Sudan Warns Citizens Against Cryptocurrency Use Amid Economic Crisis and Financial Crime Concerns

The Central Bank of Sudan (CBOS) has issued a stern warning to citizens against using cryptocurrencies, citing “high risks” due to financial crime, electronic piracy, loss of value, and legal uncertainties. This move comes as the country’s economy continues to spiral out of control.

Concerns Surrounding Cryptocurrency Use

• Financial crime: The CBOS is concerned about the potential for cryptocurrency use to facilitate illegal activities.
• Electronic piracy: The bank is worried about the risk of hacking and theft associated with cryptocurrency transactions.
• Loss of value: Cryptocurrencies are known for their volatility, and the CBOS is concerned that citizens may lose value if they invest in them.
• Legal uncertainties: Cryptocurrencies are not recognized as money or private property under Sudanese legislation and regulations.

Increased Adoption During Economic Crisis

According to Alex Gladstein, chief strategy officer at the Human Rights Foundation, there has been an increase in cryptocurrency adoption in Sudan during the economic crisis. This may have prompted the CBOS to issue its warning.

Global Promotion of Cryptocurrency Trading on Social Media

The CBOS is also concerned about the widespread global promotion of cryptocurrency trading through social media platforms, which it claims is increasingly popular among Sudanese citizens. While it remains unclear whether cryptocurrency use is indeed accelerating in the country, the Central Bank’s warning suggests a potential crackdown on crypto activity may be imminent.

In summary, the CBOS has warned citizens against using cryptocurrencies due to their high risks and legal uncertainties. The bank’s concerns come as the country’s economy continues to struggle, and it remains to be seen how this will impact cryptocurrency adoption in Sudan.