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Saturday, February 4, 2023

Central Bank of Sudan Warns of Risks Associated With Cryptocurrency

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Central Bank of Sudan Warns of Risks Associated With Cryptocurrency – In a crisis-stricken country, the residents dealing with cryptocurrencies in Sudan have been warned by the central bank that they face a number of risks, including the loss of value.

The warning comes as Sudan struggles with an economic crisis that has deteriorated since the military deposed the civilian administration.

According to a source, Sudan’s central bank has advised citizens against using or trading cryptocurrencies as the country’s currency continues to fall. Those interacting with crypto assets face risks such as loss of value, electronic piracy, and financial crimes.

Also Read: Kenya Central Bank Governor Reiterates His Opposition to Cryptocurrencies

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The Central Bank of Sudan (CBOS) issued the warning amid a deteriorating economic crisis, with Sudan’s exports falling by 85 percent in January.

The warning comes as reports imply that the pound, the country’s currency, is losing ground versus the dollar on the black market. Sudanese residents’ rising interest in cryptocurrency is thought to be a result of the country’s deteriorating economic prospects.

The CBOS, however, has advised that residents engaging with cryptocurrency face legal dangers, according to a report published by Sudan News Agency.

Such risks, according to the central bank, arise from cryptocurrencies’ failure to be classified as “money or even private money and property” under the country’s regulations.

Also Read: Ghana CBDC Development: New Central Bank Document Outlines Key Motivations for Issuing the Digital Currency

Central Bank of Sudan Warns of Risks Associated With Cryptocurrency – Other risks, according to the research, originate from the “lack of material cover” of the certificates, as well as their issue by unlicensed or unaccredited organizations.

The report did not say whether Sudan’s military government, which took control in October 2021, plans to pass new legislation punishing Sudanese residents who ignore the central bank’s warning.

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