Republic of Burundi bans cryptocurrencies in country

The government of the African state of Burundi has banned the use of cryptocurrencies on its territory to protect consumers from fraudsters and potential losses from trade.

“Virtual currencies are traded on unregulated online platforms around the world and their cost is very volatile, which leads to speculative operations that expose users to potential losses. In addition, users are not able to go to court in the event of a cryptocurrency price collapse or the closure of an unregulated trading platform, ”the CBR said in a statement.

The Bank also emphasized that since digital currencies are not issued by official bodies, they cannot act as a “legal tender”. Consumers should exercise caution and carry out financial transactions only through “institutions duly authorized by the Central Bank”.

The authorities of Burundi decided to completely ban digital currencies after several citizens lost their funds in cryptocurrency trading and turned to the country’s Central Bank. According to the director of the microfinance unit of the Central Bank of Burundi, Alfred Nyobewumusi, citizens who continue to use cryptocurrencies will be “severely punished”.

Note that at the end of 2017, another African state in Zimbabwe refused to recognize Bitcoin as a means of payment, and this year the Nigeria Deposit Insurance Corporation (NDIC) warned about the risks of cryptocurrencies.