Ethiopia doubles down on its crypto ban while mining Bitcoin at scale

Ban Widens Beyond Cryptocurrencies

Ethiopia's central bank has drawn a harder line on digital assets. The National Bank of Ethiopia (@NBEthiopia) issued a formal public notice on July 23, 2026, clarifying that its prohibition is not limited to cryptocurrencies but covers all digital representations of value that can be electronically traded, transferred, exchanged, or used for payment and investment purposes.

The restrictions cover the exchange of virtual assets for fiat currencies, transfers between different forms of virtual assets, and the safekeeping or administration of virtual assets. The notice did not announce new regulations or enforcement measures, but reiterated the existing legal restrictions governing virtual assets in Ethiopia.

The central bank urged the public to refrain from engaging in unauthorized transactions involving virtual assets, citing risks including legal consequences, fraud, scams, cyber-related threats, and market manipulation.

Mining for the State, Banned for Citizens

The notice lands awkwardly given Ethiopia's parallel role as one of Africa's fastest-growing $BTC mining hubs. State-owned Ethiopian Electric Power has allocated around 600 megawatts to mining operations, making use of surplus hydropower, a move that boosts energy utilization and generates substantial government revenue. Ethiopia legalized Bitcoin mining in 2022, offering cheap electricity from clean sources.

Ethiopia's mining capacity translates to roughly 2.25% of the total Bitcoin hash rate, with the country ranking fourth globally, trailing only the United States, Hong Kong, and other parts of Asia. The result is a striking contradiction: citizens are barred from holding the asset that their national grid helps produce.

Adding to the complexity, Binance, the world's largest cryptocurrency exchange, restored access to its platform for Ethiopian users last month through state-owned Ethio Telecom, citing successful regulatory engagements. Behind the scenes, Ethiopian financial authorities are said to be working with international partners on a structured regulatory framework for digital assets. For now, however, the public message from the NBE is unambiguous: stay away.

Sources:
National Bank of Ethiopia Re-emphasizes Strict Ban on Virtual Assets and Cryptocurrencies, Capital Market Ethiopia
NBE Reaffirms Ban On Virtual Assets, Warns Public Against Crypto Transactions, The Reporter Ethiopia
Ethiopia Emerges as a Global Bitcoin Mining Hub, FurtherAfrica