Ethiopia’s Financial Intelligence Service is preparing to regulate virtual currencies, despite their ongoing ban in the country.
As initially reported by The Reporter Ethiopia, Ethiopia’s Financial Intelligence Service has announced that preparations are underway to regulate virtual currencies, despite their continued illegality under current Ethiopian law.
The announcement was made by FIS Director Muluken Amare during a recent meeting of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in Addis Ababa, which brought together financial security officials from across the region to address emerging risks in the financial sector, including those posed by virtual assets.
The FIS’s preparedness efforts are being conducted in collaboration with international partners, including the United Nations, Russia, and member states of ESAAMLG. The training focuses on equipping financial investigators and intelligence units with the skills to detect and respond to illegal uses of crypto, such as tax evasion, money laundering, and the financing of terrorism.
The regional concern over the misuse of virtual currencies has been a key driver of these efforts. Muluken Yirga, a senior legal advisor to ESAAMLG, who also spoke at the meeting, said that terrorist organizations in the region have been using virtual currencies to bypass traditional financial systems, making it harder for authorities to trace and block illicit transactions.
“There are different terrorist organizations operating in our region, including Al-Shabaab, Al-Qaeda, ISIL, and Daesh. These groups are increasingly using virtual currencies to raise and transfer funds,” said Muluken.
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While crypto trading is officially banned in Ethiopia, some transactions might still be taking place in the country. However, Amare noted that it cannot be assumed that all transactions involving virtual currencies are criminal unless they are tied to other offenses such as terrorism financing or fraud.
“… As crypto technology is still new, some transactions may be occurring. That said, it cannot be assumed that all such transactions are illegal. The official currency of Ethiopia is Birr, and any virtual transactions conducted in other currencies are not authorized. If such transactions are linked to crimes such as terrorism or other illegal activities, investigations will be carried out accordingly.”
Whether virtual currencies are eventually legalized or remain banned, the officials made it clear that the country must have mechanisms in place either to regulate them effectively or to enforce existing prohibitions.
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