Crypto Ban for Burundi

Crypto Ban for Burundi
Photo by Clifford Photography on Unsplash

Burundi's central bank has annouced they have banned all cryptocurrency trading across the country. The annoucement came following a group of cryptocurrency investors who pressured te governemtn to introduce safeguards, according to Bloomberg.

The Bank of the Republic of Burundi made a statement through the Director for Microfinance Department, Alfred Nyobewumusi. The statement cited the lack of regulation on currencies such as Bitcoin, Ethereum, and Litecoin in Burundi, among others, has led them to introduce the ban.

"...These virtual currencies are traded on unregulated online platforms around the world, and their values ​​are highly volatile, resulting in speculative transactions that expose the users of these currencies to potential losses without no possibility of legal recourse in the event of a collapse of their value or in case of closure of these cryptocurrency exchange platform," reads the statement on the BRB's website.

“Strong measures could be taken against all those who will not respect this decision,” Nyobewumusi said in an interview in Bujumbura, Burundi’s economic capital.

In May the Reserve Bank of Malawi also annouced a nationwide ban on cryptotrading, citing the lack of regulation of the currencies. India's government is also working through proposals to ban crypto trading due to concerns about potential losses for its citizens.