The cases of cryptocurrency scams, theft, and fraud have been on the rise all over the globe. Cryptocurrency investors, holders, buyers, and traders‘ portfolios getting hacked and their assets are being transferred to an unknown wallet.
Several Ponzi schemes companies and others also portray themselves as crypto firms, which they later fold up with investors’ funds. Rug pulls, and the ‘pump and dump scheme is also other fraudulent cases. Following the recent spike in cyber crimes and frauds being perpetuated in the crypto space, the Central bank of Ethiopia has taken a precautionary step to protect its citizens.
NBE Mandates All Crypto Companies To Register With INSA
The National Bank of Ethiopia (NBE) released a circular mandating all virtual currency/crypto service providers to register with INSA. According to the report, all crypto, digital asset-related service-providing companies must register with the Ethiopian Information Network Security Administration to continue operating.
The Ethiopian Information Network Security Administration, a cyber-security firm, is saddled with the responsibility of checking crypto firms’ activities in the country. The INSA body was created by Ethiopian lawmakers to protect its citizens and also regulate crypto activities.
Earlier, the National Bank of Ethiopia (NBE) revoked all crypto/digital service provider’s operational licenses. The licenses were revoked and suspended until they registered with the Ethiopian Information Network Security Administration. After the companies/firms register with the crypto-regulatory and security body, their operational license will be renewed or approved.
The National Bank of Ethiopia (NBE) gave a 10-day ultimatum to all cryptocurrency service providers. The financial institution stated that all registration processes must be completed within ten days from the circular release. Companies, firms, and bodies that fail to comply with the regulations and rules will face legal actions from the Ethiopian Government.
Ethiopian Government Adopts Use of Cryptocurrency
The Ethiopian Government has joined the list of countries approving the use and transaction of cryptocurrencies. Ethiopian cryptocurrency enthusiasts are given the right to trade, and transact with cryptocurrencies, with some regulations.
This adoption is coming after the cryptocurrency was banned by the Ethiopian Government which declared virtual currencies illegal. The bill was signed and enacted into law last year by Ethiopian lawmakers.
However, after much consideration, and review, the bill was amended. The Ethiopian Information Network Security Administration was launched to oversee the country’s cryptocurrency space/industry. Although the citizens were banned from using crypto/virtual assets as payment options, they were allowed to trade, buy and sell.
The National Bank of Ethiopia also reiterated that all citizens should report any cryptocurrency scam or fraud. After the 10-day ultimatum, all registered crypto companies will be published for citizens to use and transact on their platforms.
Any unregistered cryptocurrency companies/firms found operating in the country should also be reported to the INSA. The NBE is saddled with persecuting any illegal/unregistered crypto firms or companies.