Financial Crime World

Tunisia Eyes Digital Currency Regulations as Bitcoin Trading Volumes Rise

Growing Demand for Cryptocurrencies in Tunisia

Despite the Central Bank of Tunisia’s cautious approach towards digital currencies, the country has seen a significant increase in crypto trading volumes and exchange sign-ups in the first half of 2021. According to data from UK-based cryptocurrency exchange CEX.IO, Tunisian user registrations rose by 11% in the first four months of this year compared to the same period in 2020.

Global Trend or Local Phenomenon?

CEX.IO’s CEO, Konstantin Anissimov, attributes the growth to a global trend seen by other crypto platforms. He notes that Bitcoin trading volumes on CEX.IO were up over 10% from December to April 2021, with everyday purchases still not being a reality for Tunisian users.

  • Peer-to-peer crypto trading platform Paxful has also witnessed steady volume increases through 2020, with new user registrations and trading volumes rising by 20% between 2019 and 2020 in Tunisia.
  • According to the firm’s Chief Growth Officer, Jan Strandberg, this growth is a testament to the increasing interest in digital currencies among Tunisian users.

Regulatory Uncertainty

However, the Central Bank of Tunisia remains wary of cryptocurrencies due to their “speculative nature,” warning investors that they are not protected by the bank’s guidelines and risk losing significant amounts of money. The bank has yet to issue a crypto licensing framework or guidelines, leaving many wondering about the regulatory landscape for digital currencies in the country.

Arrests and Concerns

In late April, local authorities arrested a young Tunisian man for owning virtual digital currencies, sparking concerns among investors and users. Entrepreneurs like H.A. note that purchasing cryptocurrencies is still difficult in Tunisia, making any growth in trading volumes even more remarkable.

Future Regulatory Path

As the demand for digital currencies continues to grow, it remains to be seen how the Central Bank of Tunisia will regulate this emerging market. Will they adopt a more lenient approach or maintain their cautious stance? Only time will tell.