• no ads
  • no ads

Burundi Bans Cryptocurrency Trading Due to Lack of User Protection

Burundi Bans Cryptocurrency Trading Due to Lack of User Protection

The Republic of Burundi in central Africa has banned the trading digital currencies in the country due to associated risks.

As Bloomberg reported on Sept. 4, some Burundian citizens urged the government to take action regarding cryptocurrency trading after they lost money while dealing with virtual currencies. The government subsequently banned crypto trading explaining that it cannot provide appropriate user protection.

Commenting on the issue, Alfred Nyobewumusi, a director at the central bank’s micro-finance department, said, “Strong measures could be taken against all those who will not respect this decision.”

Troubled relations with crypto in Africa

As previously reported by Cointelegraph, the deputy governor of the Bank of Uganda, Dr. Louis Kaskende, warned the public about the limited protections offered to them when they invest in unregulated cryptocurrencies. 

In his remarks, Kaskende clarified that the central bank does not have a comprehensive oversight of all financial services firms and institutions, and that its supervision typically covers commercial banks, credit institutions, foreign exchange bureaus and money remittance service providers.

In May, the Reserve Bank of Malawi (RBM) stated that cryptocurrencies were not legal tender in the country and did not represent a substitute to Malawi kwacha, the local fiat currency.

In a statement to the public, RBM Governor Dalitso Kabambe said that the government is not planning to recognize investments in cryptocurrencies such as Bitcoin (BTC).

Related post