Is crypto legal in Ethiopia?

Crypto in Ethiopia sits in an unusual position. Using crypto to pay for things is not allowed, and the central bank has warned people not to trade it, but bitcoin mining by licensed companies is permitted and has grown quickly. As of October 2026, there is no licensing system for crypto exchanges in the country.

Is bitcoin legal in Ethiopia?

Bitcoin is not legal tender. In June 2022 the National Bank of Ethiopia (NBE) issued a public statement saying that all financial transactions in the country must be settled in birr. The bank said it does not recognize digital currencies such as bitcoin as a means of payment and has never authorized anyone to use them that way.

The NBE also described crypto transactions as illegal and linked them to informal dealings and money laundering. It asked the public to report suspected illegal transactions. A 2025 legal review by an Ethiopian law firm says the newer central bank law, Proclamation No. 1359/2024, explicitly prohibits using crypto for payments.

Is crypto trading legal in Ethiopia?

The 2022 statement urged people to stay away from trading digital currencies. No crypto exchange is licensed or officially recognized in Ethiopia, according to a 2025 overview of the rules. The national cyber agency, the Information Network Security Agency (INSA), has also been given a mandate to register people and businesses involved in crypto operations.

That means anyone buying or selling crypto in Ethiopia does so without local legal protection, and the authorities have said they may act against people who break the rules. For how other countries handle this question, see is cryptocurrency legal.

Is crypto mining legal in Ethiopia?

Yes, for licensed companies. Ethiopia became one of the fastest growing bitcoin mining locations in 2024, reportedly holding about 2.5% of the global bitcoin hash rate, helped by cheap hydropower. The government licenses both foreign and local mining firms.

Foreign miners register a local company with the Ethiopian Investment Commission under the data center category. They sign power purchase agreements with the state utility, Ethiopian Electric Power, and pay for electricity in foreign currency, which the country needs. INSA registers mining operators and regulates the import of mining machines. The 2025 review notes that licensing rules have changed often and that power prices may be revised.

Mining income is taxed under the general income tax law, and there is no special crypto tax guidance yet. Read more about how mining rules differ in is crypto mining legal and crypto regulation around the world.

Rules differ by country and change often. Check the National Bank of Ethiopia or a qualified professional for your own situation.