The central bank of Sudan warns citizens against using crypto as the country’s economy is suffering from a low oil price. Cryptocurrency has been used in countries with unstable economies because it poses less risk than other forms of investment and can be transferred more easily across borders, according to Reuters.
The bank said that cryptos carry high risks, including financial crime, piracy and loss of value.
The central bank warned that they do not have any problems related to cryptocurrency trading, but urged citizens not to rely on them because there are no regulations governing their use and exchange yet. With this cautionary message, the CBoS is trying its best for people who want crypto-related businesses or solutions within the country.
According to a report, the Central Bank of Sudan (CBOS) has told citizens not to engage in cryptocurrency investments due to the “high risks” involved, as the country’s economy continues to deteriorate.
Sudan’s state-owned news outlet SUNA reported on Sunday that financial crime, electronic piracy, and loss of value are among the high risks.
According to the CBOS, cryptoassets are not regarded as money or even private money based on current legislation and regulations.
Inflation soared 360% in 2021 before slowing to 260% in February. Sudan’s economy is in rapid decline since a military coup in October.
Alex Gladstein, chief strategy officer for the Human Rights Foundation, said the warning may be related to an increase in the use of cryptocurrencies, such as bitcoin, in the country during the economic crisis. He said a formal prohibition might be in the works.
Despite a lack of clarity on whether crypto use is increasing in Sudan, according to SUNA’s reports, the CBOS has seen a worldwide proliferation of social networking sites promoting cryptocurrency trading.
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