According to the Ethiopian Monitor, cryptocurrency service providers in the country have been compelled to register with the government’s cybersecurity body, the Information Network Security Administration (INSA).
The National Security Agency (NSA), which is in charge of Ethiopia’s cybersecurity, has begun to register cryptocurrency service providers and transfer providers in the country. Following a declaration from the National Bank of Ethiopia (NBE) that people are widely using crypto transactions in the country, where the usage of digital currencies is currently prohibited, cryptocurrency service providers have been asked to register. Earlier this year, lawmakers changed a law to reestablish the INSA, including provisions to allow the legal usage of digital currencies. The modified law, according to the report, grants the cybersecurity agency authority over cryptographic products and related transactions. The INSA is also in charge of designing operating procedures and cryptographic infrastructure. The NBE cautioned residents against using cryptocurrency to make payments while also encouraging them to report such activities.
Despite the NBE’s anti-crypto stance, the INSA has recommended crypto service providers operating in the country to comply with its registration obligation, saying:
There is interest among individuals and entities in providing crypto services including mining and transfer. [Therefore] to properly regulate this field, INSA has begun to register individuals and entities that are involved in crypto operations (services) including transfer and or mining.
Crypto service providers have been given a ten-day grace period to finish the registration process. The INSA has also stated that businesses who refuse to comply with its directive will face “legal consequences.”