Central Bank of Sudan warns crypto investors amid economic crisis

The Central Bank of Sudan warned its citizens against investment in Cryptocurrencies and also reminded them that cryptocurrencies are highly risky assets, which are not categorized under laws. 

Sudan is a Northeast African country that is currently under critical economic downturn. In 2021, Sudan saw 360% inflation while in February inflation was 260%, which is enough to give an introduction to the bad financial stability of the country. Under these situations, people are moving rapidly toward crypto investment to fight against such inflation. 

Last Sunday, SUNA, a local state-owned media outlet, reported that the Central Bank of Sudan (CBOS) warned citizens about the risks involved with the investment in cryptocurrencies. 

The Central Bank reportedly stated that Cryptocurrencies are not legal assets in the state and also not under any force. And these are also not categorized, so are very risky. 

“(Cryptocurrencies) are not classified as money or even private money and property by the legislation and regulations in force in the country.”

The Central Bank noted the illegal use of Cryptocurrencies like financial crime, electronic piracy, and loss of value after investment.

According to reports, these warnings by Sudan’s central bank are coming because of the increasing investment and adoption of cryptocurrencies during this economic crisis. 

On 28 March, Alex Gladstein, chief strategy officer at the Human Rights Foundation, responded to this statement of the Central Bank of Sudan and noted that there are chances of development work in favour of the crypto ban. 

Sudan’s central bank warns against civilian use of Bitcoin and cryptocurrencies, a reaction to increased adoption in the country, where the inflation rate exceeds 400%

Friends there say a formal ban is in the works pic.twitter.com/AbXUwDafuP

— Alex Gladstein (@gladstein) March 27, 2022

However it is not confirmed whether crypto Investment and related activities surged rapidly or not, at ground level, but report of SUNA confirmed that the Central Bank started to give attention to this industry more closely because of the increasing promotions of Cryptocurrencies trading on social media platforms.

Read also: Crypto company WireX Withdraws license application From UK FCA