Seven Cryptocurrency Applications in Ethiopia Banned
Seven cryptocurrency applications in Ethiopia have been banned. The Ethiopian government this week officially announced the ban.
The applications were allegedly being used to carry out illegal financial transactions. The ban seems to be part of a wider operation launched by the Ethiopian government against money laundering, financial scams, tax evasion etc. So far, the government has not announced the names of the 7 cryptocurrency applications in Ethiopia which have been banned.
In a related development, 4 Ethiopian Electric Power (EEP) senior officials were arrested this week for signing unauthorized electricity supply contracts with 36 cryptocurrency data mining companies operating in the country. In 2022, Ethiopia officially legalized crypto mining and it turned into a major destination for Bitcoin mining due to its cheap hydroelectric power. However it has frozen new power permits as it is facing domestic energy shortages.
Last month, National Bank of Ethiopia (NBE) reiterated complete ban on cryptocurrency and other virtual assets. The bank issued a public statement stating that all transfer, trading, custody etc. involving virtual assets are illegal.
