The National Bank of Ethiopia (NBE) has issued a public notice clarifying that its prohibition on virtual assets extends well beyond cryptocurrencies, warning that a broad range of virtual asset activities remain illegal unless expressly authorized under the country's existing legal framework.

In the notice, dated July 23, 2026, the central bank stated that the ban covers the use, purchase, sale, exchange, transfer, trading, settlement, and facilitation of transactions involving virtual assets. The NBE emphasized that the restriction applies not only to cryptocurrencies but to any digital representation of value that can be electronically traded, transferred, exchanged, or used for payment, investment, or similar purposes.

That broad wording is significant for users and service providers because it places the focus on the function of the asset and related activity, rather than on whether a product is commonly described as a cryptocurrency. Under the NBE's clarification, activities involving other electronically transferable stores of value may also fall within the prohibition if they are not expressly authorized.

According to the NBE, specifically prohibited activities include:

• Exchanging virtual assets for fiat currencies or other virtual assets
• Transferring virtual assets
• Providing custody or administrative services for such assets
• Offering financial services related to the issuance or sale of virtual assets

The central bank urged members of the public to refrain from participating in virtual asset transactions, warning that those involved could face legal consequences as well as risks associated with fraud, scams, cyberattacks, operational failures, market manipulation, and substantial financial losses.

The notice does not introduce new regulations or enforcement measures. Instead, it reaffirms Ethiopia's existing legal restrictions governing virtual assets while clarifying that the ban should not be interpreted as applying solely to cryptocurrencies.

The NBE has consistently maintained a cautious stance toward cryptocurrencies and other digital assets, arguing that transactions involving such instruments fall outside Ethiopia's authorized financial system unless explicitly approved by the central bank. The latest notice reinforces that position at a time when regulators in several markets are paying closer attention to payment rails, peer-to-peer trading, and services that connect digital assets with local currencies.

The clarification comes amid broader regulatory pressure across the region, with more P2P platforms suspending Ethiopian Birr transactions following earlier regulatory actions.