Ethiopia's Financial Watchdogs Gear Up to Tackle Crypto Despite Ban

Crypto Crackdown: Ethiopia's Financial Intelligence Service Ramps Up Regulation Efforts

Ethiopia's Financial Intelligence Service isn't playing around—they're diving headfirst into regulating virtual currencies, even though they're still banned in the country. It's like trying to put a leash on a wild beast, but they're determined to do it!

The scoop came straight from The Reporter Ethiopia, revealing that Ethiopia’s Financial Intelligence Service is pulling out all the stops to get ready for the crypto storm. They're doing this despite virtual currencies being a big no-no under current Ethiopian law.

At a recent pow-wow of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in Addis Ababa, FIS Director Muluken Amare dropped the bombshell. The meeting was packed with financial security bigwigs from across the region, all laser-focused on tackling the new risks popping up in the financial sector, especially those wild virtual assets.

The FIS isn't going at it alone—they're teaming up with heavy hitters like the United Nations, Russia, and ESAAMLG member states. They're throwing down some serious training to arm financial investigators and intelligence units with the know-how to sniff out and tackle the shady side of crypto, from dodging taxes to laundering cash and funding terror.

The region's got its hair on fire over virtual currencies being misused, and that's what's driving these efforts. Muluken Yirga, a top legal eagle with ESAAMLG, also chimed in at the meeting. He warned that terrorist groups in the area, like Al-Shabaab, Al-Qaeda, ISIL, and Daesh, are getting slick with using virtual currencies to slip through the cracks of traditional financial systems, making it a nightmare for authorities to track and stop their dirty deals.

"We've got all sorts of terrorist groups running wild in our region, from Al-Shabaab to Al-Qaeda, ISIL, and Daesh. These guys are getting more and more savvy, using virtual currencies to rake in and move their cash," Muluken spilled.

Even though crypto trading is officially off-limits in Ethiopia, you've gotta wonder if some deals are still going down under the radar. But Amare made it clear: not every virtual currency transaction is a crime, unless it's tangled up with other bad stuff like funding terror or pulling off fraud.

"Crypto tech is still the new kid on the block, so yeah, some transactions might be happening. But don't jump to conclusions that they're all illegal. The official currency here is Birr, and any virtual deals in other currencies aren't kosher. If they're linked to crimes like terrorism or other shady business, you can bet we'll be all over it," Amare declared.

Whether virtual currencies end up getting the green light or stay in the doghouse, one thing's for sure: the officials are dead set on having the tools to either keep them in line or slam the door shut on them for good.