ADDIS ABABA – Binance, the world's largest cryptocurrency exchange by trading volume, has announced it will cease all peer-to-peer (P2P) crypto transactions involving the Ethiopian Birr (ETB) on its platform. The decision, effective May 15, 2026, comes as Ethiopia's financial regulators intensify their efforts to control digital asset transactions within the country.
Binance Africa conveyed the significant policy shift via its official X (formerly Twitter) account, stating that the move is a strategic step to foster closer collaboration with Ethiopian regulatory bodies and align with the nation's broader financial objectives. The company reassured its users that their funds remain secure and accessible within their accounts, despite the impending halt of Birr-denominated P2P trading.
This development follows a series of stern warnings issued by the National Bank of Ethiopia (NBE) regarding the legality of cryptocurrency transactions. Just two months prior, on February 28, 2026, the NBE released a comprehensive statement declaring all crypto (P2P) transactions conducted in Ethiopian Birr as illegal and strictly prohibited without explicit authorization from the central bank.
The NBE's February directive underscored that any digital asset transactions, regardless of the platform or exchange center, that are denominated in Birr are unequivocally banned if they lack the bank's official consent. This broad prohibition was designed to encompass all forms of cryptocurrency exchange settled in the national currency, signaling a clear intent to regulate the nascent digital finance sector.
Ethiopia's central bank has been vocal about its concerns regarding the unregulated nature of cryptocurrencies, citing potential risks to financial stability, consumer protection, and anti-money laundering efforts. In its previous communications, the NBE indicated that it is actively engaged in consultations with international peer regulators and domestic stakeholders. The objective of these discussions is to formulate a robust and comprehensive regulatory framework that would facilitate safe, secure, and orderly participation in the digital finance ecosystem. This proactive approach suggests that while the current stance is restrictive, the NBE is exploring pathways for future integration of digital assets under a controlled environment.
Despite the immediate cessation of Birr-denominated trading, Binance expressed optimism about its future operations in Ethiopia. In its recent announcement, the exchange conveyed its hope to reintroduce transactions in Ethiopian Birr once favorable conditions are established and a clear regulatory pathway emerges. This statement leaves the door open for a potential return to the Ethiopian market, contingent on the evolution of the country's digital asset policies.
The halt of Birr P2P trading on Binance will undoubtedly impact a significant number of cryptocurrency users in Ethiopia who have relied on the platform for exchanging digital assets with their local currency. It underscores the growing global trend of national governments asserting greater control over digital currencies, particularly in developing economies where financial stability and capital controls are paramount concerns. As Ethiopia continues to navigate the complexities of digital finance, the actions of both regulators and international platforms like Binance will shape the future landscape for crypto adoption and innovation in the East African nation.
Source: Telegram / tikvahethiopia