchange, transfer, trading, settlement, and facilitation of transactions involving virtual assets. According to the NBE, prohibited activities also include:

Exchanging virtual assets for fiat currencies or other virtual assets.

Transferring virtual assets.

Providing custody or administrative services for virtual assets.

Offering financial services related to the issuance or sale of virtual assets.

The central bank stressed that the restriction applies to any digital representation of value that can be electronically traded, transferred, exchanged, or used for payments or investment, not just cryptocurrencies. The NBE warned that individuals or businesses involved in unauthorized virtual asset activities could face legal consequences, while also highlighting risks including fraud, scams, cyberattacks, market manipulation, operational failures, and significant financial losses.

Although the notice broadens the scope of activities covered, it does not introduce new regulations or enforcement measures. Instead, it reinforces Ethiopia's existing legal position that virtual asset activities remain prohibited unless expressly authorized by the central bank. The clarification comes as Ethiopian authorities continue tightening oversight of digital payments and capital flows, reaffirming the country's cautious approach toward cryptocurrencies and other virtual assets.