Burundi Bans Cryptocurrency Trading Due to Lack of User Protection
Following a request from the public, Burundi has prohibited digital currency trading in the country due to a lack of protection for users.
Burundi has banned the trading of digital currencies due to a lack of protection for the public.
As Bloomberg reported on Sept. 4, the government was urged to take action after some citizens in the central African country lost money while dealing with digital currencies. Crypto trading was subsequently banned.
Alfred Nyobewumusi, a director at the central bank’s microfinance department, said: “Strong measures could be taken against all those who will not respect this decision.”
Troubled relations with crypto in Africa
As previously reported by Cointelegraph, the deputy governor of the Bank of Uganda, Louis Kasekende, has warned the public about the limited protections they have when investing in unregulated cryptocurrencies.
In his remarks, Kasekende stressed that the central bank does not have a comprehensive oversight of all financial services firms and institutions — and that its supervision typically covers commercial banks, credit institutions, foreign exchange bureaus and money remittance service providers.
In May, the Reserve Bank of Malawi (RBM) said cryptocurrencies were not legal tender in the country and did not represent a substitute to Malawi kwacha.
RBM Governor Dalitso Kabambe said the government is not planning to recognize investments in cryptocurrencies such as Bitcoin (BTC).