Ethiopia’s Financial Intelligence Service (FIS) has launched efforts to establish a regulatory foundation for cryptocurrencies, even while crypto trading remains banned. The move was disclosed during a regional anti-money laundering summit held in Addis Ababa.
According to a report by The Reporter, FIS has started teaching financial crime experts how to notice and address unauthorized transactions related to digital currencies. Director Muluken Amare admitted that the training is meant to prepare EFSA for the possible future regulation of crypto.
Even if using cryptocurrencies is still blocked by the National Bank of Ethiopia, the FIS recognizes that there is some crypto activity in the country. As it stands, the Birr is recognized by law as the only acceptable currency for doing financial transactions in Ethiopia.
“Trading in digital currencies other than the Ethiopian Birr is not allowed in Ethiopia,” Amare noted. “But we are offering training to prepare for the possibility of unauthorized activities.”
Regional Experts Warn of Criminal Use of Crypto
Other than the United Nations, Russia, and ESAAMLG’s 21 members, the initiative is also supported by international partners. It is aimed at developing capabilities and intensifying supervision of virtual assets.
Kamal Anwar, a United Nations counter-terrorism official, highlighted serious issues with digital assets being misused to commit corruption, support terrorism financing, and carry out tax evasion. Muluken Yirga, a legal expert at ESAAMLG, points out that terrorist groups such as Al-Shabaab, ISIL, and Al-Qaeda are making use of cryptocurrency more often.
He explained that efficient coordination at the regional level and smart financial intelligence with updated enforcement means are essential to deal with crypto-related crime. As a result, Ethiopia is working harder to improve its ability to catch illegal drugs.
Although cryptocurrency use is still not allowed, FIS sees that some types of crypto transactions are made legally. It will evaluate how much resources are being used domestically before making more recommendations. Investigations will only start if activities in the bank relate to terrorism or money laundering.
Though no significant incidents related to crypto have come to light in Ethiopia, the authorities are vigilant. Right now, the government is looking at every alternative, including legalizing cannabis, while trying to secure a strong regulatory plan.
