The National Bank of Ethiopia (NBE) Warns Against Illegal Birr-Paired Crypto P2P Transactions

The National Bank of Ethiopia (NBE) has issued a public notice clarifying that Birr-paired peer-to-peer (P2P) transactions conducted through trading platforms, exchanges, or similar digital services are not permitted unless explicitly authorized by the central bank.

According to the notice released on February 27, 2026, any form of Birr-denominated P2P trading or exchange involving cryptocurrencies remains prohibited under Ethiopia’s existing regulatory framework. The National Bank emphasized that no platform currently holds authorization to facilitate such arrangements.

The NBE cautioned the public that while global interest in digital and virtual assets continues to expand, these markets are often characterized by high volatility, exposure to foreign exchange manipulation, fraud risks, operational vulnerabilities, and the absence of robust Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) safeguards typically found in regulated financial systems.

The notice also referenced recent international cases in which certain crypto exchanges and P2P platforms experienced financial or technical disruptions, at times restricting user access to funds. Such incidents, the NBE noted, highlight the importance of carefully assessing the risks associated with digital asset participation.

The National Bank of Ethiopia stated that it is working toward establishing a comprehensive regulatory framework for digital assets. This process includes consultations with international regulators and domestic stakeholders to ensure alignment with global best practices while safeguarding financial stability and protecting the integrity of Ethiopia’s national payment system.

Until a formal framework is introduced, Birr-paired P2P cryptocurrency transactions remain prohibited.