Burundi, situated in East-Africa, has announced a complete ban on all trading of cryptocurrencies as it cannot offer users protection if issues occur. Burundi bans trading of crypto currencies and warns crypto traders.
Bloomberg reported that while trading virtual currencies, some Burundians had lost money and subsequently asked for the standing government’s intervention.
Following the scenario, Alfred Nyobewumusi, the central bank’s director macro-finance department stated:
“Digital coins such as Bitcoin and Ethereum are now illegal in the country. Strong measures could be taken against all those who will not respect this decision.”
The government wrote in a statement:
“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.”
Personal remittances received in Burundi accounted for 1.2 percent of the gross domestic product of the nation in 2018.
Burundi bans trading of crypto currencies and warns crypto traders. The Bank of the Republic of Burundi reminds the general public that no entity or financial institution is currently authorized to offer remittance or other payment services using virtual currency such as Bitcoin, Ether, Litecoin, Dogecoin, Onecoin, BTC, Coin Coin Fahari, Ello Cash Coin and other similar products.
Officials from Nigeria and Zimbabwe announced in 2017 that they would scrutinize the emerging asset class; therefore, Burundi is not the first nation in Africa to take action against cryptocurrencies.
The Malawi Reserve Bank (RBM) said in May that cryptocurrencies were not in the country’s legal tender. Also, did not constitute a replacement for Malawi kwacha.