The agency, which oversees cybersecurity in the country, has reportedly announced that all crypto service providers avail themselves for registration in the next 10 days to avoid legal measures as from August 24, 2022.
According to INSA, ‘there is interest among individuals and entities in providing crypto services including mining and transfer.”
As such, and in accordance with the newly ratified law:
“INSA has begun to register individuals and entities that are involved in crypto operations (services) including transfer and or mining.”
– Ethiopia Information Network Security Administration (INSA)
In June 2022, the National Bank of Ethiopia (NBE), which is the Central Bank of Ethiopia, warned that digital currencies are being used to conduct informal financial transactions and money laundering schemes in Ethiopia.
However, at the same time, the NBE said digital currencies like bitcoin are not legally recognized as a transactional and payment method. Birr is the only legal currency in Ethiopia, according to the regulator.
In early 2022, INSA got the mandate from the legislature in Ethiopia to ‘regulate and control cryptographic products and their transactions.’
The mandate also gives INSA the authority to set all necessary criteria and operating procedures together with establishing infrastructure. Failure to comply now means that INSA can request the appropriate body to take necessary legal action.