A central bank has issued warnings to residents who deal with cryptocurrency in the crisis-stricken Sudan that there are many risks, including losing their value. This warning is issued as Sudan struggles with an economic crisis, which has worsened since the deposed civilian government.
Sudan’s Worsening Economic Crisis
As Sudan’s currency continues to plummet, the country’s central bank has warned citizens against using or trading cryptocurrencies, a report has said. They warned anyone dealing with crypto assets they could lose their value or be liable to financial crimes and even electronic piracy.
The warning by the Central Bank of Sudan (CBOS) comes amidst a worsening economic crisis that has seen Sudan’s exports plummet by 85% in January. The warning also comes as reports suggest the country’s currency, the pound, is losing further ground against the U.S. dollar on the black market. According to some reports, the reason for increased cryptocurrency interest among Sudanese citizens is due to the country’s deteriorating economic situation.
According to Sudan News Agency’s report, however, CBOS suggests that cryptocurrency-related transactions could also pose legal risk. Such risks, the central bank argued, stem from what it said were cryptocurrencies’ non-classification as “money or even private money and property” as per the country’s laws.
The report added that other risks also stem from what the CBOS referred to as their “lack of material cover” as well as their issuance by unauthorized or unaccredited bodies. However, the report did not state if Sudan’s military government, which seized power in October 2021, is planning to enact new laws that would punish Sudanese residents for failing to heed the central bank’s warning.
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