The central bank in troubled Sudan has warned residents dealing with cryptocurrencies that they face several risks, including loss of value. The warning comes as Sudan is grappling with an economic crisis that worsened after the military removed the civilian government.
Sudan’s worsening economic crisis
As Sudan’s currency continues to depreciate, the country’s central bank has warned citizens against using or trading cryptocurrencies, a report said. It warned those dealing with crypto assets that they face risks such as loss of value, financial crime and electronic theft.
The warning from the Central Bank of Sudan (CBOS) comes amid a worsening economic crisis that has seen Sudan’s exports fall by 85% in January. The warning comes even as reports suggest the country’s currency, the pound, is weakening further against the US dollar in the black market. The deteriorating economic situation is believed to be the major factor behind the increasing interest in cryptocurrencies by the residents of Sudan.
However, according to a report published by the Sudan News Agency, CBOS suggested that residents dealing with cryptocurrencies also face legal risks. Such risk, the central bank argued, led to the non-classification of cryptocurrencies as “money or even private money and property” according to the laws of the country.
Other risks also arise from their “lack of material cover” by CBOS as well as issued by unauthorized or unrecognized entities, the report said. However, the report did not specify that Sudan’s military government, which seized power in October 2021, plans to enact new laws that will punish Sudanese residents for ignoring central bank warnings .
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